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Topic: Why are group buys so successful?

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  1. #1

    Why are group buys so successful?

    I'm not trying to make any particular statement her, just curious.

    Ok, here is my question to all:

    Are group buys so successful because:

    A. The price is down to a level that more people can afford, and hence more people buy it.

    B. The group price compared to the regular price is such a bargain, that people feel compelled to buy it because of the "bargain" aspect of it.

    If people feel that A is the reason the majority of people are buying these products, then this makes a strong case for developers lowering their prices. IE, drop the freakkin' prices already and make more money (many have been arguing that one of the main reasons for piracy is the unaffordable cost of the software).

    If people feel that B is the reason, then perceived value is everything. In the sense that the strategy here is to release a product at a very high price, just so that by dropping the price on special events, people won't be able to resist the incredible perceived bargain. This also means that if over a year ago, Gold came out costing $398 from the getgo, probably not many more people would have bought it than the people who bought it for $1k.

    Any thoughs?
    >>Kays
    http://www.musicbykays.com
    Music Composition for Feature Films, Television and Interactive Entertainment

  2. #2
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    Re: Why are group buys so successful?

    I think you nailed the main drivers Midiphase.

    I must say that one naughty thought had gone through my head and that was that maybe EWQL got the wind of something new coming out at NAAM that might affect them? Maybe 'VSL- Affordable' ?? I wouldn't be the slightest bit surprised.....

    There's another thought, which is that once folk are locked into Gold then they almost have guaranteed customers for the Pro upgrade Group buy a year hence! They are mighty shrewd businessmen at EWQL.

    Frank

    PS Do I risk missing the bargain of the century for something that might not happen....Naaah!

  3. #3

    Re: Why are group buys so successful?

    The horns came out for a minute when I thought of how interesting it would be to see GPO versus EWQLSO and VSL sales figures. Then I thought that it would only make everyone upset to see the figures. Regardless, everyone would be left speculating why each one sold what it did. I don't know them (would love to though), but they would represent the sales market groups you are talking about. However, you have to consider that consumer, pro-sumer, and professional will all pay different prices for what fits their needs.
    Jonathan Kerr
    J.Kerr Music, Inc

  4. #4

    Re: Why are group buys so successful?

    I would like to see sample library developers permanently discount their products over time.

    With other retail products, one can normally expect that prices will be lower as time goes on (i.e. products have a "life cycle"). With sample developers it appears that they try to hold on to their original retail prices forever.

    Sample developers of course have the right to sell at any price they want, but they would be able to "move" older titles with additional discounting. For example, I think a lot more Spectrasonics AKAI sample Libraries would sell if they would lower their prices down from their long-standing $199. I know there are a bunch of their AKAI libraries I would buy if they were offered for $99. The same is true for many of the East-West GIGA titles.

  5. #5

    Re: Why are group buys so successful?

    I think group buys are a successful for a combination of reasons A and B. All of the products in group buys here (Old Lady, Emporer, and EWQLSO Gold) were all products that i wanted. I was planning on buying the PMI Gold Bundle sometime early next year, but the I could get both for half that price now, so I did so. I had no intention of buying Gold. If I was going to drop 1000 bucks for a library, I was probably going to go with VSL Opus.

    I know a few other people who bought some libraries in the group buys for reason A and for reason B (mainly with Old Lady, didn't really want it that bad, but for the price they figured it would be a good buy).
    Tim

  6. #6

    Re: Why are group buys so successful?

    Quote Originally Posted by Martin Hines
    With other retail products, one can normally expect that prices will be lower as time goes on (i.e. products have a "life cycle"). With sample developers it appears that they try to hold on to their original retail prices forever.
    GOS and SISS make a great comparison. Both were the same quality and the same price a couple of years ago. Nowadays GOS is less than half of the the original price and better quality after a couple of updates. Both were expensive when they were announced (as many SISS reviews stated back then) but today SISS is absurdly overpriced when comparing to the competing libraries.

    Quote Originally Posted by tgfoo
    If I was going to drop 1000 bucks for a library, I was probably going to go with VSL Opus.
    I did and I'm very happy with my decision. The VSL strings aren't as good as the rest of the library and there are more percussions in the EWQLSO Gold than there are in the Opus1. Still the Opus1 woodwinds and brass are by far superior to the EWQLSO winds and the legato tool makes also the strings very useful even without the natural ambience. I concidered the Gold because of the cheap group buy price (even without them giving us the Silver owners a discount, group buy Gold + Silver for Gold owners is about $450 and Silver + Gold group buy is about $700) but I think I'll pass as I can get the True Strike and a nice string library (Ultimate Strings or Session Strings) for the same price. Those strings stacked with the Opus1 strings make a killer combination.

  7. #7

    Re: Why are group buys so successful?

    There are psychological factors at work as well. By maintaining a high price VSL gives the impression that it is a "prestige" product. It is often percieved as highly superior product simply because "for that kind of money it MUST be good!!" And maybe they sell far fewer copies, but the high profit margin makes up for it. On the other hand, GPO is perceived as a populist product because of its low retail price point. I'm not saying that GPO can do what VSL does, but it is interesting how a high retail price affects perception of a product in the minds of a certain segment of the public. I think BMW is a nice car but I don't think they are worth what people give for them. Especially when it's time to pay $150 to get your oil changed

  8. #8

    Re: Why are group buys so successful?

    I don't see how VSL could do what they do and charge less, in fact I don't understand how they can do it period. It's not just perception that it's a premium product, it's reality. They spend hours upon hours sampling all those instruments with painstaking attention to detail.

    I also think Gold is a pretty great bargain at $1000, and I worry that charging $400 for it will lower peoples' expectations to the point that big sample libraries won't be possible in the future. Hopefully I'm wrong.

  9. #9

    Re: Why are group buys so successful?

    I think that an other reason why developer can sell so much cheaper is that they sell for a large part to people who would not have bought at the higher price

  10. #10
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    Re: Why are group buys so successful?

    Quote Originally Posted by buzby
    I think that an other reason why developer can sell so much cheaper is that they sell for a large part to people who would not have bought at the higher price
    Yes that´s the point!!! its always better sell it to 80 People for 400,- than to 10 for 1000,-.....

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