Re: Tierred pricing (was Tiger tools...)

[rob@xxxxxxxxx]

<snip>
We discovered a strange phenomenon - we charge half as much for
our product which is more capable than the competitors - but we
find that prospects then assume our product isn't as good, or we
wouldn't charge less for it. The problem is that when people
don't know the brand, they use price as a predictor of value. So
much for being a nice guy.
<endsnip>

Years ago we purchased a major accounting package.  They were close to
another package but we chose them because the other package wasn't good
enough to justify the huge disparity in price.  Our vendor shortly raised
their price to increase sales.  We told them if they had tried that with us
we would have went with the other company.

Rob Berendt

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