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Originally posted by His High Holiness
Quote:
Originally posted by GarthB
Actually I aced my marketing classes and I've spent over 20 years in the profession.
Just as there is more to the JEA then you apparently understand, there is more to pricing then your level of comprehension grasps.
Using your (ahem) logic, a Lexus should be priced at $5,000.
Let's look at the potential market. All amateur umpires? Hardly. You and your lack of appreciation of what may be offered is example enough that that isn't the case.
We need to whittle the anticipated market down to those amateur umpires who either know what the JEA offers or who can be easily educated to understand that. Again, you apparently do not fit either of these groups.
Now then, we can compare value with what exists in the market place and estimate demand. (Why don't we consider the cost of the material? Because in the real world, that is insignificant. People don't care what something costs to produce, they make decisions based on what they are willing to pay. It;s quite simple really: decisions come down to "which would you rather have...the $199 or the JEA?
The demand by the market most likely to purchase a JEA will be effected only minimally by cost, provided it is not completely out of line with value and comparable material.
Or to put it in terms you might understand; out of 1,000 potential customers who fit the profile, let's say 500 (a low figure) will pay $199, while 950 (a high figure) would pay $30. In case you can't do the math, even with 450 fewer copies sold at the $199 price the gross revenue is still $71,000 more than selling 950 copies at $30.
Stick to coaching.
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Garth;
This is incomplete logic and incomplete research. My guess is that no matter what you charge, 100 people will buy it and illegally copy it it for 850.  How may illegal copies of JEA do you think that are out there right now!?
Peter
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Good God, Peter. Did you expect me to spend two weeks to a month preparing my response to an idiotic post that demonstrated no understanding of marketing what-so-ever? You know better than that.
My reply was a basic example of revenue generation by price. It could have been widgets. Surely you understood that.
I would dispute your figures as being unrealistic. The current crop of illegal copies would have little effect on the growing demand for any copy at all. If you can afford me, I'd be happy to generate a survey that could accurately, within 4 percentag points, peg the number of orders at a given cost point.
I have no idea how many illegal copies there are total. I know of one individual who passed around several illegal electronic copies, but outside of that I have only anecdotal information.
The demand for the JEA is large. Obviously price will effect that demand. My previous post was not a scientific argument for a price point, but rather a demonstration that those who believe lower costs ultimately result in more dollars from more sales know little about marketing.
I really thought you of all people would have grasped that.
I guess I had over-estimated the crowd at official.forum. Maybe there's rationale for some of those articles afterall.