Pricing of Products... and how it affects diffusion

Pricing of Products... and how it affects diffusion

• 2.28.2010

I was at the gym the other day and I saw this girl working out in those special foot gloves. The technical name is called "Five Fingers". I have seen these around a few times now - and to be honest, I'm still a little weirded out by the whole concept.... but I'd be willing to try it..... but for free.

 

 Actually, I'd love to try it ... but the going rate for these suckers starts at $75. I can't afford to "try" things at that rate. If you find yourselves swimming in cash money, here is a link to a pair on Amazon:Vibram Five Fingers Women's KSO 

Another product that I think I would really enjoy, but again have been held back by the investment, is the Kindle. I think at this point, we all know what a Kindle is ... and I think I would really like one, especially given the potential travel that will come with a post-MBA job.

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In my Technology and Innovation class, one of my classmates mentioned an article from CNN Money referencing a study by the Yankee Group regarding the optimum price point for an e-reader. The sweet spot? $150. Which is a pretty big difference from where the Kindle is priced. Personally, I think my price point would max out at $175 (pre iPad announcement). Given the introduction of the iPad to the marketplace, I think that would still be about right .... Although personally, I'm still hoping this comes true: Amazon wants to give a free kindle to all Amazon Prime Subscribers

So while there are many products I'd love to try, these are two on my list right now :) Perhaps, some day the price point will be a bit lower and more people (myself included) will be willing to buy into the hype.