Apparently price is a hot topic right now. Apple's move a few weeks ago to cut the price of the new iPhone infuriated many customers who had already purchased the gizmo. Tech buyers who are early adopters realize they pay the price for their addiction, but Apple shouldn't be surprised that dropping the price so quickly after launching the device made people fume.
As regular readers here know, I've addressed price here a few times recently and I guess we're not the only ones whose clients are wrestling with issues around price. The Wharton School's newsletter indicates this is a big topic since it's the lead article in this week's issue.
The article calls pricing one of the last gut-based business strategies (I'm paraphrasing here), and that's probably true for most people and businesses. Like every other decision we make, emotion plays a big role in what we finally decide to do. Even if we do some competitive research, there's still an element of emotion involved most of the time.
To avoid the backlash that Apple experienced, try to base the decision on as many rational issues as possible. If it's possble, do some type of testing to discover the best price point.
Here are a few articles that give some good information and strategy on pricing.
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