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A cup of coffee can only be consumed by a person, or maybe another splitting it. A digital offering can be copied for almost no cost.

This is why Bill Gates is rich. You pay to write the software, then you sell it over and over and over again with little cost to you. You can't do that with coffee.

So I see the low price of apps to be more indicative of this advantage being shared with the buyers rather than it indicating the app is worth less to a person than a cup of coffee.

You can have a successful app business selling at very low prices because if it becomes a hit you will still make a lot. And being cheap helps you become a hit. So everyone does it and you have to compete with those people doing it.



Howard Schultz did pretty well selling coffee.




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