On Wednesday, October 1, 2014 10:07:17 PM UTC-7, Eric Greenwell wrote:

If they made the other 90% pay for it, they'd only have to charge
everyone $5.40 to make the same amount of money. And, no irritated
customers, either. They are probably smart enough to know that, so
perhaps there are other factors, or a higher percentage taking it.


Eric Greenwell - Washington State, USA (change ".netto" to ".us" to


In a bundle like PF Core vs unbundled PF Core Pure you need to look at whether the price elasticities for the features are positively correlated, negatively correlated, or uncorrelated. As you point out it's more subtle than charge $54 vs. $5.40 for a single feature. Part of the idea is to establish the value of the bundle as at least as good a deal as rolling up the individual features, otherwise everyone would buy the minimum configuration plus the individual features they want, which erodes overall revenues. Then you can serve the different market segments at prices they are willing to pay.