Larry wrote:
> =?UTF-8?B?U01TIOaWr+iSguaWh+KAoiDlpI8=?= <scharf.steven@geemail.com> wrote
> in news:476a9a01$0$84224$742ec2ed@news.sonic.net:
>
>> Yes. Pricing needs to be set to maximize profit. You can be selling your
>> product too cheaply and be leaving money on the table, or you can be
>> charging too much and be losing customers that would raise profits by
>> virtue of higher volume. You can damage the image of your product by
>> getting into a price war with competitors that have a poorer product,
>> but you have to be careful to not charge so much for your superior
>> product that customers decide to put up with your competitors cheaper
>> product.
>>
>>
>
> If this thread continues, I think we all deserve some credit hours in
> Economics on our student records......

There are some good case studies of pricing in the Harvard Business
Review. The Tagamet versus Zantac is a classic.

It's called entrepreneurial pricing. Apple tried that with the iPhone
and failed, being forced to lower their price. Verizon is able to engage
in entrepreneurial pricing to some extent because their network is so
much better than the AT&T, Sprint, or T-Mobile networks, and because the
consumers understand this and enough are willing to pay extra for far
superior coverage.