Proving Amy Hoy Wrong: The $0.99 Challenge

Psyberartist via Flickr

Photo credit: Psyberartist via Flickr

I’ve been following Jarrod Drysdale’s work for some time. I first learned of him through his great post on his failed startup, and then saw that he was writing a book about design.

His book coincidentally came out the same day mine did, but with a very different pricing strategy. Whereas I set a low price and hoped to make up for it with a lot of sales, he set a much higher price even though that might mean a smaller sale volume.

Last week, I explained my pricing strategy in detail on Jason Cohen’s A Smart Bear blog. So this week, Jarrod wrote a counter-point to explain the strong point of his own strategy.

I’ll let you decide for yourself who won the award for Most Successful Design eBook Writer, but one thing that piqued my interest was Amy Hoy‘s intervention in the post’s comments (as well as on Hacker News).

Amy argues for high prices over low for a variety of reasons (and I guess that’s reflected in her own online seminar’s pricing).

Since she’s more Internet Famous than me, I’m going to apply 37Signal’s advice and pick a fight: I believe low prices can be a valid pricing strategy, and that’s why I’m announcing now that my next product (whatever it is) will be priced at $0.99.

If this product is a success, I will have effectively proven for the second time that super-low prices can work.

So I’m counting on you to help me prove that Amy Hoy is wrong, that there’s no right or wrong pricing strategies, and that nobody knows anything.

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