As I read Gavin's email the first few lines said he is add, but I got to
admit good thinking for this young man, I can see a nerd in the making for
sure,, Don't take nerd as a insult, it really isn't. It is the only way a
norm can id us so it fits their normal life,,,,,
> From: Gavin Williams <gavinwilliams_at_mac.com>
> Reply-To: newtontalk_at_newtontalk.net
> Date: Wed, 31 Jul 2002 13:48:34 -0400
> To: newtontalk_at_newtontalk.net
> Subject: [NTLK] Highly-Educated Economic Analysis
>
> I have no level of education in the field of economics. in fact, i am
> only in high school. But I see a huge advantage of starting the price
> high and lowering it over time. But again, i don't know what im talking
> about.
>
> say you have 5 levels of users:
>
> 1) Hard-core Newton extremists with plenty of cash
> 2) Hard-core newton extremists with not so much cash
> 3) Middle users with plenty of cash
> 2) Middle users with not so much cash
> 4) Lower users, or any users who are completely broke
>
> The hard core Newton users, who are probably about a third of the people
> (don't remember who said that), will probably buy it at this price. Say
> in a few months the price is lowered to, say, 35-40$. Then it will
> become more attractive to the hard-core guys with not so much cash. You
> see where this is going? Each time the price is lowered it becomes
> attractive to a different group of users. Eventually everyone who would
> have bought it at the price that the product ends up at will have (Sept
> for the broke users, but they'll probably end up finding it in a
> dumpster anyway : p ). Only he makes a hell of a lot more money than if
> he started at that price. This may not be his plan, but if it is it
> makes sense to me.
>
> So there is my highly educated economic analysis. Im probably wrong
> about everything, but hey, i had bean thinking this since the first post
> about the high price and had to get it off my chest. I think its the
> ADD : )
>
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