Discount for current vb/ipb licence holders?
- Thread starter Rhydian
- Start date
jonsidneyb
Well-known member
Why is everyone trying to push them out of where the optimum point would be based on elasticity of demand.
There is a price point that is optimum for them but they cannot know exactly where it is. There is a price point where if the raised the price the drop off would be greater than the increase in revenue and actually make them less money. There is a point where if they go lower they are ripping them selves off. There is a finite number of people willing to buy at a given moment at the all the different price points. They could go a penny each and it will not cover the variable costs created and even if it did they could all go out to dinner a couple of times and that would be it for all this work.
I hope they can hit the price point that maximizes free cash flow in order to grow and improve the product. People seem to be wanting a bargain using the justification that it is doing the creators a favor and that sounds a bit selfish to me. It will cost them if they are too high. It will also cost them if it is too low. They have not determined a price yet and people are trying to get them to discount an unknown price.
The price that benefits us most in the long run is that which maximizes them. It seems to be a lost economic idea. If you get a bargain basement price and there is support that they have to provide and cover their time and effort put into then you become an economic free rider as you reap the benefits of those that paid more and allowed them to continue the work. More tragic is if it such that they cannot continue.
The demand curve will be the preceived value of the product relative to other products with a discount tvm (temporal equation) which really is a NPV of the improvements made and how they impact you in the long run. The theoretical curve that is the demand curve is not the quantity demanded but a point on the curve. The curve represents the quantity that will be demanded at all possible prices. Then you take the quantity demanded at each possible point and multiply it by the price to find the optimum price. That will put more in their pocket to keep moving forward.
The problem is they are not able to accurately plot this number. All this influence might cause them to short change themselves meaning less progress will be made in the future. I have seen the P&L's of many companies that caved into the demands made into them and they then could not produce what the public wanted then the public complained that they had not done as they had wished.
Sometimes getting the lowest price is not the best for jobs, not the best for productivity, not the best for a standard of living for the consumer if this practice were to go full circle.
You sell your labor to you employer, why don't you put your labor on sale and give them a 40% price break on the work you do for them next month. I am not meaning to sound harsh but please.
We don't know what the price will be, we don't know what discounts there will be, we don't know the long range value of what you will be getting when you make the purchase, we don't know the extent of the harm that can be cause by over discounting we don't know the extent of the damage that can be caused by too high of a price as we don't have the data to calculate anything.
Cant we at least wait until a price is established and we know what the product released is going to look like first?
There is a price point that is optimum for them but they cannot know exactly where it is. There is a price point where if the raised the price the drop off would be greater than the increase in revenue and actually make them less money. There is a point where if they go lower they are ripping them selves off. There is a finite number of people willing to buy at a given moment at the all the different price points. They could go a penny each and it will not cover the variable costs created and even if it did they could all go out to dinner a couple of times and that would be it for all this work.
I hope they can hit the price point that maximizes free cash flow in order to grow and improve the product. People seem to be wanting a bargain using the justification that it is doing the creators a favor and that sounds a bit selfish to me. It will cost them if they are too high. It will also cost them if it is too low. They have not determined a price yet and people are trying to get them to discount an unknown price.
The price that benefits us most in the long run is that which maximizes them. It seems to be a lost economic idea. If you get a bargain basement price and there is support that they have to provide and cover their time and effort put into then you become an economic free rider as you reap the benefits of those that paid more and allowed them to continue the work. More tragic is if it such that they cannot continue.
The demand curve will be the preceived value of the product relative to other products with a discount tvm (temporal equation) which really is a NPV of the improvements made and how they impact you in the long run. The theoretical curve that is the demand curve is not the quantity demanded but a point on the curve. The curve represents the quantity that will be demanded at all possible prices. Then you take the quantity demanded at each possible point and multiply it by the price to find the optimum price. That will put more in their pocket to keep moving forward.
The problem is they are not able to accurately plot this number. All this influence might cause them to short change themselves meaning less progress will be made in the future. I have seen the P&L's of many companies that caved into the demands made into them and they then could not produce what the public wanted then the public complained that they had not done as they had wished.
Sometimes getting the lowest price is not the best for jobs, not the best for productivity, not the best for a standard of living for the consumer if this practice were to go full circle.
You sell your labor to you employer, why don't you put your labor on sale and give them a 40% price break on the work you do for them next month. I am not meaning to sound harsh but please.
