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Originally Posted by Barcey
Highroller's reaction is very typical to the irrational e-book pricing. Pricing e-books higher then what a paper version is selling for will just continue to upset people. "Experimenting" to find out the maximum price that people will pay (before they get pissed of and stop buying) is not how you price virtual goods. That's what market research is for. You have to do it properly and you have to accept the results and then figure out how you can deliver to that price point, increase the product value or go out of business.
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Ask the
customer what the price should be, and of course you'll get a low answer. The problem is what occurs when that answer is lower than the minimum you must charge to make money on your product.
"figure out how you can deliver to that price point, increase the product value or go out of business" is easy to say but far more complicated in practice.
What would you recommend to add value to an ebook?
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Consumers are not going to react the way you think they should. Virtual goods have different economic rules then physical goods. Pretending they don't doesn't make it so.
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What different rules? Virtual or physical, the product has a cost, and the producer has an amount it has to make to stay in business. That fact doesn't change because something is virtual.
The disagreement comes over what the costs of making the virtual product are. For publishing and ebooks, the fact that the product is virtual drops the print/bind/warehouse/distribute steps, but those don't account for anywhere near as much of the production costs as many folks like to assume.
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Dennis