Re: How do developers decide the prices of products?
Hi.
Well, the price for a product is generated by the market the product is aimed for. A company needs to conduct an thurrogh market analysis by taking prices of other companys into account, own finances, production costs, rent for the warehouses to store the products and so on.
from that, a company can calculate the best price and launch the product onto the market, with the first of the 5 product life cycles introduced.
The prices with for example 9.99 are done to make the customer feel he is paying lless than 10 dollars, even though it's just 1 Cent, one of those little marketing tricks used. In the netherlands I found out they mostly set the prices to let's say 9.95 for example, I noticed that in some stores and I quite like the idea of that.
Greetings Moritz.
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