Community Pricing

From P2P Foundation
Jump to: navigation, search


Description

Via Boing-Boing:


"Logos Bible Software publishes specialist electronic editions of scholarly works -- they use a "community pricing model" that allows their community of customers to work together to establish the demand for the work and set a fair price for it before it is produced: [1]

- "They also do what they call community pricing, where they don't know how to set the price. Here, they expose the price curve to their users, letting users choose the price they are willing to pay. Once the price crosses the line that allows them to cover their costs, they give that "best price" to their pre-order customers (regardless of which price they actually chose when voting.) They then raise the price to the point on the curve that shows best profit for Logos, for customers who weren't part of the original subscription. In this way, they make money on every product they produce (much like threadless.com, which aggregates demand (but doesn't set pricing) before producing a product.) To me, this is a major trend for the future of manufacturing, but that's another topic...." (http://radar.oreilly.com/archives/2008/02/community-pricing-for-books.html)