Variable Pricing Hurts Sales Rankings

[Jeff Campbell]

<div class='os_post_top_link'><a href='http://feedproxy.google.com/~r/feedburner/Ylew/~3/xhoGpdf1yEs/' target='_blank'>http://feedproxy.google.com/~r/feed...~3/xhoGpdf1yEs/</a><br /><br /></div><p><em>"Two days after the Apple iTunes Music Store raised prices on some individual tracks, there was evidence the increases have hurt the sales rankings of songs given the higher $1.29 price," Glenn Peoples reports for Billboard. "On Wednesday, one day after the price increase, the iTunes Top 100 chart had 40 songs priced at $1.29 and 60 with the original $0.99 price point. The $1.29 songs lost an average of 5.3 places on the chart while the $0.99 songs gained an average of 2.5 chart positions," Peoples reports."</em></p><p><em><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1239147286.usr105634.jpg" /></em></p><p>Just proves the point that when you increase price, demand will go down and vice versa. I think I learned this in economics. If this continues, the record labels might not like this tiered pricing after all.&nbsp;</p>

[doogald]

If reducing by 5.3 places means a drop in revenue of more than 30%, they probably are regretting it. If it is less than 30%, they are probably crying all the way to the bank.