Vaulxis wrote:In economics, it is also sometimes more profitable to lower a price so more people buy the product. Let's say, extreme case but brings the point best, a console is sold for 2000$, not many people will buy it, but lets say 4 do. What would be more profitable, 4 people buying a product for 2000$, or thousands buying it for 400$?Vertine wrote:My guess is that if J&L wanted to charge $5/month they would. And if they find in due time that the current pricing structure is too expensive, they adjust. But if enough people actually pay under the current pricing scheme, then in effect there's no reason to make it cheaper. Sometimes in economics you find out how much something is worth by charging different prices for it.
That's absolutely right, but as jorb just pointed out, they have really no idea what the optimum price point is, and the only way to find that out is to start somewhere.