Quote:
Originally Posted by Dusty
My mantra has always been...
"Cut the price in half and I will buy twice as much"
The music industry never understood this till Apple sold it for less than a dollar and made millions.
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If they cut the price in half and you only buy twice as much they are going to lose a lot of money.
I strongly suggest people take a few business classes. If you do, you will find that there are some fixed expenses that can be split up between each product sold. SO if you sell twice as many, the cost for each will be half as much.
On the other hand, there are a number of costs that are per unit. These cost the same no matter how many you sell. That means that if you cut the price in half, you are just cutting your profit.
Further the truth is that when you cut the prices in half, it doesn't mean you actually will buy twice as many. In things that take a fair amount of time of your discretionary time to consume such as books, this is very unlikely due to the fact most people have only so much time that they read.