→ An Analysis of “Raise Your Prices”

Another really smart piece over at Clark’s Tech Blog:

So we have a broad market and the traditional solutions don’t seem to work. Simply saying, “raise your prices,” really doesn’t cut it. The current iOS marketplace (and probably a growing percent of the MAS) depend upon people trying by buying. That is your revenue is subsidized by people who purchase but never really use your software. Once you raise your prices you lose a lot of that subsidy. Which means you really need to have a solid understanding of your market, your users, and how to get them. That’s not at all easy.

Having a solid understanding of your market has always been important in business. Now, in this application environment and in this economy, it is crucial.