JRPGfan said:
Why limit yourself to 20m though? If you can do 25m-30m? Id try to lower prices and aim for the moon. |
Pursuing pricecuts too aggressively too quickly will result in a more rapid degradation of perceived value. You'll hit your pricing floor faster, which will put you in the position of not being able to cut prices to keep up the momentum built mostly on bargain pricing. Look at Xbone. MS abused the fire sale strat so much early on that for the past couple years trying to sell the Xbone at MSRP was a lost cause. Sales soared when they did firesales...at first. But every bump got lower and lower. And after each and every one, sales cratered. The Xbone isn't worth what MS needs to actually be selling it at anymore, not in the eyes of the consumer.
Or to put it more simply, you always ere high because you would rather be a bit high and have to do a little trimming than too low. Because you can always lower the price, you can never raise it.
