Pricing Suggestion

[JeffroK]

I dont see AUD$100 as being too expensive for a finished, quality game.

It is too much for a Beta+ offering which "is still being worked on"

Which category does this fit?

However, Matrix should start permanently dropping prices on some of its 5+ year old titles, to the ?? $20 ?? bracket.

It may bring more to the shop, and they may then buy more of the premium titles. Currently they buy nothing.

[Maesphil74]

ORIGINAL: Aurelian

ORIGINAL: Fleming

ORIGINAL: Aurelian

Took a guick look over at the steel beast forum.

Don't see anyone complaining about the price.

Or saying "But we can buy Microprose's M1 Tank Platoon for x.xx"

Or comparing it to a console or app store game.

never go for a quickie [:-]
http://www.steelbeasts.com/sbforums/sho ... ice&page=2

Ok. And did they lower the price any?

Off course not. Why should they?
They are setting the price to maximise their (short?) term profits.
The people who advocate the lower prices are convinced that profits will benefit in the long run.
We all know economics isn't "excactly" an exact science, so who knows?
Time will tell, I guess.

You really think these companies are in business so they can entertain you.
[:D]
Nope; they're making money. And their prices are not based on the wishes of the customer. They're based on analysis of their market. And that analysis can be either right or wrong.
Who cares really? I don't have any matrix stocks in my portofolio. I just happen to like some of their games. I won't loose any sleep if their analysis is wrong. I just hope for them, it's correct.

It is a problem however if you charge for a Ferrari and then deliver a skoda.
I paid once for a testarossa on this site(aka Command Ops BftB) and was delivered an Octavia. Nice car and all, but that was a bit pricey for what I got compared to what I was promised.
But hey, my fault; I decided to click that 'buy' button.

I was on the fence regarding Command. I must say I'm no longer convinced of the hype. Too much performance problems, weird UI decisions, and too community dependant in the scenario dep.
Off course, this is all from reading the forums as I don't have a demo to base my opinion on.

Oh, well; the lesson learned from BftB has teached me.
Good for me

Maybe I'll pick it up when it goes on sale (for 75 euro [:D])

[thewood1]

Funny...I noticed a couple of the loudest complainers now posting in the Command forum asking questions about how to play.

[Aurelian]

ORIGINAL: Fleming

ORIGINAL: Aurelian

ORIGINAL: Fleming



never go for a quickie [:-]
http://www.steelbeasts.com/sbforums/sho ... ice&page=2

Ok. And did they lower the price any?

Off course not. Why should they?

Exactly. Which shows how effective threads like this are

The people who advocate the lower prices are convinced that profits will benefit in the long run, have come up with *nothing* to show that.

How can they after all?

They haven't provided the market research data.

They haven't provided any data on the profit margin of this company.

They are however, free to put their money where their mouth is and prove that they are right.

[Maesphil74]

ORIGINAL: thewood1

Funny...I noticed a couple of the loudest complainers now posting in the Command forum asking questions about how to play.

You're confused because you think these people are 'complaining' (and watch it; i'm not complaining about the price [:D]) because they cannot afford the game.

While in fact, it's just a psychologial effect of having to pay a lot more for something when normally you pay a lot less (going from 40 euro for a game to 80+ euro).
The fact that even some of the 'complainers' deciced to buy, Is a proof that even when a consumer initially perceives the price as 'too damn high', they still can be lured into a transaction.

That and their conviction the high prices keep the market small. Which isn't necessarly a bad thing for matrix btw.

[Maesphil74]

ORIGINAL: Aurelian

ORIGINAL: Fleming

ORIGINAL: Aurelian





Ok. And did they lower the price any?

Off course not. Why should they?

Exactly. Which shows how effective threads like this are

Well, that's not entirely true.
Matrix probably pays a lot for market analysis and customer polls, etc.
These threads can be a signal that there is a problem in your market and can lead to a more detailed analysis of the problem.
So, it would be foolish to ignore this. And I'm sure they are investigating (or probably allready have).
So, in fact these threads can be effective. Just not in the short term. But maybe for future experiments with price differentiation.

Oh, and btw; care to address the rest of my post? [;)]

[Aurelian]

ORIGINAL: Fleming

ORIGINAL: thewood1

Funny...I noticed a couple of the loudest complainers now posting in the Command forum asking questions about how to play.

You're confused because you think these people are 'complaining' (and watch it; i'm not complaining about the price [:D]) because they cannot afford the game.

