Pricing synopsis

[Kieren]

Towd-

There is no question you get more people if you lower the price. The question is whether you can make money with the lower price. You don't have all the information to make that decision, neither do I. If HTC decides to research (in whatever method they see fit) the possibility of different price structures, I think it is only fitting we wait and see what comes of it.

[-towd_]

i really think that the numbers might be the real problem. ah is from what i have seen worlds ahead of the competition .  and being a long time flight simmer they day i fly a new sim the old one is out the door.(guys at work all bought mscombat sim 1 i cant even stand to play the monstocity) there are several large communitys of people who would transfer over quite quickly .  even at my own workplace ( i sell computers ) there are several people, like 8 or 10 that wont even try it at the price it is now. my real objective is to get more people in the game . as it becomes more fun with more numbers and a larger community. also  new games are comming and there will be a exodous when the new one ( guess the name ) comes out as people are not gonna keep a 30 buck subscription and pay another 20 or 30 for a similar game  really i just wish i could get my freinds to play  

[BigBen]

Pyro,
 
Why don't you tier the pricing and create term commitments?  For example, introductory rate of (new subscriber) $9.95 a month for three months, then term rates kick in.  Month-to-month $29.95.  One year commitment, $24.95.  2 year commitment, $19.95 per month.  Early termination would incur a charge of something like 50% of the amount remaining under the service agreement.  That way you won't have people cancelling on a whim until the next version comes out, etc AND it will give you revenue stability in the face of any competitors that may appear on the scene.

Just my thoughts.

BB

[This message has been edited by BigBen (edited 01-29-2001).]

[This message has been edited by BigBen (edited 01-29-2001).]

[NHFoxtro]

Now that sounds like something that would probably work. Good Idea BB

[This message has been edited by NHFoxtro (edited 01-29-2001).]

[SOB]

 

Originally posted by AKSeaWulfe:
Then you factor in RAM and HDD storage and CPU power to keep track of all the players in the MA, and their score.

I think SW has a point here.  I'd bet it takes at least 3 employees just to take care of RAM alone!  

[Moose11]

sounds like BigBen sells cellphones.  

[BigJim]

Pyro while I cannot argue with your right as a company to "try" any method you wish to get "solid" information, the reasoning seems somewhat like the thinking of some medical science that thinks that sacrificing some humans for the good of mankind is acceptable.
  While the results may help you make your decisions, the "bad" feelings created by the process on the part of some "loyal" followers
is in the words of the bard "the rub".  I hope that all the flak that you guys took was worth the demographics that you derived from the test.  I do appreciate your taking the time to at least explain the thinking of HTC, which at least lessens the pain felt by some of us who did not recieve the benefit but have been here with you since day one.

[K-KEN]

Hey ya BB....These are good ideas.  However, why not do them like AOL is doing me.  $9.95 a month for say 5 hours free play...and $2.00 per hour thereafter.  $19.95 for 20 hours of free play, and $2.00 an hour thereafter.  And $29.95 for unlimited play.  Unfortunately, it still makes the server/servers upgrade, bandwidth additional cost, and potential HTC personnel burden higher.  I am not so sure, that this angle wasn't already presented some time back.  

 

Originally posted by BigBen:
Pyro,
 
Why don't you tier the pricing and create term commitments?  For example, introductory rate of (new subscriber) $9.95 a month for three months, then term rates kick in.  Month-to-month $29.95.  One year commitment, $24.95.  2 year commitment, $19.95 per month.  Early termination would incur a charge of something like 50% of the amount remaining under the service agreement.  That way you won't have people cancelling on a whim until the next version comes out, etc AND it will give you revenue stability in the face of any competitors that may appear on the scene.

Just my thoughts.

