One way to create a huge new market – with a different type of customer, only able or willing to pay a much lower price – is to simplify your product so that it is much easier and cheaper to make, and hence sell. In order to price-simplify, you need to reduce the price by at least 50 per cent. This does not need to happen all at once, but you need to continue cutting costs and prices each year – by about 10 per cent a year.
