Plugin pricing in the AI era

[floofaudio]

As you know, AI has gotten a lot better this year, to the point where someone with no coding experience could create (and potentially release) something resembling a prototype plugin with pure vibe coding. If you have ever released a plugin, you know there is an extremely long way from prototype to finished product, though.

Having said that, an experienced developer can still benefit from AI in a great way simply by prompting with intention, writing less manual code, and still being in control. And this would probably lead to shorter development time and therefore reduced costs?

Especially for a solo developer, I have a feeling that users assume the accomplishment of releasing a plugin has somewhat less value these days. Which feels bad, knowing the amount of work and skill that, in my opinion, is still needed.

My question: Have you had to lower your prices recently, possibly as a result of AI getting better and more people releasing plugins? Is that inevitable, or are users willing to pay the same prices as before AI was a thing, as long as the product is good? Is there a difference for solo, indie, and larger companies? Any thoughts?

[JustAnotherUser]

I think it really depends, because I feel like, as a result of AI getting better, there will probably be more and more plugins that are really good and cheaper. There are still some people that won't buy plugins from unknown developers, because they might suspect that AI was used to create the plugin. Some people are skeptical.

I myself am not opposed to AI being used in plugin development because I am doing that myself right now. But AI isn't at the point where you can just prompt, "Make me a plugin," and its perfect. There is still engineering to do to make the plugin actually good, because an experienced developer can still make a badg plugin. And an experienced audio engineer who has the help of AI can make a good plugin.

When it comes to the pricing, I think there will be a shift, at least a small one. The bigger brands will probably still keep their higher prices, but the smaller ones will have to either make absolutely amazing plugins to charge bigger prices or just lower it to get customers. I think we are at a point where people are kind of getting frustrated by the use of AI in the creation of the plugins. It will probably change, and people will understand that the plugin can be good even if AI is used. Maybe we'll be willing to pay similar prices as before AI was a thing.

[Dexter US]

Did a couple of amorph plugins in under an hour yesterday. If it was inexpensive to convert them to vst I could see doing cheap bundles.. If they could compile the cmajor plugins to vst I would be super impressed and they could use a graphics editor for thier editor so that I don't have to do it by hand..

[pekbro]

Definitely perception of value has gone down in recent years, AI certainly has something to do with it, but also the market had changed on it's own. You can attribute that to mass marketers using blowout price cuts to increase sales. Waves was probably the first to do it, companies like Plugin Alliance quickly followed suit. Add mass vendors like Plugin Boutique, naturally consumers got used to that an gradually shied away from high pricing. Effectively, those strategies have definitely devalued plugin pricing from the early days. AI has definitely had an impact, but it's more been fuel added to an already burning fire if you ask me.

These days, unless you have an established customer pool, you really have to come up with something impressive or desirable to rate high pricing. In particular new developers have to deal with this. $50 for a new developer's plugin is probably too ambitious when you are unknown. The bar has gone up substantially and consumers will no longer accept a level of work that falls below the bar.

Personally, I agree with it. Developers have to make a living, but consumers as well these days. New devs tend to think the plugin business is so easy, and that they can deliver run of the mill products these days and expect to get premium pricing. In my book that is naive and doomed to failure.

Anyway, AI is definitely a culprit, but it's impact is negligible I think, in the big picture.

Developers need to up their games quite a bit these days to remain competitive I think. Which is perfectly doable... If you're smart about it, you can realize that there are very straightforward mechanics at work these days, and you can use them to your advantage. The days of selling very expensive plugins are for the most part, in the past. That does not mean that success is not attainable today however.

[jamcat]

Having said that, an experienced developer can still benefit from AI in a great way simply by prompting with intention, writing less manual code, and still being in control. And this would probably lead to shorter development time and therefore reduced costs?

That's already been going on across the industry for quite some time. It's firmly entrenched in the development process at this point.

[FigBug]

Pricing has already been a race to the bottom for years. Constant sales. Look at Plugin Boutique. Plenty of big name brands selling plugins for under $10. I don't know how anybody can survive doing that, after PB takes their cut, was is the developer getting, a few bucks a plugin?

[JustinJ]

Pricing has already been a race to the bottom for years. Constant sales. Look at Plugin Boutique. Plenty of big name brands selling plugins for under $10. I don't know how anybody can survive doing that, after PB takes their cut, was is the developer getting, a few bucks a plugin?

A lot of the time though they're selling plugins that have been around for decades. They're milking the cow so to speak. Waves did this to the max and for a while now UAD have been doing it. PA just the same now.

I can only imagine they're going for volume sales. Plugins that cost a lot more in the past and were desirable, now available for bargain basement prices.

For newer plugins it's typical market forces though. There's no room anymore for mediocrity if you want to sell at a decent price and have a worthwhile business.

Examples: take a look at Fabfilter plugin prices, the price of Serum 2, Zebra 3 (and the rest of Uhe's catalogue) etc.

[FigBug]

Examples: take a look at Fabfilter plugin prices, the price of Serum 2, Zebra 3 (and the rest of Uhe's catalogue) etc.

Xfer has done a really good job of never putting Serum on sale and not devaluing their product.

Once you start putting stuff on sale, you gotta keep putting stuff on sale to move units. It's a slippery slope.