by PotKettleBlack » Tue May 24, 2011 8:16 am
[quote:79b28637b7="rjoh"]Sounds like ur pricing model is set but the logic is severely flawed.
If all WalMart thought of is take existing customers and how many more units would they buy at a lower cost, they'd never lower any prices.
They lower prices to attract new customers - better to try and sell a million glasses of lemonade at 5 cents then 1 glass at a million dollars.
Value per $ spend is the watch word, esp in this bad recession and with the cost of technology at a rediculously low cost.[/quote:79b28637b7]
Wal*Mart does this other thing, aside from offer (theoretically) low prices. They advertise the hell out of the low prices. So, even when the prices aren't all that low (they really aren't, at least according to everything I've read on the subject), the perception is that they are very low.
This is a stretch, but the marketing of the game needs to be more aggressive. The pricing is what the pricing is.
In defense of the pricing. I spend $9-12 for a movie, which will fully engage my attention for 2 hours. So, for me $6 is my full engagement entertainment value per hour. You could nudge it up, and add in a large diet coke, but that makes my case stronger. Now, Strat is not as fully engaging as a movie for as sustained a period of time, but... team construction/draft strategy, drafting, waivers, lineups, 9 weeks of box scores, playoffs (maybe)... at $20 I think I'm getting a better deal than movies. Even at $25.
EDIT: One more thing:
Assuming you can complete the sale, 1 glass of lemonade at 1 million dollars = way more money than a million glasses at a nickle a glass. But that's not really what we're talking here, is it. What we're talking is selling one hundred thousand chocolate bars at $1 a piece, or trying to get new customers by selling it for $.85 a piece. How many new customers will that gain?
I remain in the camp that the marketing of the game across TSN and SOM platforms and beyond is the way to grow the base. The trial offer is a nice attempt at "crack dealer" marketing, but unless you tell people about your promotion, your promotion is useless.
Last edited by
PotKettleBlack on Tue May 24, 2011 11:53 am, edited 1 time in total.