additionally, a large part of the problem stems from economic scarcity. digital goods are infinite while the cup of coffee at [insert your local non-starbucks coffee shop here] is a finite good.
when the average marginal cost drops to zero (due to all the usual bootstrapping-style content here on hn), so does the average price -- artificial scarcity won't alter that fact in the consumer's mind. so, it's really the value you perceive as coming from your infinite good that actually drives things like app pricing.
if the average price of an app is free and people are willing to pay $0.99 for your app, well, that's what it's worth. if you're not happy with that, push up the price and test out what the market will actually bear.
when the average marginal cost drops to zero (due to all the usual bootstrapping-style content here on hn), so does the average price -- artificial scarcity won't alter that fact in the consumer's mind. so, it's really the value you perceive as coming from your infinite good that actually drives things like app pricing.
if the average price of an app is free and people are willing to pay $0.99 for your app, well, that's what it's worth. if you're not happy with that, push up the price and test out what the market will actually bear.
m3mnoch.