TheGregzilla wrote:So what your basically saying, is everyone should be punished if a few idiots are willing to pay more for a game rather than 'wait it out for the price to drop'?
Huh?
I said:
"If your question is "Where can I get Turtles in Time for somewhere between $5.00-$10.00usd?" then I would suggest places where you think you could make a find. E-bay isn't your best friend for buying older games these days. Post a WTB Thread in the forum and you never know what deal you'll make.
Also thrift stores, Salvation Army, Goodwill, Flea Markets, and Garage Sales (I almost typed "Garage Sails" and I'm totally going to use that as a premise for a joke), are all places where you might find rare games for pennies on the dollar.
And instead of arguing about supply and demand, you should ask "What are twenty great snes games for about five bucks a pop?". This community is great with suggestions."
I didn't say anything about "punishment" nor "idiots", but I'm starting to consider it.
I should really charge you and all who read for this lesson, but just thank me later and I'll call it even.
Pricing Strategy 101:
Say I own a company that sells, I don't know. Let's say yarn and only yarn. Now I know for a fact that each skein of yarn costs me $0.83usd to manufacture. I know my overhead and all expenses that come with selling the yarn down to the cent.
What is my yarn worth?
Well, my numbers say I can generate a comfortable profit if I sell it at $1.50usd a skein.
But what is my yarn worth?
My competitors are selling a similar yarn at $1.25usd a skein. That could hurt sales.
Seriously, what is the yarn worth?
Our yarns are acrylic, and a lot of people want 100% yarns which should bring down the price.
WHAT IS THE YARN WORTH?
Whatever the F**k I want to charge.
I'll charge $3.50usd a skein and make a profit as long as people are willing to pay for it. If people want to go elsewhere, fine. As long as I have clientele I'll charge what people are willing to pay for. That doesn't make me a jerk, I'm (hypothetically) selling a product that has high demand. No one is getting screwed if everyone is happy. Branding has a lot to that as well as people want to already know your products brand name.
People will pay more for a product that has higher perceived value, but that's also a lesson on cognitive dissonance that I don't have to lecture on.