The Group Buy Phenomenon

[Borogove]

honestly I don't think WilliamK could even sell a copy at the regular price. Ultimately in this case it took a 99usd synth and turned it into a 50usd synth. So it devalued it and repairing that is probably impossible.

But as long as he can keep successfully selling in volume, I'm pretty sure he doesn't care. 3 sales at $50 is way better than 1 at $99, particularly in software with infinitesimal unit cost.

Well the Wusik GB created a lot of users and a lot of gossip, and a lot of music.

When ppl come to KvR and see the level of Wusik activity that goes on, it leads them to believe that Wusik is an unmissable synth they ought to buy. It encourages sales.

And that will boost sales not just for Wusikstation but also for anything WilliamK does in the future. I'm green with envy.

[Cabinfever]

there is no proof that twice as many wusiks sell for $50 as would have heppened using normal methods and pricing at $99.

maybe the market is actually not very sensitive to the $50 - $99 range and that there would have been just as many sales (or close to the same) ?

to me, if a vsti is really good, then what it costs in the range from $0 to $150 is irrelevant. of course others on a lower budget may feel differently. but then that's another consideration: if you're selling to pros or semi-pros then $50 or $100 isn't going to be the decisive factor. its the low-end hobbyist who is most price-sensitive.

what you now have with wusik is a synth which costs $50 but is only available for delivery one week a month. if you want it outside of that one week you pay an extra $49.

that's not necessarily brilliant marketing, especially online where most people expect instant delivery.

i believe that once the novelty of the group buy craze ends, then wusik will have to revert to a "standard" 4-weeks-a-month price of $50. in the long term that may be much worse for the developer.

[op519]

honestly I don't think WilliamK could even sell a copy at the regular price. Ultimately in this case it took a 99usd synth and turned it into a 50usd synth. So it devalued it and repairing that is probably impossible.

But as long as he can keep successfully selling in volume, I'm pretty sure he doesn't care. 3 sales at $50 is way better than 1 at $99, particularly in software with infinitesimal unit cost.

But how long can he continue to sell @ this rate. We all know that the market for music related products is not endless. I can imagine that in coming times it probably would not be sustainable

Which brings me to -

Well the Wusik GB created a lot of users and a lot of gossip, and a lot of music.

When ppl come to KvR and see the level of Wusik activity that goes on, it leads them to believe that Wusik is an unmissable synth they ought to buy. It encourages sales.

And that will boost sales not just for Wusikstation but also for anything WilliamK does in the future. I'm green with envy.

Yes this is true. No denying it. It is probably one of the most mentioned vsti here. Word of mouth is one of the most important methods of advertizing. Not enough can be said about that. But really, do you think that people here at least who have seen the recent past of Wusik (another part of word of mouth i would say - the negative part in this case) would not just wait for the group buy of WusikMod (which is said to be the next Wusik branded product)

Further, WilliamK has said that he doesn't want to do more than two products (naturally this can change at any time) so what happens when the WS ends its group buy runs (due to no people left who don't own it ) and the same happens to WM?

Paid updates? This wont bring in as much money as is probably needed.

New product with new group buys?

This is why I say that it will probably affect his business and I honestly feel it can do the same as a whole if these things stay as common as they have been up to now.

Just for info's sake, this ISNT anything against WilliamK. He is a top guy. It is just a statement in my mind of the potential coming effects of the GB Craze.

[kovacs]

Further, WilliamK has said that he doesn't want to do more than two products (naturally this can change at any time) so what happens when the WS ends its group buy runs (due to no people left who don't own it ) and the same happens to WM?

WilliamK also said "No more GroupBuys!" and then launched another one.

Paid updates? This wont bring in as much money as is probably needed.

Which WilliamK also tried...but got almost fried by his users for it (but solved it nicely by offering those who prepaid a free copy of his next product later).

I have had doubts about WilliamK's business approach from the beginning but it does not detract from the fact that he believes he knows what he's doing and that he has an awesome product to boot. So from one angle I think he is really putting the GB concept through it's paces.

[ModuLR]

OhmForce Symptohm Melohman...

There just isn't anything like it!! a GB on this would be lovely!

[Ocean Zen]

OhmForce have already done a group buy, and soon there'll be one other stnth vaguely like it. MiniMonsta!

[Forever Sun]

Just a few ideas.

I don't know the 'social economic' side of Group Buys and its effect on business, however, life is too short to think about this. You see a GB, you decide, you enter, you get your new toy.

In my case, I've purchased stuff which I wouldn't be able to afford. This allows me to concentrate on making music, instead of moaning about not having the right VSTi or sample library.

The more expensive, desirable products have a natural 'Group Buy' element to them. The best example here is EWQLSO Gold. However, offerring a GB on a $25 VSTi ( for example) would become ridiculous. Sad and ridiculous for the developer and the user. Someone has already mentioned wanting a GB for Voxengo's Elephant. This is already so cheap ! $69 for this quality ?!

Hopefully, people will not develop a Group Buy mentality expecting everything to be available at a knock down price.

Are things going to become ridiculous in the future with GBs on products in the (RRP) $25 price range ? Are small, struggling developers going to offer silly,desperate deals just to stay afloat ?

However, I don't know what to think about the 'perpetual' group buy mode of selling, like the Wusikstation GBs. Is it a highly calculated and thought out business plan ? Is it motivated by the developer's kind nature ? Or Is there an element of desperation here ?

Questions, questions. But who cares ? Each developer has to take resposibility when offering a Group Buy.

PS.
I'd like to see a Tassman 4 GB.

[JMC]

There will be a Sytrus group buy (when we finally get www.sytrus.com ready).

See ya,

jmc (FL Studio)

[leonard]

Sytrus GB? Bring it on!

[JMC]

Sytrus GB? Bring it on!

You can sign up here :

http://www.flstudio.com/sytrus

See ya,

jmc (FL Studio)

[jens]

Wow! 50$ as a minimum prize - I think I'm in.

[Meffy]

<DaveBarry> We think "The Group Buy Phenomenon" would be a good name for a rock band. </DaveBarry>

[luCiPHer]

Wow! 50$ as a minimum prize - I think I'm in.

yeah, jump in.
i want that 50$ price!!

[Borogove]

However, offerring a GB on a $25 VSTi ( for example) would become ridiculous. Sad and ridiculous for the developer and the user. Someone has already mentioned wanting a GB for Voxengo's Elephant. This is already so cheap ! $69 for this quality ?!

Now wondering if I shouldn't have started Meridian at US$150 and group-buy it down to $35...

[ouroboros]

However, offerring a GB on a $25 VSTi ( for example) would become ridiculous. Sad and ridiculous for the developer and the user. Someone has already mentioned wanting a GB for Voxengo's Elephant. This is already so cheap ! $69 for this quality ?!

Now wondering if I shouldn't have started Meridian at US$150 and group-buy it down to $35...

Now you're screwed;

Meridian group buy:
10 @ $15.00
50 @ $ 7.50
75 @ $ 2.50