""Where did you come up with the $50 dollars or the price of it? Do you think it's enough? It strikes me that you've got a lot of customers, you're signing people up, but you're not making a profit yet?Well, it's interesting, I think the reason we're not making a profit, is because our past investors put over a million dollars in the FDA studies, we've done a technology upgrade. I think the pricing, actually, is good at this stage, we've got opportunities to increase price, we've got some other features we're working on right now, for example, on the infant product we're also developing what we call the voice assessments, so we're able to discriminate between a baby's cry of pain and no pain, so that's another new feature that can come in and raise prices. But generally, we believe if you look at the market, the aged care market, it's something in the region - the aged care market is worth over $300 million dollars per annum, so we just scratched the surface so far and at that $50 dollar rate, that's a good market.
The infant market at our price, that's more like $10 dollars per month for the infants, so that's a home use product. And we worked out that 1 per cent penetration of the infant market - there's about 150 million kids born to first time parents each year around the world — would give us a similar size of market — 1 per cent of the kids market is the same as the whole of the aged care market. So, these are very, very big valuable markets, we're just starting to know our penetration now.""
The above is an excerpt of that Alan Kohler interview posted by
@Jaliso :
Alan Kohler InterviewI believe PD wants to penetrate the market first, allow the customers to become reliant on the app, and then start to increase price as appropriate. And I agree if that is the strategy. No point pricing something that is prohibitive such that they won't even bother to try.
Personally, at this pricing, it will get PCK to break even. By then, most of the customers would be so reliant on the app that they are very unlikely to want to go back to the pen and paper pain management records. In fact, it would become prohibitively expensive to do so. That is when PCK would probably raise prices. And in that scenario, a price rise will simply increase profit and hopefully dividend
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