There was much derision when Apple’s polishing cloth, costing US$19, was unveiled. The price seems extortionate for such an item. However, there is a theory behind the price point that the company uses for a range products.
Apple’s US$19 Polishing Cloth Hits Pricing Sweet Spot
A US$19 price point is regularly used by Apple for its accessories. Gene Munster, managing partner at venture-capital firm Loup Ventures, told The Wall Street Journal‘s Dalvin Brown:
When you go below $20, those people don’t think twice about it, even if [the item] could be competitively priced at $1.
It also hits a sweet-spot of not being too cheap either. “At $19, you get the charm-pricing benefits, but it also sends the signal that this is a premium product,” explained Abir Syed, partner at e-commerce consulting firm UpCounting.
No wonder that when I checked the Apple Store online, the polishing cloth had a shipping time of six to eight weeks…