Marketing Idea No. 46 – Sell initial products at low price and make money in upgrades

Here’s a selling formula that works miracle

1. Sell the initial products at a very low price (But not for free. That would not work)

2. Get the customers “habituated’ with your product. So that when the time comes for replacing / upgrading your product, he feels compelled to stick with you

3. Set a high price for the replacements, supplements and upgrades of that product, skim the market and make money.

This is a formula made world famous by PC industry. But it works for most of the technology companies, as well as non-technical ones. And much to the delight of manufacturers, it really makes a lot of business sense and keeps the cash registrar ringing.

One note of caution – Dont give your product away. The product that is available for free for customers does not create any emotional attachment. So he can replace it without much heartbreak.

1 Comment
  1. Debasish Shikder 14 years ago
    Reply

    what happened in bangladesh telecom industry specially in the mobile phone industry. What was the launching price of citycell and grameen phone. Now grameen phone is the greatest success of brand in the country.

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