Make It Easy for People to Give You Their Money

John Gruber, reflecting on the New York Times’s subscription pricing:

The decision to purchase and the act of paying are part of the experience for any product or service, and should be designed accordingly.

Not paying is always simple.

Make purchasing something easy, simple, and understandable. Help me figure out exactly what I’m paying for and how much it’s going to cost me over a specific amount of time (or forever). If you can’t do that, I’m probably not going to give you my money unless it’s something I’ve decided I can’t live without.

3DS To Cost $249-$299?

Lazard Capital analyst Colin Sebastian:

“We expect a late 2010 launch of the 3DS in Japan, followed by March 2011 in North America, with a price point in the $249-$299 range.”

That’s pretty funny. I highly doubt Nintendo holds any illusions that they’d be able to sell people on a new DS that cost that much more than the old ones. There are patterns to follow, just like with iPod/iPhone pricing: this will enter the market at $199, tops.

(via E32010: 3DS To Cost $249-$299? | Edge Online.)

Once Again, It Comes Down to Value

Electronic Cottage reports that there’s a small-scale user revolt boycotting Kindle titles that are priced higher than the new release and/or bestseller $9.99 price point:

Now, Amazon has many books over the $9.99 price it promised for new releases when Kindle was first launched. That price was a major selling point to convince buyers that the large investment in a Kindle would pay off over time. The price also acknowledged the obvious: a Kindle edition is less valuable than a hardcover; although you cannot pass along your Kindle edition to friends, you are at least paying a significant amount less than the hardcover price. Unfortunately, short-sighted publishers feel they are losing dollars instead of realizing that a $9.99 Kindle sale doesn’t usurp a hardcover sale. It is a brand new entity. A plus. Pure gravy.

Kindle owners have organized a boycott of Kindle editions over $9.99. The uprising is ably helped by Amazon’s own online tools: the 9.99boycott community and a boycott discussion forum. Cleverly, the boycotters are using the Amazon tags feature to tag books over $9.99 with the 9.99boycott tag. Boy, if I were a publisher or author, I sure wouldn’t want to see my books listed at the top of the tag’s “Popular Products” under the boycott tag.

Interesting that part of the article here is that Amazon has provided customers with all the tools they need to create an uprising within their own service. Pay attention to the number of books the author says he purchased at the lower $9.99 price point. Like iPhone applications, there appears to already be a price ceiling forming with the Kindle.

I don’t think this is what Amazon was going for, nor do I think they promised everyone $9.99 books, but (again) like the App Store, the customer base is showing what they’re willing to pay.

(Via Tools of Change for Publishing.)

eBook Prices versus Print Prices – Are They Too High?

Are eBook prices edging a little too high for people’s comfort? Josh Quittner writes in Time:

If only the Kindle 2 were cheaper! Despite its other shortcomings, Amazon’s new and improved digital-book reading device does enough right that it could become the Model T of e-readers, capturing the imagination–and discretionary spending–of the masses. But in this wretched economy, in which most of us will purchase only nonessentials that save us money or make us money, I doubt folks will pony up $359 for a pleasure-reading gadget. And thanks to Amazon’s mysterious pricing policies, the old argument–that digital books are so much cheaper than their hide-bound ancestors–no longer holds.

Before a recent visit to my dear old mum, I purchased The Kindly Ones, by Jonathan Littell, a 992-page Nazi-palooza that, given the nearly 3-lb. weight of the new English translation, makes for an ideal Kindle selection. But when I got ready to buy it on Amazon, I blanched at the $16.19 price. Every Kindle text I’ve purchased since Amazon started selling the device in November 2007 has been $9.99. Indeed, that was one of the Kindle’s main draws: you could buy books wirelessly, on demand and at a fraction of the cost of their printed peers. Case in point: Littell’s book was listed in Amazon’s Kindle store with a hardcover price of $29.99, making the digital version seem like a real bargain. But later I discovered that Amazon’s bookstore was selling the new hardcover for $17.99. So the Kindle saved me all of $1.80. Big whoop.

Customers aren’t stupid. They realize that an eBook like that on the Kindle or on other electronic bookstores doesn’t cost as much to print, warehouse, or to distribute—because those things don’t cost anything. Quittner himself writes about an “old argument” that “digital books are… cheaper” than print pieces. A lot of people are used to purchasing a large portion of their books at the $9.99 price point on Kindle, because that’s an automatic discount applied to both new titles and to titles on the NYT bestseller list.

What shows the intelligence of the customer is that I don’t recall any publisher ever saying in public that eBooks would be less expensive than print ones. Amazon makes a big to-do about the $9.99 price point, enough so that Quittner believes in his article that Amazon is also the one who set the list price for the book he was trying to buy. (This is not true; list prices are set by publishers; Amazon decides what the sale price is, at least when it comes to Kindle titles. I don’t know how the print side of things works.) Customers are intuiting that digital books should not cost as much as print ones.

I ran into this myself just a few days ago. Now having the Kindle app for iPhone, I went to look at a few books to see if I wanted to buy anything. I landed on a book that in print is a mass market paperback. Its Kindle price? $7.99—identical to the pricing of the hard copy version. I don’t think I need to write long on how quickly that decision was made for me.

Companies—and this is not limited to publishers—are underestimating the human desire to own physical objects. To many people (and at least to me), physical ownership of a piece of property, such as a DVD on which a video game is coded, or a stack of paper on which words are printed, is more valuable than a collection of bits that make up even a functionally equivalent electronic version of the same product. In addition, I have more control over the physical piece of property, especially when DRM enters the picture on electronic files and I’m being told what I can and can’t do with it.

What do you think? When you have a choice, which one would you buy? Would you buy both? What do you expect to pay for it?

Discuss, and feel free to answer the poll in the sidebar.