Zaphod (giancarlo) wrote:Subscriptions, bundles... Prices ARE falling. Several years ago I remember an equaliser was on sale for around 1000. Today the market is willing to pay..15? Maybe 29?
Isn't that slightly oversimplified? How many $1000 licenses did one sell back then? 2-300 maybe at best. Not the tenth of thousands you can reach today with adequate pricing.
It's not that products lost value, it's the fact that we had a radical shift away from B2B were ppl are used to declare their costs as expenses (costs really don't matter) to B2C were ppl can't do that and generally operate at a much smaller scale,
often without any professional ambitions. The amount of DAW users literally exploded over the last years and still does. The banal issue is that these guys can't declare their costs as expenses. But the advantage is, they come in masses.
IMHO, the overall market has a healthy growth. But a much different one compared to the first wave of audio system "digitalization". It's probably this transition so many companies struggle with (to be clear, I think Voxengo has a perfectly OK pricing, the recent super bundle offer is quite cool).
Yes, exactly. However, if you want to sell into this market you will start to realize that previous perceptions of "good value" are also starting to shift. Prices that in the past were viewed as "no-brainers" are not so much anymore.
So, while in a sense, I agree that there's nothing wrong with Voxengo pricing, it remains that they aren't low enough individually to soak up that disposable income that, e.g., I'm giving to Waves instead. I'm not talking about the bundle, on an average cost basis, that's competitive today.
As another example, consider Valhalla, great products, more than fair prices, but, how many reverbs actually cost more than $50 today? I know that it seems at first glance that most probably still do, but, many have gone on sale for less than that over the last few years.
Even those of use who are acutely aware of all of this and think of ourselves as rational buyers, are still subject to the psychology of marketing. However, this is especially true when you are dealing with consumers who make their decisions more on desire than on utility.
I've purchased one reverb that wasn't on sale, that was R0verb by Klevgrand. That's because it was basically less than the cost of a pizza, and I wanted it. If I had waited, I could have had it for less. Truth be told, I probably should have, I don't really use it that much, but, I'm not really all that concerned about it. I waste pizza money enough that I don't care.
Please don't suggest that this is just "my use case", if you're paying attention at all, you will realize that this "use case" is as old as the hills and as common as dirt. It's exactly what's at work in the music industry. People do pay for digital downloads, as long as the price is about the same as a candy bar.
If you don't want to do sales, then don't do them. However, don't get mad when you finally realize that the value of sales is in getting more money to flow in the economy than would otherwise and that none of that money is flowing to you.