Making physical products is really expensive. Making more variations of physical products is also really expensive. The ideal situation is where you make as many things as you can, but as few different things as you can, and everyone who's willing to pay more than production cost forks over "as much money as they're willing".
But in reality, nobody's going to voluntarily pay more, so you end up doing this weird marketing dance where you're giving people incremental improvements for a lot more money.
'via Blog this'