Wednesday, February 26, 2014

SMS texts are a 6500% markup

This is not a news flash. The articles I just found are all over a couple of years old.

But it doesn't surprise me. The idea of pricing, from a marketing perspective, is to charge for the value you provide, not what it costs you. It's why the only use for cost plus analysis of prices is to gain some idea of if you are slowly going out of business.

And, in most cases the 15c price for a text is only notional these days. Texts are bundled with voice minutes, data and in many cases a cool new handset.

All very straightforward.

- Posted using BlogPress from my iPad

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