Pricing is hard. A lot of new businesses are trying to figure it out. One startup wants to let people charge for their content. But their system doesn’t let me sell a video for 1.99$. So that’s out for me.
It’s all about convenience and value. Can I backup my pictures folder? I’ll pay 35$/year for that. No need for it to be highly available, I’ll only need it when I accidentally delete something or my computer crashes. Can I backup my business files? 4.99/month sounds reasonable. The backup needs to be automated.
It’s very hard for the creators of a service to understand what people will pay for. Ringtones sell for 2.99$ a piece! For a ringtone! It’s the convenience and the value – not the data. iTunes set the price of a song at 99c. A movie at $1.99. And it’s convenient.
I wonder if there are any good ways to research pricing in a new market?