Quote:
Originally Posted by HarryT
They have not considered simple economies of scale.
If you spend $10m developing a video game, and you sell 1 million copies of it, you'll break even selling it for $10 a copy (ignoring distribution costs, etc).
If you spend $10m developing a CAD package, and you know that you're only going to sell 1000 copies of it, you need to sell it for $10k a copy to break even. You couldn't sell it for $10, because there aren't a million people in the world who'd want it. It's doubtful that selling it for $1k rather than $10k would get you 10x more sales.
The point is that software aimed at professionals - CAD packages, video editing suites, PhotoShop-type applications, etc - are generally bought for their functionality rather than their price. If I'm a graphic designer charging clients $1000 a day, it's irrelevent to me whether PhotoShop costs $100 or $1000 - it's a tool I need to do my job and I'll buy it whatever it costs.
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...actually acknowledge any of what I said, as opposed to dismissing it?
If what you are selling does not have the value to your intended target, its not going to be paid for. The difference is, that in DigiWorld here...they can get it anyway and I think this is the part that makes everyone all mad.
You want to know how to reach these people? Listen to what they are telling you. If they say "I wouldn't pay more than $3.50 for an eBook" and you want to sell it for $10.50...they aren't going to pay for it. Its not worth $10.50 to them...and there will be more of them than us. Likely sooner than later.
How much of that $10.50 (or whatever) does it cost to digitally duplicate these things?
As I posted before, the risks of digital products are not equivalent to physical ones..even after R&D. Simply producing the product adds more risk because it is an adtional cost far above "digital warehousing"...and again, you are dealing with people that know this, and will find it suspect still.
As much as the collective "you" feel they don't respect your "property rights" (when in fact, they are distribution rights, but...) "they" feel you are "ripping them off" by charging "way more" for your app in say a 5-10 person little company for a thing than a 200-person team on a game title.
Now if you just don't care, or can rationalize it away, or do the "but Daaaaad I want a pooonnnnyyyy" thing and still turn a buck...enjoy it while it lasts
If what you develop, or write or whatever isn't on the same "value scale" (use their criteria) then its just not going to happen.
And sure a shop that charges $1K/day per client isn't going to have a problem with this...assuming thats your target. it still doesn't really change the current and more importantly, *emerging* market valuation for digital products.
The big failing here is that like record companies, a lot of people that (IMNSHO) should know better with regards to digital media are falling into the exact same trap as they did...the old model cannot work, it *will not* work and that is, essentially that.