I think product continuous development is being used by most of the companies these days. If you look at the mobile industry, any new product is simply an upgrade of the already existing product. They just add a few features and the quality of the product is much higher. It is however a shame how freemium pricing is being widely used. Most of the apps and software these days are purported to be free but after downloading them, you have to pay a premium to access the advanced features. You get the application free, but you pay to use it.

Again, the idea of selling a lowly priced product but charging a premium for must have accessories is also very disheartening. You buy an ink cartridge at an almost the same price as the printer. I think the ideal price of any price elastic product should be the magic price. Let the market demand and supply forces decide the price.  The price inelastic products can be controlled by the Government to protect the consumer from being overcharged. If companies disclose the full cost of production, the relevant government agency considering the value to the consumer can then decide the ideal market price.

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