Great read if you are in the business of making money. Since we launched SyncPad, pricing (for enterprises) has been the most difficult thing to decide.<p>One thing not mentioned is that, even before pricing, is important to define what are you charging for. While in some cases it's easy (Photoshop charge per seat), in other it isn't because there are several variables in the application usage. In our case there are several thing we can charge for: users, concurrent users, concurrent rooms, and length of the meeting. Focusing your pricing on one thing instead of the other could radically change the amount of revenues as well as the perception users have about the price.
While it didn't spoon feed pearls of wisdom as on pricing strategies, it was a fun read, and at the end I was saying something to the effect of... ditto! Pricing's more of an art, as are many things when it comes to running your own shop. Hindsight is always 20/20 and I'm sure for every art, someone's written a book on the scientific approach to it. Ultimately, think, decide & accept your decision. Learn from the past & be happy in knowing that at least you decided for yourself, and then look to the future with optimism!
Regarding the sneaker example, this is an example of a Veblen good, which are bought specifically for the status given to the brand or product:<p><a href="http://en.wikipedia.org/wiki/Veblen_good" rel="nofollow">http://en.wikipedia.org/wiki/Veblen_good</a><p>(There's also Giffen goods, which are similar, but where the lower priced product is inferior. This means that consumers will substitute the product for another if they have the money to do so.)