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<blockquote data-quote="frankthedm" data-source="post: 4950837" data-attributes="member: 1164"><p>Yeah, But it can be an effective price strategy. Ya see, not everyone out there is a savvy consumer. Some will buy no matter what the cost, some will pay extra, others will pay a reasonable price, others will buy only a value, some won't buy it unless the price is rock bottom. Figuring out how to set the price to make the most profit is tricky. But since there is PLENTY of anecdotal evidence that an unfortunate portion of Warhammer Fans and their money are soon parted, high-balling the price sure sounds effective to me..</p><p></p><p>Pricing higher than is needed, means a greater profit per unit sold, which for a niche market product, with fewer people to sell to, can work real well.</p><p></p><p>If A company can make $25 profit per unit sold, 1000 sold is $25000. The same amount can be made on selling 2500 units at a $10 profit, but there is no guarantee enough sales will be made. Also charging the higher price can add a perceived value to some consumers <img src="http://www.enworld.org/forum/images/smilies/ponder.png" class="smilie" loading="lazy" alt=":hmm:" title="Hmmm :hmm:" data-shortname=":hmm:" />.</p><p></p><p>And a unit sold to the company means sold to the store, not sold to the end consumer. That means as long as they ship it out the door, that is profit for them, even if the FLGS has it collecting dust on the shelf.</p></blockquote><p></p>
[QUOTE="frankthedm, post: 4950837, member: 1164"] Yeah, But it can be an effective price strategy. Ya see, not everyone out there is a savvy consumer. Some will buy no matter what the cost, some will pay extra, others will pay a reasonable price, others will buy only a value, some won't buy it unless the price is rock bottom. Figuring out how to set the price to make the most profit is tricky. But since there is PLENTY of anecdotal evidence that an unfortunate portion of Warhammer Fans and their money are soon parted, high-balling the price sure sounds effective to me.. Pricing higher than is needed, means a greater profit per unit sold, which for a niche market product, with fewer people to sell to, can work real well. If A company can make $25 profit per unit sold, 1000 sold is $25000. The same amount can be made on selling 2500 units at a $10 profit, but there is no guarantee enough sales will be made. Also charging the higher price can add a perceived value to some consumers :hmm:. And a unit sold to the company means sold to the store, not sold to the end consumer. That means as long as they ship it out the door, that is profit for them, even if the FLGS has it collecting dust on the shelf. [/QUOTE]
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