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Please see the most recent updates in the "Where did the .com name go?" thread. Posts number 16 and 17.
Exchange rates
- Thread starter bazzar
- Start date
I spend quite a bit of time in OZ, though it is not as enjoyable as it used to be due to it now being a really expensive place for a Yank. Noted the bank ATM I visited had a short term CD rate of something like almost 6%. Our "Gummit" is trying to borrow at cheap rates and then inflate the currency to repay at a less than zero rate in real value. The B'omma plan to allow us to compete with installing hubcaps with China is to try to value the currency on par with the RMB (China).
A lot was made of the Opra visit to SYD (I was there then) but as some sage pointed out in the paper, not much would come of a campaign to encourage US tourism in OZ as long as the exchange rate was what it was.
Good luck and hope all has recovered from the unseasonal waters.
Cheers: Tom
A lot was made of the Opra visit to SYD (I was there then) but as some sage pointed out in the paper, not much would come of a campaign to encourage US tourism in OZ as long as the exchange rate was what it was.
Good luck and hope all has recovered from the unseasonal waters.
Cheers: Tom
DennyA
SOH-CM-2023
The problem is, the equation isn't
50 copies at $25 with no whining vs.
50 copies at $57 with lots of whining about the price
It's
50 copies at $25 with no wining vs.
8 copies at $57 with lots of whining about the price and many interested customers passing on the product.
The exchange rates are unfortunate, but explaining to them will not cause people to pay significantly more for a luxury product that they don't perceive as offering enough entertainment value to justify the price.
I've bought dozens of FS9/FSX planes for under $30. I've bought maybe 3 or 4 for more than that, and only because those were planes I really wanted to have.
Lots of those $15-20 planes, I only flew a few times, and I'd have NEVER had enough interest to justify spending $35-40. So developers made a lot more off me by charging less, because they made $15-20 instead of $0.
Read up on Steam sales and iTunes sales and what they can do for sales levels. There comes a point where you can find a price that moves a product closer to impulse buy territory for a wide market and you end up making more cash in the end because a dramatically higher proportion of your potential market bites on your product.
50 copies at $25 with no whining vs.
50 copies at $57 with lots of whining about the price
It's
50 copies at $25 with no wining vs.
8 copies at $57 with lots of whining about the price and many interested customers passing on the product.
The exchange rates are unfortunate, but explaining to them will not cause people to pay significantly more for a luxury product that they don't perceive as offering enough entertainment value to justify the price.
I've bought dozens of FS9/FSX planes for under $30. I've bought maybe 3 or 4 for more than that, and only because those were planes I really wanted to have.
Lots of those $15-20 planes, I only flew a few times, and I'd have NEVER had enough interest to justify spending $35-40. So developers made a lot more off me by charging less, because they made $15-20 instead of $0.
Read up on Steam sales and iTunes sales and what they can do for sales levels. There comes a point where you can find a price that moves a product closer to impulse buy territory for a wide market and you end up making more cash in the end because a dramatically higher proportion of your potential market bites on your product.
DennyA
SOH-CM-2023
That "nice try" is pretty offensive, Baz. Just trying to share my experience as a customer. (And I have bought AH products in the past.)
I personally think that, if a product isn't ridiculously specialized, you can make more money on it in the end pricing it on the lower end. For something like, say, an obscure French trainer, no. But for something like a P-38, Spitfire, B-29, DC-9, with wide recognition and appeal? Price it high and you'll only get the people who REALLY have to have that plane. (Such as when I made an exception for the Vertigo F9F, as a I LOVE the Panther.) Price it medium/low and you'll get a lot more "that'd be fun to try out" buyers.
Anyway, it wasn't a "try." I don't want to manipulate anyone's prices. I speak with my wallet. I bought virtually all of CaptainSim's planes... And every single Rise of Flight add-on plane... when they dropped in price via sales to levels where I personally felt I'd get enough value from them. I bought lots of AH products in the days of the F9F, F5F, FS9 Spitfire, etc. when the prices were lower.
bazzar
Charter Member 2018
Hey mate, no offense intended, just joshing with you, which really was the intention of this thread.
Like any other business, I'm afraid, production costs rise and very, very few manufacturers (or developers come to that) can retain pricing that was introduced, in our case, ten years ago. What did you pay for a coffee back then?!
Like any other business, I'm afraid, production costs rise and very, very few manufacturers (or developers come to that) can retain pricing that was introduced, in our case, ten years ago. What did you pay for a coffee back then?!
DennyA
SOH-CM-2023
Ah, okay. Never mind the offense, then. 
Too hard to tell tone online.
Sure, a coffee may have gone up from $2.50 to $3.00 in the meantime. But I'm proposing that this may be a case of the market pricing coffee at $15 a cup in the first place, so only caffiene addicts are buying.
