Do you believe in the ten bob economy? Most of you would say no, yet you buy the small package of salt when you check into your kitchen and find none. Happens also with credit, when you are run out and your money is in the bank.(Polite way to say you are broke 😉 )
Ten bob economy is booming, and to prove this, we have a very big-recently-gone-international bank, Equity Bank to show. This bank has grown by leaps and bounds from a building society in the early 2000 to one of the biggest in the region. I previously wrote a while back about how coca cola can assist you as you plan your website during and after development. Now my point was to coca cola and ten bob economy.
I was recently at an ATM queue when i saw this big ad for coca cola 200 ml drink, retailing at 15 bob. Remember when soda was selling at 15 bob? Now there are reasons the prices went up, we are not going to discuss these. The 15 bob bottle it is! Coca cola ensured that you still buy a drink even when you only have 15 bob in your pocket, still sells the bigger packages though.
This means they have all levels of affordability in mind, and whatever level you find yourself in, you will buy something. I write this with intent to communicate to entrepreneurs, mainly techies.
When you are developing your product to push to the masses, you may want to ensure that the product is priced well to ensure you get your margin, while also not chasing away the existing customers.
Picture a situation where you are selling app downloads. You figure that if the app is good in the app store, like the very successful Angry Birds game, word of mouth and social media is good enough to push sales. When you are targeting the global market you wanna ensure you dont chase half the would-be buyers away by high pricing.
I would rather you class the product you are selling. Just like coca cola did with their small bottle. Create a lite version that has good enough features to attract the good talk, then strike with the greater more priced version with striking features.
And dont forget to thank me when my advise helps you suceed. 🙂