On May 14, 2007, at 2:47 PM, Bob Keeney wrote: >> If you (the plugin developer) are happy setting your prices very high >> and selling only one a week, then by all means do so. The problem is >> that products that are priced too high attract lower-priced >> competition. Eventually, you will find yourself not selling >> anything. > > I strongly disagree with this stance! The opposite is true. >
I don't understand. Would you clarify what the "opposite" is? > If I can buy the entire Einhugur package for $100 per year then > there's NO WAY for another developer to undercut that market. It > would be suicide. Why buy mine when you can buy his for that little? > > But, if that price is instead $100 PER CONTROL then I *might* be able > to enter the market assuming my control is as good or better. > Developers have to make a living off their wares. As far as I know, > neither MonkeyBread nor Einhugur are full time RB developers. > The core problem is not the price of the plugins; the problem is that there are not enough buyers. Increasing the price of the plugins is not going to cause buyers to appear. In fact, I believe the opposite is true. The only "fix" for low RB plugin prices is more RB users. Now, developers *can* raise their prices if they are content to move fewer units. But I think that plugin prices are elastic; a 10% increase in prices is probably going to cause a higher than 10% drop in units moved. Messing with the price too much can cause your revenue to actually decrease... > I also think you misunderstand how markets work. In my experience > the higher the price the more the perceived value. A Toyota and > Lexus are both very nice vehicles. But can you honestly say that the > Lexus that is twice as expensive has twice the value? Why buy a Mac > for $1300 when you can get a Windows PC for $600? They both do the > same thing. > Supply and demand set *market* prices. The demand for a Lexus is strong and the supply is constricted. Thus, a high price results. The demand for a Toyota is moderate, but supply is good. An "average" price results. (I am being generic here.) Unfortunately, the demand for RB plugins is not strong --- prices stay low. > Obviously there's a limit to higher prices/perceived value but the > point is that low prices for software and/or services stifles > competition. I believe it's called the barrier to entry. It is true: unprofitable markets do not attract new business. ----------------- Russ Tyndall Wake Forest, NC _______________________________________________ Unsubscribe or switch delivery mode: <http://www.realsoftware.com/support/listmanager/> Search the archives: <http://support.realsoftware.com/listarchives/lists.html>