Too hard to tell tone online. Sure, a coffee may have gone up from $2.50 to $3.00 in the meantime. But I'm proposing that this may be a case of the market pricing coffee at $15 a cup in the first place, so only caffiene addicts are buying.
bazzar
Charter Member 2018
One of the drawbacks of being famous is that you forget that some people may not know who you are...:d
I own Aeroplane Heaven. We started in this game ten years ago. We don't sell much any more as we are busy building for publishers. Bird in the hand and all that.
I have 40 years in the advertising and marketing industry so I think I know most of the tricks. Costs rise, there are only really two ways to go, accept a pay cut or pass the rises on.
This is such a small market. People don't seem to realise that it is barely short of the "hobby" industry level for most devs. We are certainly not talking about thousands of units. More likely a few hundred at best, if you're lucky and only then if the product is any good.
I own Aeroplane Heaven. We started in this game ten years ago. We don't sell much any more as we are busy building for publishers. Bird in the hand and all that.
I have 40 years in the advertising and marketing industry so I think I know most of the tricks. Costs rise, there are only really two ways to go, accept a pay cut or pass the rises on.
This is such a small market. People don't seem to realise that it is barely short of the "hobby" industry level for most devs. We are certainly not talking about thousands of units. More likely a few hundred at best, if you're lucky and only then if the product is any good.
bazzar
Charter Member 2018
Ah, okay. Never mind the offense, then.
Sure, a coffee may have gone up from $2.50 to $3.00 in the meantime. But I'm proposing that this may be a case of the market pricing coffee at $15 a cup in the first place, so only caffiene addicts are buying.
$2.50 to $3.00?!!! Gee can I come over to your place? We pay upwards of $4 here these days.
When I started AH, the dollar was 55 cents, it's now hanging around $1.07. A 50% cut in revenue if sales remained at 2001 levels.
wombat666
Administrator
G'Day Baz.
Hope you managed to dry out after the deluge, still a lot of water covering rural properties down here in the 'Garden State'.
I empathise with you on the subject of 'short production runs', back when Southern Cross Miniatures was going at 110% we limited our builds to 100 only and kits at 400.
When they were gone they were gone.
Nowadays the market is dominated by die-cast rubbish, a 'Limited Edition' run is 8,000 'Numbered' items.........that's in one colour of course as the next 8,000 are a different shade.
I suppose it's the 'I want it RIGHT NOW' mindset, but the prices are rising in China and as of a year ago the Chinese were becoming 'difficult' to deal with.
Even if we had to shut up shop as a result of my youngest brother's stroke I must say it is very nice to have no further dealings with China.
As for exchange rates and sales figures, quality usually wins out in the end.
PS:Coffee??? I'm looking forward to Madame Wombat returning from Japan next week so I can enjoy her 'Special Blend'.
Hope you managed to dry out after the deluge, still a lot of water covering rural properties down here in the 'Garden State'.
I empathise with you on the subject of 'short production runs', back when Southern Cross Miniatures was going at 110% we limited our builds to 100 only and kits at 400.
When they were gone they were gone.
Nowadays the market is dominated by die-cast rubbish, a 'Limited Edition' run is 8,000 'Numbered' items.........that's in one colour of course as the next 8,000 are a different shade.
I suppose it's the 'I want it RIGHT NOW' mindset, but the prices are rising in China and as of a year ago the Chinese were becoming 'difficult' to deal with.
Even if we had to shut up shop as a result of my youngest brother's stroke I must say it is very nice to have no further dealings with China.
As for exchange rates and sales figures, quality usually wins out in the end.
PS:Coffee??? I'm looking forward to Madame Wombat returning from Japan next week so I can enjoy her 'Special Blend'.
bazzar
Charter Member 2018
G'day mate,
Yeah we've got dry feet at last. I used to think that there was very litle money in this game but I just don't know how you recover for the time and craft that goes into a model like the ones you make.
Getting materials at the right price must be a nightmare. I know finding good stuff for my guitar work is not easy and that's just a hobby.
Please don't close up. I am a sucker for your type of model. I also love the smaller dedicated plastic model outfits too like WingNut Wings over in NZ. The attention to detail and the quality of the product is astoundingly good for the money. Again, I have no idea how they do it at a profit but there you go...
Yeah we've got dry feet at last. I used to think that there was very litle money in this game but I just don't know how you recover for the time and craft that goes into a model like the ones you make.
Getting materials at the right price must be a nightmare. I know finding good stuff for my guitar work is not easy and that's just a hobby.
Please don't close up. I am a sucker for your type of model. I also love the smaller dedicated plastic model outfits too like WingNut Wings over in NZ. The attention to detail and the quality of the product is astoundingly good for the money. Again, I have no idea how they do it at a profit but there you go...