BB

K-KEN

 http://www.cutthroats.com/


 

[BigBen]

The benefit of a tiered rating structure associated w/ some sort of commitment is that you have a guaranteed revenue stream over a period of time.  Therefore, you know that have a chance to recoup any infrastructure and/or capital investments you make to support the larger subscriber base.  You also have an easier time managing churn of the subscriber base.  Best of all, you create a real incentive for a subscriber to sign a longer term. So let's pretend "CHogKila" joins today and pays $29.95 per month, and 6 months later he gets bored and leaves, you've made $180 dollars.  If , on the other hand, he signs a one-year agreement at $24.95 you've guaranteed $300 of revenue AND reduced the chance that you'll have to waste time and resources re-registering the guy when he deceides that WWIIOL sucks and he wants to come back to AH.  Reducing churn is everything when it comes to success.  And yes, I do work in telecom (but not cell phones  
BB

[Downtown]

There is an additional icentive to subscibe to a long term plan also "Savings" for the customer.  As BB stated, $24.95 a month for a 24 month Commitment saves you $120 over two years.  At the very least, even if HTC doesn't change the monthly Flat Rate subscription, a long term commitment plan like BB suggest should be STRONGLY considered.  (I wouldn't go more than 1 year though.)

Pyro,

I believe there was a way that you could have informed the community that you were going to be doing some testing, designed to find a way to possibly lower the subscription price.  I understand why you didn't inform the community.  I can't tell you what I would have said and regardless you would have offended some members of the community.  I certainly was more bothered by Badger making an issue out of it here than by your not making an announcement.

Would it be possible for you to give us a rough estimate of what the data your pricing survey suggested.

Also, with a possible change of pricing (lower I assume) do you expect a massive influx of new subscribers, that would really cause a major outlay initially on your end.  Is there a possibility of some form of tiered expansion (I don't know how this could be done?) that you can consider, perhaps Skuzzy could better answer that question.

Crossing my fingers for $14.95 a month.

------------------
"Looks Mean as Hell! Clare Lee Chenault.
 
When?
"Downtown" Lincoln Brown.

[This message has been edited by Downtown (edited 01-29-2001).]

[K-KEN]

Well, BB and Downtown, contrary to what you propose, the only way to accomplish the contractual agreement is up-front.  IMHO.  Having spent the last 25 years in the retail environment, and with todays' laws and loopholes, customer satisfaction issues and strategies....you would never collect the balance, unless it were up front.  You only have leverage if you have their money.  Otherwise, litigation will eat up your business.  Ya can't afford to take someone to court for $100.00.  You lose that in productivity alone.
    I disagree with the plan, unless paid up front.  It makes MY plan look better on a month to month basis.  I'll explain.

First....a casual user at $9.95 a month, with 5 to 10 hours of free time....won't increase the bandwidth..because if he does, he pays the additional by the hour.  <in your plans-this could be a trial period too>  We may be in agreement there too.  If he flies 10 hours over his allotted time, he pays $29.95.  15 hours over, $39.95. Tough break, ya might consider unlimited.

Second....19.95 a month and say 20-25 free hours.  At 10 hours over, $39.95.  At 15 hours over, $49.95.  Another tough break. Again, limited hits on the server, slight hit on bandwidth, and possible personnel costs.  BUT it's priced right.  

In this scenario, you can build a customer base, but limit access.  I am sure that would be temporary.  75% of the folks would convert to unlimited, the others would have a minor share, and if they created a bulge in the network and on the servers, then the costs could be recouped by the additional hourly rate.  At least, I think that sounds workable.  I am sure HTC has looked at these and many other options.

My experience in the Body Shop business as a manager, has had me picking up sandpaper on the floor, rolls of masking tape in cars or on the floor....and counting them monthly.
A business loses money on waste, theft, carelessness, and complacency.  Every penny needs to be counted and accounted for, or the business will fail. (mostly small businesses)
You have to watch the bottom line every day, not once a month or annually.

Oops.... was on a roll.  That IS a bad thing!  

K-KEN

 http://www.cutthroats.com/


   



[This message has been edited by K-KEN (edited 01-29-2001).]

[leonid]

So, who has vodka in the freezer?

Oh, good post, Pyro  


------------------
leonid, Kompol
5 GIAP VVS-KA, Knights

"Our cause is just.  The enemy will be crushed.  Victory will be ours."

[Fariz]

 

Originally posted by leonid:
So, who has vodka in the freezer?

I do   Two bottles of "pshenichnaya"  

[Downtown]

K-Ken,

I would like the opportunity to perhaps get a one year subscription at a reduced rate.

I.E. pay $249.95 for a year.  Or even $300.00 for a year.  If you pay for 10 months in advance you get the next two free, something along those lines.

------------------
"Looks Mean as Hell! Clare Lee Chenault.

When?
"Downtown" Lincoln Brown.