Who needs a sale?


I would expect that most of the Product managers that read this blog don’t put their products on sale very often, if ever (what sales people do is another issue). But today Amazon cut the price of their S3 storage service. I’ve reviewed a few price lists in my time and I can’t think of a single time I cut prices. So is the S3 Product Manager a genius or a fool?

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2 responses to “Who needs a sale?

  1. Ethan,

    Storage prices have been dropping steadily for a long time. I can buy a 1TB external drive for under $200. 5 years ago, I couldn’t get that for $2000.

    I think it is a sign of the time. And note that it is for companies with at leat 50TB of data, which is not a small amount by any means.

    My view, it’s simply the nature of the storage market.

  2. Cost of data Storage also follows Moore’s law, so any wise product manager will have to build in a planned price drops in a phased manner. Electronics industry thrives on this sliding priceline business. So a good product manager will have the price drops builtin to the business model and also increase the storage performance over a period of time – and make profits.