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Old Tue Nov 09, 2004, 12:49pm
GarthB GarthB is offline
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Join Date: Aug 2000
Location: Spokane, WA
Posts: 4,222
Re: Garth,

Quote:
Originally posted by Tim C
Rich's post show why some people umpire and some are rats.

Rats look for cheese in the "easiest location" . . . why argue with a rat that has no clue of what the value of an item is to a well prepared, ever learning, caring umpire?

If you argue with rats you just start to smell . . .

Tee
Tee:

No, seriously, it is my fault. One of my many flaws is over-estimating the intelligence of adults who seemingly have at least mastered the science of posting on the internet. This leads me to take short cuts in my posts.

I assumed, especially after my post to Peter, that a reader would have understood that my posts were not meant to be specific, but rather a general discussion regarding pricing.

As I said earlier, the cost of producing and marketing a product has nothing to do with what a consumer will pay for that product. They simply don't care. They are motivated by what it's value is to them, in any sense of that word. They then make a simple decision: is that "value" worth more or less than the price? In other words, what is more important to them at that time, the product or the money?

Now, what I left unsaid, and foolishly assumed as a given, is that if the price point at which a product would sell is below the cost of producing and marketing the product, obviously, the product will not be made. Except of course in those rare examples of utter marketing failure.

Peter guesses that only 100 people would purchase the JEA. My disagreement with that is based on the information I have that the J/R sells more than that. I'm not sure, but I would guess the BRD also sells more than that. I am convinced the demand for the JEA would, initially, be greater than for either of those books.

The concept that people would buy a copy and then make illegal copies for friends obviously is a valid concern in today's market place. It is a factor in pricing, but not the determining factor.

My original statment that I would pay $199 for a legal updated copy of the J/R is valid. I would pay that. But since I have not done any studies on the subject, let's assume that a lower figure is more appropriate. Let's say , oh, $89 turns out to be an accurate price for the definitive 700 page work on the Official Rules of Baseball.

To those who still believe that $30 pricing means more revenue due to more sales, let's point out that it would take three times the volume to generate the same revenue. However, the costs of product and marketing would nearly be tripled as well (depending on the economy of scale). Thus the gross profit margin, one of the key motivators for bringing the product to market, (sorry, but this is still a wonderful capitalistic country) would be far less.

As for illegal copies: the costs in copying a 700 page book and finding a method to bind it would cost the average crook $40 to $50, not counting the time involved. Are there some who do this? Sure, Rats are everywhere. But for most of us the price difference in having the genuine article is worth the difference in cost.

Now, I'm sure I've left something out. I neither have the time nor inclination to conduct marketing seminars for Rats. At least not for free.

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GB
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