> Date: Mon, 14 May 2007 12:59:38 -0400
> From: Russ Tyndall <[EMAIL PROTECTED]>
> Subject: Re: Keynote Reality Distortion
> To: REALbasic NUG <[email protected]>
> Message-ID: <[EMAIL PROTECTED]>
> Content-Type: text/plain; charset=US-ASCII; delsp=yes; format=flowed
>
> On May 14, 2007, at 11:47 AM, Brendan Murphy wrote:
>
> If you (the plugin developer) are happy setting your prices very high
> and selling only one a week, then by all means do so.  The problem is
> that products that are priced too high attract lower-priced
> competition.  Eventually, you will find yourself not selling anything.

I strongly disagree with this stance!  The opposite is true.

If I can buy the entire Einhugur package for $100 per year then  
there's NO WAY for another developer to undercut that market.  It  
would be suicide.  Why buy mine when you can buy his for that little?

But, if that price is instead $100 PER CONTROL then I *might* be able  
to enter the market assuming my control is as good or better.   
Developers have to make a living off their wares.  As far as I know,  
neither MonkeyBread nor Einhugur are full time RB developers.

I also think you misunderstand how markets work.  In my experience  
the higher the price the more the perceived value.  A Toyota and  
Lexus are both very nice vehicles.  But can you honestly say that the  
Lexus that is twice as expensive has twice the value?  Why buy a Mac  
for $1300 when you can get a Windows PC for $600?  They both do the  
same thing.

Obviously there's a limit to higher prices/perceived value but the  
point is that low prices for software and/or services stifles  
competition.  I believe it's called the barrier to entry.


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