Is there anyone who isn't upset by that?
By lowering the price for an entry version, customers who otherwise couldn’t afford the full version still get the option to use a feature reduced version.
(See how I framed that?)
The former Microsoft Excel Program Manager explains it well:
https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...
> this business about segmenting? It pisses the heck off of people.
> People want to feel they’re paying a fair price. They don’t want to think they’re paying extra just because they’re not clever enough to find the magic coupon code.
> God help you if an A-list blogger finds out that your premium printer is identical to the cheap printer, with the speed inhibitor turned off.
> So, while segmenting can be a useful tool to “capture consumer surplus,” it can have significant negative implications for the long term image of your product.
> Even assuming you’re willing to deal with a long-term erosion of customer goodwill caused by blatant price discrimination, segmentation is just not that easy to pull off. First of all, as soon as your customers find out you’re doing it, they’ll lie about who they are
> If your customers talk amongst themselves, they’re going to find out about the price you’re offering the other people, and you’ll find yourself forced to match the lowest prices for everyone.
So, no, I don't think there are a lot of people upset that there exists an Office product they can afford.
https://www.joelonsoftware.com/2004/12/15/camels-and-rubber-...
> this business about segmenting? It pisses the heck off of people.
> People want to feel they’re paying a fair price. They don’t want to think they’re paying extra just because they’re not clever enough to find the magic coupon code.
I don't know a single normal person who's ever bought Office anyway. Their real customers are corporations, since they have money and can actually be sued for copyright infringement if they use Office without licensing it. Microsoft should simply give it away to normal people and charge corporations for it.
Mind sharing the development & support cost numbers, and the sale numbers for the Office suite that you're basing that statement on? If not, maybe a Fermi calculation to show that it's a reasonable statement?