

Easy Way To Increase Profits From Mwo
#1
Posted 02 October 2013 - 09:47 AM
#2
Posted 08 October 2013 - 05:26 AM
i can't agree that "too expensive!" hero 'mech are exactly "ridiculous" fact.
Why?
Here's a short story: two rich guys meet each other wearing very same ties, very expensive ones. One says: "ah, look, a good tie, my friend! I bought mine on the corner of 53rd and 5th, paid 5 thousand for it!" And the other says: "oh, dude, how unlucky, you were cheaped! I bought mine in its maker's boutique, and it costs 10 thousands there!" - to which the 1st one says: "Damn you, couldn't you tell me yesterday!? Shame on me...".
In other words, whatever is sold overpriced - comes with a rights to proudly waive one's ability/desire/decision to buy it nonetheless (whatever the reasons to do so are).
The worst thing you could do to thousands of Hero 'Mech owners now - is to drop prices of Hero 'mech they already bought (without giving them proporionally large compensation, at least). It'd hurt them. So you see, it ain't so easy. Myself, yes, i think prices are too high; i bought just one, and i don't plan to buy another. I couldn't play more than one at once, and should they be, say, ~2 times cheaper, i probably would get 3 of them, not just 1 - which would be more money spent in total. But since those prices are existing for (relatively) long time now, i'd rather see them stay as they are.
If to reduce prices, then at least it must be done very gradually, step by little step, over long enough time (say, at least a year), i think. Not in a single giant drop.
#3
Posted 08 October 2013 - 04:04 PM
FinsT, on 08 October 2013 - 05:26 AM, said:
That won't be a problem when the MC spending gets reset at launch.
Oh...
#5
Posted 09 October 2013 - 01:10 AM
You are not their target audience.
#7
Posted 09 October 2013 - 08:27 AM
John Branon, on 09 October 2013 - 02:12 AM, said:
That is exactly his point: Increase of income by broadening of target audience.
Increasing Income and Increasing Sales are very different things.
If they drop the price by 50% to sell double the mechs, they have mathematically done nothing to bring in more money.
Simple example:
If I sell 100 mechs @ $50 each, I have only made $5000.
But if I sell 500 Mechs @ $10 each, I have also only made $5000.
However, if I sell 100 mechs @ $50 each, + an additional 400 mechs @ $10 each (by putting them on sale later), I have now made $9000.
This is an oversimplified explanation, but it gets the point across.
Edited by Syllogy, 09 October 2013 - 08:51 AM.
#8
Posted 09 October 2013 - 08:46 AM
PGI is a company that does a good job of start high because there are always people that want a product on release then put the same item on sale later for those that are more frugal.
Have a look at this info put together by Kitk http://mwomercs.com/...35#entry1590335
Assuming buying the $50 MC package or above you'll see that for the most part if you wait for the mech to go on 30% off all except the assault heros fall in the $10-15 price range, some lower.
If it ever get's to a point where PGI isn't selling enough MC/heroes they won't go back and change the starting price of the heroes, but you'll probably start to see 50% sales. One thing to note according to PGI the Ilya is the most popular hero mech...it went on sale two times within a 6-8 week period.
#9
Posted 09 October 2013 - 08:47 AM
Edited by Claive, 09 October 2013 - 08:47 AM.
#11
Posted 09 October 2013 - 11:50 AM
Syllogy, on 09 October 2013 - 08:27 AM, said:
Increasing Income and Increasing Sales are very different things.
If they drop the price by 50% to sell double the mechs, they have mathematically done nothing to bring in more money.
[...]
This is an oversimplified explanation, but it gets the point across.
I understand, though given the current price level it's not unreasonable to expect that the increase in sales would surpass the decrease in prices.
If you drop the price to 25% but your sales increase to 10 times what they were, you made a lot of money.
Gtbuck, on 09 October 2013 - 08:46 AM, said:
Thats a bit of an oversimplification, though you probably are aware of that.
Generally, you are not looking for the highest price at wich you can find a reasonable amount of buyers. You are looking for the sweet spot where the combination of price and demand yield the most profit.
In this case of virtual goods profit is maximal when revenue is maximal.
http://en.wikipedia....Optimal_pricing
#12
Posted 10 October 2013 - 10:12 AM
People are funny that way. If something is to cheap or Free, there is likely a good reason. Something is wrong with it, whether there actually is or not. So Cheap stuff does not always sell as one might think. True quality always has a higher price than Cheap.

Edited by Almond Brown, 10 October 2013 - 10:13 AM.
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