GanisPhel Posted January 27, 2016 Share Posted January 27, 2016 I was curious to see whether the prices for the CM have been played with at all to see if this is the maximum profit gain for Bioware? At a cheaper price you get more sales but less money per sale. At a more expensive price you get less sales but more money per sales. Have there been any attempts to find out whether a cheaper/more expensive normal price for cartel items would increase your profit? I ask because I feel like the prices have not been messed with much besides with sales and there may be a price that increases the overall profit long term. Of course I have suspicions that a lower price would improve profit but I would be willing to risk higher prices in order to come to that possible conclusion. While I buy CM items I feel like I would spend more if things were not so high. TLDR: So I was wondering what metrics if any were used to make CM prices. Thanks in advance Link to comment Share on other sites More sharing options...
SteveTheCynic Posted January 27, 2016 Share Posted January 27, 2016 "I'll reduce the price and make up the profit by increased sales volume" is a choice that requires careful analysis of the elasticity of demand - how much the quantity demanded is affected by the price - and the per-unit profit - selling price minus production costs. If price changes produce huge swings in volume demanded - elastic demand - then it is quite possible to increase profit by reducing price, especially, as here, if the per-unit production cost is basically zero. There is a near-zero cost to produce another copy of, say, the Aratech Rose speeder, so low that in a very real sense the price is entirely profit. Would they sell twice as many if they halved the price? (That is, would the total income and consequently the total profit be doubled if they halved the price?) There is only one way to find out how many they would sell if they reduced the price (and in any case the analysis is complicated by market saturation issues), and that is to actually try reducing it to see. Link to comment Share on other sites More sharing options...
CrazyCT Posted January 27, 2016 Share Posted January 27, 2016 (edited) Similarly, if the product becomes too common, will people still want it, or does the rarity make it worth the cost? On the other hand, if there are more around, essentially advertising the product, will more people see it and want it? There are a lot of variables that can't be worked out by hypothesising. Like Steve said, there's only one way to really find out. Edited January 27, 2016 by CrazyCT Link to comment Share on other sites More sharing options...
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