While in fact, it's just a psychologial effect of having to pay a lot more for something when normally you pay a lot less (going from 40 euro for a game to 80+ euro).

But where is this 40 euro game that is the same thing as the 80 euro game?

[Maesphil74]

ORIGINAL: Aurelian


Exactly. Which shows how effective threads like this are

The people who advocate the lower prices are convinced that profits will benefit in the long run, have come up with *nothing* to show that.

How can they after all?

They haven't provided the market research data.

They haven't provided any data on the profit margin of this company.

They are however, free to put their money where their mouth is and prove that they are right.

Not convinced. At least that's not what I understood from some of their posts.
However, it is widely known in economics that lowering (or increasing) prices can lead to higher sales volumes and bigger profit.
But I'm sure you know that too.

It aldepends if your strategy is getting a little money out of each member of a large group. Or a lot of money from the members of the little group.


http://www.marketingmo.com/how-to-artic ... e-profits/

[Aurelian]

ORIGINAL: Fleming

ORIGINAL: Aurelian

ORIGINAL: Fleming


Off course not. Why should they?

Exactly. Which shows how effective threads like this are

Well, that's not entirely true.
Matrix probably pays a lot for market analysis and customer polls, etc.
These threads can be a signal that there is a problem in your market and can lead to a more detailed analysis of the problem.
So, it would be foolish to ignore this. And I'm sure they are investigating (or probably allready have).
So, in fact these threads can be effective. Just not in the short term. But maybe for future experiments with price differentiation.

Oh, and btw; care to address the rest of my post? [;)]

No need to address the rest. The only signal this thread send is that there are people who think this game should be the same price as something like Pride of Nations.

Now if they buy Pride of Nations tomorrow for $80 instead of buying it today for $25, they would be on to something.

If they offer something concrete, like market research, profit/loss statements, profit margins, then it would be worthwhile.

But no one I ever knew runs their business based on threads like this.

[Maesphil74]

ORIGINAL: Aurelian

ORIGINAL: Fleming

ORIGINAL: thewood1

Funny...I noticed a couple of the loudest complainers now posting in the Command forum asking questions about how to play.

You're confused because you think these people are 'complaining' (and watch it; i'm not complaining about the price [:D]) because they cannot afford the game.

While in fact, it's just a psychologial effect of having to pay a lot more for something when normally you pay a lot less (going from 40 euro for a game to 80+ euro).

But where is this 40 euro game that is the same thing as the 80 euro game?

You misunderstood.
One of the tools of maximum profit is attracting new customers. If a new gamer comes to this site for the first time, he might be 'shocked' by the high prices. When you're used paying 40 euro for a game and then you discover a site where they ask 80 euro, you're probably scratching your head.
How can a new customer know what the difference is between his usual 40 euro game (take EU4) and the 80 euro game?
He cannot.
It's matrix business model that this new customer will perceive the 80 euro game as far superior to his 40 euro game ("Sure, a Ferrari is better than a skoda, so It costs more").
Good for matrix. I respect their business model.

But again, the problem arises when the Ferrari turns out to be a Skoda.
You gained 1 sale but perhaps lost 5 potential future sales.

But hey, they did the research and they concluded that this way of working would create maximum profit for them.

[Aurelian]

ORIGINAL: Fleming

ORIGINAL: Aurelian


Exactly. Which shows how effective threads like this are

The people who advocate the lower prices are convinced that profits will benefit in the long run, have come up with *nothing* to show that.

How can they after all?

They haven't provided the market research data.

They haven't provided any data on the profit margin of this company.

They are however, free to put their money where their mouth is and prove that they are right.

Not convinced. At least that's not what I understood from some of their posts.
However, it is widely known in economics that lowering (or increasing) prices can lead to higher sales volumes and bigger profit.
But I'm sure you know that too.

It aldepends if your strategy is getting a little money out of each member of a large group. Or a lot of money from the members of the little group.


http://www.marketingmo.com/how-to-artic ... e-profits/

Well I don't expect you to be convinced. But I do expect them to show me that this company is on the wrong path.

And it has yet to happen.

[Maesphil74]

ORIGINAL: Aurelian

ORIGINAL: Fleming

ORIGINAL: Aurelian


Exactly. Which shows how effective threads like this are

The people who advocate the lower prices are convinced that profits will benefit in the long run, have come up with *nothing* to show that.

How can they after all?

They haven't provided the market research data.

