SOM Pricing Reform

[J-Pav]

This one walks the edge of maybe taking it over to [b:597747af8e]The Bullpen[/b:597747af8e], but...

It's an interesting little economic and social microcosm we have here in this thread. First off, as none of us (that I'm aware of anyway) are privy to the financials, none of us are in a position to make an informed decision with regard to SOM pricing. So [b:597747af8e]keyzick[/b:597747af8e]'s simple statement was absolutely right on.

Secondly, let's for the sake of argument take the discount path.

What does this do to the SOM Online reputation? Does it cheapen the product? Can you live with the strategy as the economy recovers? What if the recession is lengthy, as we had in the 70s? What if the economy recovers and the customers demand the "discounted price" they have become accustomed to? So the answer is not simply "times are tough, we should lower prices."

$100 for five teams is not really a lot of discretionary entertainment money in the big scheme of things. Heck, it cost me nearly $600 to take three seats at [i:597747af8e]one[/i:597747af8e] Caps-Penguins game (but we were on the glass and I was sitting four seats from Pat Sajak, so it was worth it to me)! Anyway, when you can have five teams that last two or three months or have [i:597747af8e]one[/i:597747af8e] family movie night, then really just what does that $100 mean to you? SOM Online, I would argue, is not about price to begin with, and screwing around with it might really risk damaging the SOM brand name.

I don't know how many people play the $12.50 leagues, but I can tell you I've never played one. Do they fill fast? What if 2009 was a $12.50 league? How soon before 2009 would seem stale and nobody was playing it anymore? It might be just me, but a good recession strategy to me would be about being consistent and protecting the brand. If there were any discounts to be given, they should probably be focused on long-term loyal customers who buy most often. Maybe a discounted 25 pack instead of a 5 pack. This would be known as the "Altec1969 Discount Package".

Still, it's interesting to read people's opinions of how [i:597747af8e]they[/i:597747af8e] would grow [i:597747af8e]other people's[/i:597747af8e] customer bases.

As an aside, the very best strategy as a customer is simply to [b:597747af8e]WIN[/b:597747af8e]. You get two free teams for every CHAMPS team, fellas.

[ROBERTLATORRE]

J-Pav, your trophy case precedes you. Thanks for chiming in on this.

[quote:72bc73302c="J-Pav"]Still, it's interesting to read people's opinions of how [i:72bc73302c]they[/i:72bc73302c] would grow [i:72bc73302c]other people's[/i:72bc73302c] customer bases.[/quote:72bc73302c]

Thanks! I am available for small business consulting on an initiative by initiative basis at a recession buster rate of $50(or two team credits)/day.

PracticalDoc, xoxothis, rmilter, and ggrover charge slightly more however.

;-)


[quote:72bc73302c="J-Pav"]screwing around with it might really risk damaging the SOM brand name[/quote:72bc73302c]

SOM has been around for decades, their branding is safe, as is TSN.


[quote:72bc73302c="J-Pav"]If there were any discounts to be given, they should probably be focused on long-term loyal customers who buy most often[/quote:72bc73302c]

Yep, that would be me, which is why I started this thread :-) I average about 30 teams/year which is $750 annually ([b:72bc73302c]EEEESH!, no one tell my wife![/b:72bc73302c]). Not the most by comparison to some of the big hitters, but enough to have a voice.

[xoxothis]

Exactly the point, I would have lots more teams if the prices were cheaper. As it is Ive already spent 30 teams in the 70's league and more in the 80's. Not to mention all the others, so I would think I would qualify for a veteran discount if it was offered? But I would hope to get new players interested as well, and if they see they have to choke out 25 bucks for a team they are more likely to not. The only reason I play so much is because I used to play the boardgame as a kid, so I know most of the rules and what your looking at when viewing a card or picture of one. So the more teams in circulation the better for everyone right? More experience for those who already know what they are doing, and for the green they start a new fun hobby. But can be an expensive one depending on peoples income? I dont make much money being on disability, but find a way to atleast keep 2 teams active at all times. But if there was a drop in price I would probably have more like 3 or 4 at once. I'm coming up on my last credits, and have been thinking about dropping down to 1 team because of the situation that the economy is in. Whatever is decided Im sure I will still be paying the full price just not as many thats all. It would be nice to see another stimulus package thou, and just in time for me if it happens! :roll:

[Detroit-Tigers]

Here is the problem- as I know this has been said before by the TSN guys.

