Upgrade your account to a Community Supporter account and remove most of the site ads.

Reply to thread

Message: <blockquote data-quote="Snarf Zagyg" data-source="post: 9166808" data-attributes="member: 7023840">Now I am truly confused by whatever it is you are saying.When we are talking about ROI (return on investment) ... that's a very specific concept.In other words, imagine the following:A. Produce 5 books at a cost of $1 each and sell for $10.  ROI=- B. Produce 10 books at a cost of $2 each and sell for $10.C. Produce 20 books at a cost of $3 each and sell for $10.For A, you have a cost of $5, revenue of $50, and profit of $45.  ROI= 900%For B, you have a cost of $20, revenue of $100, and profit of $80. ROI= 400%For C, you have a cost of $60, revenue of $200, and profit of $140. ROI= 233%Now, imagine that the company has another project that has an anticipated ROI of 300%. In that scenario, they would want to produce 10 books. On the other hand, if their only alternative is to stash the cash into cash equivalents, then they would proceed with 20 books.This is why I am completely confused! Generally, scale matters when it comes to ROI. My example seems weird because, normally, it is relatively easy to increase output of a product with a lower cost (not always, but usually). A lot of your fixed costs ("keeping the lights on," "labor") stay the same, and you can usually get slightly better rates for doing things in bulk. So, arguably by looking purely at ROI at a single point in time (and certainly looking at revenue) WoTC should be making more books. But the reason they aren't doing that is because they adopted a strategy ... one initially born out of desperation, mind you, but continued ... to protect the long-term viability of the brand in terms of the books.And, to be honest, the monetization of D&D for increased revenue is largely occurring in areas that aren't book-related. Computer software, licensing for TV and movies, DDB, toys, etc. Again, I express no opinion on this, but I am seriously confused by your use of ROI as you have been using it.</blockquote>

Verification