They haven't provided any data on the profit margin of this company.

They are however, free to put their money where their mouth is and prove that they are right.

Not convinced. At least that's not what I understood from some of their posts.
However, it is widely known in economics that lowering (or increasing) prices can lead to higher sales volumes and bigger profit.
But I'm sure you know that too.

It aldepends if your strategy is getting a little money out of each member of a large group. Or a lot of money from the members of the little group.


http://www.marketingmo.com/how-to-artic ... e-profits/

Well I don't expect you to be convinced. But I do expect them to show me that this company is on the wrong path.

And it has yet to happen.

Only the market can do that.
And we're all the market [:D]

Both views are perfectly reasonable and legitimate from an economic viewpoint. You will find experts who will say Matrix is right and you will have experts that will 'proof' the low prices is the way to go.
Just don't forget that economics is not excact science: it's subjective and potentially wrong data fed into mathematical formulae....
Not so good [;)]

[Maesphil74]

ORIGINAL: Aurelian

ORIGINAL: Fleming

ORIGINAL: Aurelian




Exactly. Which shows how effective threads like this are

Well, that's not entirely true.
Matrix probably pays a lot for market analysis and customer polls, etc.
These threads can be a signal that there is a problem in your market and can lead to a more detailed analysis of the problem.
So, it would be foolish to ignore this. And I'm sure they are investigating (or probably allready have).
So, in fact these threads can be effective. Just not in the short term. But maybe for future experiments with price differentiation.

Oh, and btw; care to address the rest of my post? [;)]

No need to address the rest. The only signal this thread send is that there are people who think this game should be the same price as something like Pride of Nations.

Now if they buy Pride of Nations tomorrow for $80 instead of buying it today for $25, they would be on to something.

If they offer something concrete, like market research, profit/loss statements, profit margins, then it would be worthwhile.

But no one I ever knew runs their business based on threads like this.

You seem to forget that price must reflect value and that value is subjective.
There are people willing to pay 250 euro for animal farm. And then you will have people who wouldn't buy GTA V for 2.5 euro.

It all boils down to which marketing strategy you use.

And I never said they're running their business on threads like this. That's a simplification.
But I'm sure they use their forum (this thread included) to look for trends/worries/desires/opportunities in their market.

[Aurelian]

ORIGINAL: Fleming

ORIGINAL: Aurelian

ORIGINAL: Fleming



You're confused because you think these people are 'complaining' (and watch it; i'm not complaining about the price [:D]) because they cannot afford the game.

While in fact, it's just a psychologial effect of having to pay a lot more for something when normally you pay a lot less (going from 40 euro for a game to 80+ euro).

But where is this 40 euro game that is the same thing as the 80 euro game?

You misunderstood.
One of the tools of maximum profit is attracting new customers. If a new gamer comes to this site for the first time, he might be 'shocked' by the high prices. When you're used paying 40 euro for a game and then you discover a site where they ask 80 euro, you're probably scratching your head.
How can a new customer know what the difference is between his usual 40 euro game (take EU4) and the 80 euro game?
He cannot.
It's matrix business model that this new customer will perceive the 80 euro game as far superior to his 40 euro game ("Sure, a Ferrari is better than a skoda, so It costs more").
Good for matrix. I respect their business model.

But again, the problem arises when the Ferrari turns out to be a Skoda.
You gained 1 sale but perhaps lost 5 potential future sales.

But hey, they did the research and they concluded that this way of working would create maximum profit for them.

I didn't misunderstand. People who buy the 40 euro Chevy should not be shocked when the Caddy goes for 80 euro.

How can a customer know the difference between the two? Use the internet. You'll be buried under all the details you would find.

As for MG's business model, it worked/s for them. They did all the stuff necessary. They don't just wake up one day and say "We'll charge this."

When McNamara was head of the Ford Division, he had a conversation with Iacocca. "You're very successful at selling to people face to face. But if you can't put it on paper and lay it all out, you haven't thought it out."

Or something to that effect.

That's a problem with forums such as this. There are people who are trying to sell something that says this company doesn't know what it's doing. (face to face part.) But they are not putting it on paper and laying it all out. (The laying it out, which means facts and data.)

[Aurelian]

ORIGINAL: Fleming

ORIGINAL: Aurelian

ORIGINAL: Fleming



Well, that's not entirely true.
Matrix probably pays a lot for market analysis and customer polls, etc.
These threads can be a signal that there is a problem in your market and can lead to a more detailed analysis of the problem.
So, it would be foolish to ignore this. And I'm sure they are investigating (or probably allready have).
So, in fact these threads can be effective. Just not in the short term. But maybe for future experiments with price differentiation.

