I came across an interesting blog post today by a software developer based out of NYC called Joel Spolsky. He talks about a recent statement by EMI boss-man Alain Levy who says that iTunes is going to begin selling older (less popular) songs for less money and recent big hits for more money. Joel’s argument is interesting and comes back to something I was taught a while ago. Basically he says that when items are less expensive you consider them to be of lower quality and value. Therefore people tend to stay away from the cheap stuff and by the premium material more willingly. Its an interesting argument and one I have debated on with a number of people when trying to decide what price to offer a product for.
I have always been one for offering products for free and building a community around them so that you can find out what your users really want and then charge for them for what they really want/need. However, the opposing side would say that you will have trouble attracting enough people to build a community for a free product because people will consider it less valuable. It’s an interesting debate and a very interesting quick read. I suggest everyone take a look at this one and let me know your thoughts in the comments section. Here is the article.