

People don’t understand how segmentation works - mijustin
http://productpeople.tv/2013/01/02/sacha-greif-part1/

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mijustin
Sacha Greif recently shared his thoughts on pricing ebooks in this podcast
interview.

There have been a few high-profile designers and developers releasing ebooks,
and ebook packages (PDF + videos + resources). The most recent example was
Nathan Barry who had 4 packages: $39, $99, $249, $999
<http://nathanbarry.com/webapps/>

When asked about the criticism Nathan received about his pricing strategy,
Sacha had this to say:

"People don't understand how segmentation works. If you want to buy a car, you
could buy a Ferrari or a Honda. You know those two cars are for different
audiences. No one complains about the price of Ferraris; people understand
that they are expensive. It's the same with ebooks; just like you can buy a
cheap car or expensive car, you can buy a cheap [ebook] package or expensive
package. If you think the expensive package is too expensive, it just means
you are not the target audience. People think it's crazy that Nathan Barry is
charging $200 for his ebook package; but they're not the target audience. He
doesn't want you [the individual] to pay that; but rather the office manager
at the big company, who isn't spending his own money."