We don't know what the price will be, we don't know what discounts there will be, we don't know the long range value of what you will be getting when you make the purchase, we don't know the extent of the harm that can be cause by over discounting we don't know the extent of the damage that can be caused by too high of a price as we don't have the data to calculate anything.
Cant we at least wait until a price is established and we know what the product released is going to look like first?
jonsidneyb
Well-known member
Sorry about that last post. I have just seen too many times on P&L analysis where things go terribly wrong.
It is natural to think about ourselves but we have to also think about them. There has to be something in it for for them.
If the deal does not benefit both sides there is no long term future in this. It would be nice if there was a way to do a cost benefit analysis on this but there isn't. I would hope the producer and consumer surplus in this would be balanced, not too heavily in our favor but not too heavily in theirs but where both sides do well in all this.
I don't even know how we can talk discounts yet until we know the price.
I know of a case there tons of people were asking someone to give them 5% discounts because others kept saying 5% discount on all purchases and pushing it while this guy stayed silent. Finally someone had to point out that he was already cheaper than everyone else even with their 5% discounts. In fact it should a little about the margins of his competitors as he was 30% under their sale price but still he got bother by the idea of a discount. The word discount permeated the air and people actually missed the reality. He had a great sale day by saying that there is not sale and some people looked. Unfortunately in spite of the volume increase it was only temporary as other still were drawn in by the word sale.
What is they have the price dangerously low to begin with, would we still want a sale.
We don't know what the product is going to be like when ready for sale and we don't know the price they are going to ask.
It is natural to think about ourselves but we have to also think about them. There has to be something in it for for them.
If the deal does not benefit both sides there is no long term future in this. It would be nice if there was a way to do a cost benefit analysis on this but there isn't. I would hope the producer and consumer surplus in this would be balanced, not too heavily in our favor but not too heavily in theirs but where both sides do well in all this.
I don't even know how we can talk discounts yet until we know the price.
I know of a case there tons of people were asking someone to give them 5% discounts because others kept saying 5% discount on all purchases and pushing it while this guy stayed silent. Finally someone had to point out that he was already cheaper than everyone else even with their 5% discounts. In fact it should a little about the margins of his competitors as he was 30% under their sale price but still he got bother by the idea of a discount. The word discount permeated the air and people actually missed the reality. He had a great sale day by saying that there is not sale and some people looked. Unfortunately in spite of the volume increase it was only temporary as other still were drawn in by the word sale.
What is they have the price dangerously low to begin with, would we still want a sale.
We don't know what the product is going to be like when ready for sale and we don't know the price they are going to ask.
jonsidneyb
Well-known member
I have an idea. Lets have them raise the price $20.00 higher than they would have sold it to us for then give us a $20.00 discount.
Rhydian
Active member
No one has said they want to do the developers out of money the opposite in fact, all I wanted was to bring in a few more ideas into the flow. Whats good and bad about them, do they have any potential at all?
jonsidneyb
Well-known member
Because it is being done with no data. lets say I was gong to sell something at a 5% margin but had not told anyone what the price was going to be yet. Lets say I planned on keeping it at a 5% margin but suddenly everyone asks for a 10% discount.
Ideas on pricing can't reasonably be done until we see a product and he might be lowballing to begin with. We don't know. Have you ever done a P&L analysis?
Ideas on pricing can't reasonably be done until we see a product and he might be lowballing to begin with. We don't know. Have you ever done a P&L analysis?
Cezz
Well-known member
I am sorry but I really don't like this idea... Heck don't get me wrong I am a current licence holder for vB but I think the planned early adopters sale will be enough no need to specify it to just currently licence holder of OTHER software companies.
Plus xenForo will sell itself anyway.
Plus xenForo will sell itself anyway.
Rhydian
Active member
No, obviously not. And have you read anything?
I don't mean to be rude but your getting on my nerves you seem to be saying that we want to do developers out of money we don't know the price, they don't the price. I really appreciate the work the developers have gone into on this project and discussing potential ideas including their flaws is not going to put them on the streets.
Lots of people have added their views and if you read anything you would realise that there are loads of downfalls even before you factor in costs to the developers/product.
jonsidneyb
Well-known member
I read every word of it. You don't have the data. It looks like they are looking for feedback on the software. Let them come up with a price.
This is not very fair to them when you have not seen the finished product or the price they are going to propose.
This is not very fair to them when you have not seen the finished product or the price they are going to propose.
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