
Stop guessing! Use A/B testing to determine ideal price for your product
Oh, the question thou fear the most:
What price should I offer my new product X at?
Determining right price for your product is perhaps one of the most difficult tasks when you are launching a new product or service. Pricing for physical goods is simple. For example, if you are manufacturing staplers, all you need to do is to calculate cost of production and distribution, slam 20% margin on it and there you have the price you can sell your shiny stapler machines for.
Economics 101 (price elasticity of demand)
But for digital goods with no cost of production, it is not that simple. This zero cost of production complicates pricing decisions because then you...