Quote:
Originally Posted by Max Gutnik
Customers do not determine a product's "intrinsic value". The intrinsic value of a product is determined by the process of making the product and the costs associated with said process. In other words, only the supplier can determine the intrinsic value and this value has nothing to do with what a customer thinks a loaf of bread is worth in the grocery store.
The "perceived value" that you refer to, is determined by the laws of supply and demand. Individual customer perceptions are only a small part of this equation, but lets not take this thread any further off topic.  |
Now about supply and demand, it has to be different when downloadable software is involved than when actual physical merchandise is involved, no? Now you guys will know more than me on this, but wouldn't it be better with something like software to sell for a little less and sell more? It's not like where with a physical product you sell, run out, and have to spend money to re-up. With software, you develop it, perfect it, put it out and you can sell an infinite amount of it and it won't cost you anything extra after R&D to keep resupplying it; other than whatever it costs to run your servers. Hope I'm making sense, but I would think that you can sell for a little less, and sure you may not make as much per sale, but you'd sell so much more quantity that you'd make everything back and more.
I'm just saying, studios aren't making as much money anymore. Everyone and there mama is an engineer or hotshot producer. Most of us have had to lower prices and make special package deals to try to keep getting new clients in the door. And here Avid goes making two significant price increases in a 12 month span. Just doesn't seem beneficial to your customer satisfaction index or approval rating.
With the iLok in place now, you guys are gonna make your money. You can't just give a copy of Pro Tools 7.4 or 8 to your homeboy with an Mbox anymore. If he want's the newer version he has to buy it. So I don't see the need for such drastic price increases for something you can sell an infinite amount of. I'm not saying sell it dirt cheap. But for $199 at maximum, I'd gladly take a copy of 10 off of your hands. Throw in Disk Cache with native and I'd gladly give you the $299 you're asking, possibly even $349.