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Pricing Low-Marginal-Cost Products

Clay Shirky on the NEC list: don’t take products with vanishingly small marginal cost and make them too expensive for your target audience to want to use.

In other news, as I wrote on Sep 5, starting Sep 10, inter-city SMSes will now cost Rs 2 a pop, up 2x the previous price of Rs 1. I wonder what the GSM marketers had in mind: India’s price-sensitive teens/college student market — the biggest users of SMSes — can’t be very happy about this.

11 September 2003 8:34 am

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