Adoption Curve

There's a curve for adoption.

Innovators adopt technology first, then early adopters, followed by the early majority.  On the back end are the late majority and finally the laggards.

You can price your products according to this curve. Innovators and early adopters are your beta testers so you can charge them less. They're paying with feedback, reviews, credibility. As your product gets more mainstream, you can raise the price.  Late-comers pay more and the product they get is more refined.

This makes pricing a little easier to think about.  You're always going to raise prices and you want to reward your beta testers, so start low and raise as you add value.

https://commoncog.com/dont-read-history-for-lessons/

Semiconducters used to have high initial prices to pay back high capex.  But improvement rate is the highest when there's high throughput.  So TI lowered prices to have higher volume so that improvements happened which raised margins.

‘learning curve pricing’ (in Chang’s own words) or ‘experience curve pricing’ (in BCG’s words