Oh, and btw; care to address the rest of my post? [;)]

No need to address the rest. The only signal this thread send is that there are people who think this game should be the same price as something like Pride of Nations.

Now if they buy Pride of Nations tomorrow for $80 instead of buying it today for $25, they would be on to something.

If they offer something concrete, like market research, profit/loss statements, profit margins, then it would be worthwhile.

But no one I ever knew runs their business based on threads like this.

You seem to forget that price must reflect value and that value is subjective.
There are people willing to pay 250 euro for animal farm. And then you will have people who wouldn't buy GTA V for 2.5 euro.

It all boils down to which marketing strategy you use.

And I never said they're running their business on threads like this. That's a simplification.
But I'm sure they use their forum (this thread included) to look for trends/worries/desires/opportunities in their market.

Never said you did. Nor have I forgot market value. This particular game sells for what the company determines it's worth.

As for GTA V, doesn't matter to me what they sell it for. Put it a $2.00, I won't buy it as I have no interest in it. If I did, I would buy it now. Just as I bought Madden 25 when it showed up. Have yet to play it yet. (Or WiTP-AE, which I bought the day it came out. Or Rome II. or Shogun II. An no)

[Maesphil74]

I didn't misunderstand. People who buy the 40 euro Chevy should not be shocked when the Caddy goes for 80 euro.

But what if your Caddy drives like a Chevy?

How can a customer know the difference between the two? Use the internet. You'll be buried under all the details you would find.

Be carefull with the 'internets'
http://www.forbes.com/sites/suwcharmana ... tten-core/
The faking of reviews, both positive and negative, is a serious issue. At the core of the problem is the fact that there are huge benefits to behaving unethically but very little cost for those caught doing so

As for MG's business model, it worked/s for them. They did all the stuff necessary. They don't just wake up one day and say "We'll charge this."

Correct 100%.
But a business must remain reactive to changing parameters.

That's a problem with forums such as this. There are people who are trying to sell something that says this company doesn't know what it's doing. (face to face part.) But they are not putting it on paper and laying it all out. (The laying it out, which means facts and data.)

Mmm, maybe. I'm not convinced. Remember that for each poster, there are several lurkers agreeing (positive and negative).
It's not uncommon for businesses to adapt their strategies after consumer feedback.
The problem is that it often only happens when they start losing money, at which time it's often too late.
(And no, I'm not implying this will happen to Matrix in particular)
http://www.infoentrepreneurs.org/en/gui ... rformance/
Asking your customers for feedback on your business' performance will help to identify where improvements can be made to your products or services, your staffing levels or your business procedures.

[Chickenboy]

Hi Guys! I'm late to the conversation telling Matrix how to run their business. What'd I miss? [:)]

[aaatoysandmore]

telling Matrix how to run their business

Just that! hahaha

[aaatoysandmore]

Considering it's opera I can understand going out of business has nothing to do with the old audience it's just old like old classical music or old silent movies nobody but the very old care about it. It's a dying breed wargames and old wargames are not. Do you not still play chess? You must understand just because you see something that needs to be discounted the whole world doesn't. Just because your youngest wargaming friend is 42 doesn't mean the whole worlds wargamers are 42 and above. And to top it off just because you think Matrixgames and Slitherine should lower their prices to YOUR expectations doesn't mean the whole world does. Goes back to that selfish attitude you have you want it your way all the time NOW. lol Ain't gonna happen that way. I'm thankful to say. As for proof of what I say, I was a kid once and I know how I thought and my friends thought about wargaming. Wargaming is a niche market it's not like thier games go flying off the shelves or digital space. My kids and grandkids don't care for them as much as shooters and clicky fest games but a small interest is there because dad and grandad likes them. You can take it for what it's worth I don't care I know I'm right and you're just being selfish. Learn to pay for what you get and if you don't want to pay it treat it like you would any store you go in that you don't agree with the pricing...keep your mouth shut because even though I can't see you 24 hours a day I know you don't tell the store owner how to run his business. :_) If you do then you must not have much of a mouth by now. lol

[Aurelian]

ORIGINAL: Chickenboy

Hi Guys! I'm late to the conversation telling Matrix how to run their business. What'd I miss? [:)]

Nothing.