They don't make much money from SOMO- definately not as much as the other lines of business and they spend an inordinate amount of time maintaining and such (much more than makes financial sense, but they love this game which is why they keep it). Where we might have 50 games per day (~20,000 games per year) @ $20+ each = $400,000. Heck that barely covers Bernies salary. Then there are liscening fees, overhead, taxes, etc.... Compare that to fantasy where they might have millions of paying customers and this is small potatoes.

Also, reducing the price doesn't really make much sense. First of all the revenue here is fairly small (sure we pay a lot, but there are not that many of us). Secondly, the economics don't make sense. If they reduced the price by 20%, they would need 25% more sales just to break even. I not certain that the 5 pack deals were revenue increasing, probably more revenue neutral.

That being said, there is always to case to be made to bring in new business (such as the free week in 2003?), as they tried to do with Fantasim and such, so they should consider something, but it is more likely a new type of game introduction to drive new users that they can upsell to the fullpriced game.

[keyzick]

Ha, I'm with Latorrer...don't tell my wife how many teams I have either!

Putting aside technical improvements to the game, which are more subjective based on people's preferences. I'd really like them to improve the speed of the site. I'll sometimes click off a boxscore before I even view it, to go to whatever next screen I want to view, knowing there's such a long delay that I still have plenty of time to take in all the stats I want to view in the boxscore anyway!

But hey, I'm addicted to this game, so even THAT doesn't hamper my happiness with it!

[ROBERTLATORRE]

[quote:2af81f0ee5="Detroit-Tigers"]Here is the problem- as I know this has been said before by the TSN guys.....[/quote:2af81f0ee5]

Detroit-Tigers, thanks for the additional insight.

I guess what that leads to next is exactly what is the business model for TSN entering this line of business. If it was meant to be a revenue stream, then I still support my original position.

[b:2af81f0ee5]If TSN built the SOM games because of a "love for the game" and not necessarily as a income generator and they are breaking even, or even losing money, then I'd rather play less teams and still have the game available then not have it at all.[/b:2af81f0ee5]

Having said that, IT is my business. In a company the size of TSN, with the other web games that they offer and their internet presence, the overhead/maintenance/support of the SOM games should be very, very small, leveraging the investments in the larger revenue producing web portions of their business.

I'd really like to understand why TSN spends an inordinate amount of time supporting this game. Heck, [b:2af81f0ee5]I will volunteer my time to help them with the infrastructure to see if the burn could be reduced.[/b:2af81f0ee5]

I love SOM as much as anyone and have been playing for more then 35 years. The TSN online version is a favorite hobby of mine and I look forward to many more 80's seasons without a championship! I just wish it wouldn't cost so much, remember, all you 50+ trophy winners need guys like me to fill your leagues so you can win your free credits!!! ;-)

[scorehouse]

i'd buy more teams if they would introduce more new games and inject new cards into the old ones.

[Palmtana]

[quote:874359dc57="J-Pav"].....I don't know how many people play the $12.50 leagues, but I can tell you I've never played one. Do they fill fast?....... [/quote:874359dc57]

3-4 weeks to fill. Same fun game. Come on in!


[quote:874359dc57="J-Pav"].......What if 2009 was a $12.50 league? How soon before 2009 would seem stale and nobody was playing it anymore?........ [/quote:874359dc57]

Since 2007, 2008, ATG3v2, ATG4 and 1986 are all part of the same [i:874359dc57]Player Set[/i:874359dc57], it will be many, many dice rolls before they are discounted.

[ROBERTLATORRE]

[quote:2fd11595ba="Palmtana"][quote:2fd11595ba="J-Pav"].....I don't know how many people play the $12.50 leagues, but I can tell you I've never played one. Do they fill fast?....... [/quote:2fd11595ba]

3-4 weeks to fill. Same fun game. Come on in!
[/quote:2fd11595ba]

Are the credits full value if you win or just for the discounted card sets. The 1/2 price leagues would definitely stretch my spending!

Rob

[LMBombers]

If you win a credit in a game that is half price you only get a credit for that same half price game.