It’s late on Saturday night.
I’ve been reading about a few more ‘million dollar’ launches.
My thoughts turned to an interesting perspective.
In some parts of the world, a thousand dollars is BIG money. A child’s life can be saved by a heart operation that costs $3,000.
In other places, the same $3,000 would barely feed and clothe a family for a month. And a few folks would blow that amount away on a dinner party.
For many years, I have enjoyed the leverage and arbitrage of earning in dollars and spending in rupees - which gives me the benefit of a 40x to 45x multiple for earnings.
And so, maybe as a ‘disadvantage’, I have never been enamored about going after 6-figure - or higher - launch roll-outs.
It has also been easier for me to empathize with people who think long and hard about making a buying decision on a $10 ebook or $19.95 program.
And I’ve found it harder to price my own products at a high dollar figure.
I cringe when I hear about trusting folks getting scammed out of multi-thousand dollar investments.
I thrill with those who are ecstatic over HUGE pay-days of $10,000 - or even $1,000.
I wince when I see price-tags on information products that have 4 digits, or five.
I wonder what drives the people who sell them - and the ones that buy.
Especially when the person in either camp comes from the ‘wrong’ group - like a buyer who pays for a high-ticket (US dollars) program… in rupees.
Or a seller who collects payment in dollars, and targets this buyer.
Do they take the buyer’s circumstances into consideration?
Print book publishers do, y’know. Indian editions of even best-sellers are not priced at $19.95. They are at Rs.200 or Rs.300 (that’s $5 to $7 apiece).
If manufacturers of physically delivered products, that have a hard cost attached to creation, work this way, how is it that vendors of digital goods (with ZERO incremental cost for creation/publishing) justify ‘universally identical’ pricing?
Savvy marketers might argue it is ‘intelligent’ pricing strategy - and is based on what the market will bear.
Being on the lee-ward side of the dollar-rupee exchange deal, I see it differently. The financial strain on, say, an Indian buyer charged US dollar prices is MANY TIMES higher than the same pricing on, for instance, a buyer who lives in the US.
So does it really matter if you make (or spend) millions, or thousands, or just hundreds?
When hundreds can mean wealth, are millions really a worthy goal?
Or even a necessary one?
What do you think?











5 Comments Received
January 20th, 2008 @3:48 am
There’s actually a fair amount of arbitrage that occurs in college textbooks due to the pricing shift. College students in the US can buy Indian market versions of US textbooks, and except for “International Edition” on the cover, the books are the same… that and the price, which is usually 90% cheaper.
January 20th, 2008 @5:08 am
In the flat world today, all the barriers will fall.
Americans gripe that there are jobs moving overseas.. but the flip side is a burgeoning middle class in Asia.
I’d much rather see people in India make 40x than try to get by on 1/40th of what we have here in the US.
One way or the other.. it has to even out over time. The trend is inevitable
January 20th, 2008 @8:53 am
A Toyota car is expensive for an ordinary employee who makes minimum wage each month.
A Toyota car is cheap for a company president who makes 20 times more than an ordinary employee.
It all depends on how you look at things.
If you think hundreds is wealthy enough for you, then there’s a big possibility that you can’t even think of a million dollar goal.
January 20th, 2008 @10:54 am
@Kidblogger: If hundreds make me wealthy, is there a REASON why I should think of a ‘million dollar goal’?
Dr.Mani
January 25th, 2008 @6:48 pm
Dr. mani,
I really feel what you are saying.
I run my online businesses from Nigeria and I always wonder when people have to pay tens of thousands of Naira for stuffs that cost less than $50.
For the high-priced products, it is a no-go area because you will need to fork out close to hundred thousand to get any of them.
I got a check in the hundreds from Google and when I converted it, it was a little close to a hundred over here. I was amazed at the gap.
Keep up sensitizing the Internet Marketing world man.
Love you.
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