Maybe this (price insensitivity) is true of the 'general public' (whomever THEY may be) who buy 8-10 recordings a year or something, but I doubt it's true of very many folks like myself who actually buy serious amounts of music. 
If I've got $20 I can afford to spend, chances are I'm going to buy the 2 $10 recordings instead of the single $20 one. Of course, if it's Bird or Duke or Jimi and quite a few others, I need to hear it now unless I know that by doing so I am getting completely ripped off, thereby 'proving' the point I'm rejecting. For the few for whom money is not an issue, maybe lower prices don't matter, but it seems to me that any serious buyer of music with a low or fixed income such as myself would welcome lower prices as a way by which they can get more music for their bucks. I never 'take a chance' on music I have never heard if I know it is overpriced. Seems to me the difference is the difference between what people will tolerate and what people actually want - sometimes that can be a pretty big gap. 

--- On Thu, 2/12/09, Bob Olhsson <[log in to unmask]> wrote:

From: Bob Olhsson <[log in to unmask]>
Subject: Re: [ARSCLIST] Good idea, dumb business model so far -- soapbox
To: [log in to unmask]
Date: Thursday, February 12, 2009, 10:02 AM

> -----Original Message-----
> From Tom Fine: ...the business model is dumb due to obviously too-high
> pricing.

The tech sector press keeps repeating this mantra yet the fact remains that
there is simply no evidence I'm aware of that reducing the price of
recordings increases sales volume. It isn't like this hasn't been tried
both retail stores and labels.

If you ask people what they think, they'll tell you everything on the
is overpriced but when they actually want a recording bad enough to reach
for their wallet, the argument falls apart in the real world of commerce. In
fact most stores sell budget classics for a dollar ABOVE list price!

Bob Olhsson Audio Mastery, Nashville TN
Mastering, Audio for Picture, Mix Evaluation and Quality Control
Over 40 years making people sound better than they ever imagined!