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Old 08-27-2006 | 10:15 PM
  #60  
GeneG
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From: Yardville, NJ
Default RE: FS one by Horizon Hobbies

Its the market that drives the price point. Not the individual. As much as you want it to be $100 because that it what you feel its worth, the market says otherwise. All RC Flight sims are in the same price range. Do you think that is just a coincidence?. Thats the price the market settled on. They will make money on FS One selling it at $209 (or $200) because they know that people have already bought other sims at that price and they think that FS One is a better product.

I know its hard to swallow but the idea is to make as much money as you can, not just enough. When you price a new product for market you always price it high for two simple reasons. People will pay a premium to be an early adopter and you can ALWAYS lower the price (you can NEVER raise it). You want to price a product so that a small percentage of your customers complain about it and don't purchase it. Being in that situation means you priced the product right and are getting the best return on your investment through the majority of your customers that are buying it.

If it was your product and your R&D money that went into it you would do the same exact thing. Don't fool yourself into thinking otherwise.