On 2/4/2011 1:33 PM, Nathan wrote:
> I don't know if anyone has done studies, but user perception (rational
> or not) plays a part in whether they will buy.

I read something a while back about pricing; I think it was PopCap
talking about trying $10, $15, and $20 price points for their casual
games. IIRC, they sold the most units at $10, but either fewer or the
same number of units at $15 vs. $20 -- and their profit was highest at
$20, because the increase at $10 wasn't enough to compensate for the
lower price.

The takeaway is that someone willing to spend, say, $1.63 would likely
also spend $1.99, and so by pricing at $1.63 means you're leaving $0.36
on the table for every sale. And you can extend that to Euros or Pounds
or whatever; if you use the round number that people are really willing
to spend, you can make a bit more on each sale.

Tim

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