I ordered a Fon router when they dropped the price to 19$ from the usual 25$, to try the service and see how it performs. My feelings right now are mixed, as had I waited one day, I could have purchased it for 4$.
This ‘rubbery price’ approach was explained a few days ago in Martin Varsavsky’s blog, as a demand elasticity test. Basically, you drop the price, and see if hordes of people jump on the offer. Yesterday, after having been back at 25$ for a few days, they changed the price to 1$, but only for a few hours.
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