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Gold, Music and the Irrationality of Price | The Adaptive Marketer

What would happen if you doubled the price of your products? How about if you increased them five-fold? Would customers still buy them?

This post tells the story of a company that did just that – by accident.

My friend Sean was working at Open Labs, a company in Austin which provided keyboards to studios and musicians, focusing on high-end products. The keyboards they made started around $4K. Some of their customers included Madonna and Justin Timberland.

The company was small, but thriving. They did little to no marketing. Most of their sales resulted from word of mouth.

With their five year anniversary approaching, someone came up with a great idea for a publicity stunt.  As a joke, the company took a picture of one of their standard keyboards, used PhotoShop to make it look as if it were made of gold, and then featured it on their website as their five year anniversary edition. A 24K gold keyboard for $24K sounded very cool, but surely no one would buy it –  or so they thought.

Read complete article here:

Gold, Music and the Irrationality of Price.

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