So, I purchased FE when it first came out at full price, and about a month later it was discounted by about 32%.
Over the past week I've received 2 promotional emails from SD, one offering certain programs for $10, and another offering a 10% discount if I take a survey.
First, it seems like this agressive discounting cheapens the brand. After I saw two promotions in a week from SD, I was reminded of those promotions my wife is constanly receiving from those discount clothing stores, where they try any and every gimick to get customers into the store.
I don't understand this pricing strategy/discount promotion. As a consumer, I now know that I just have to wait a month or so to get a substantial discount on SD games. And if I'm inclined to purchase Fences, Blinds, etc, again just wait it out. It has the potential of making consumers focus on price rather than quailty, and possibly bring to mind the value they are receiving. And then there is the possible resentment (bad will) by discounting the product after the loyal customers paid full price. After all, every day that I sign into Steam, an offer(s) pop up on deep discounted software.
Food manufacturers can get away with two tier pricing by putting two different labels on the same product. For example, sell a can of soup at Whole Foods for a high price, and switch the label and sell it to a mainstream supermarket for a lower price. But SW coomapies can't do that without long term consequences (e.g. selling the game for $40 to fan boys and $27 to everyone else). the fanboys will start to get miffed after a while.
Is this the new normal? I remember with Civ4, retailers were asking (and getting) full price for it easily three years after it's release, and SD slashed FE's price a mere month after it's release...
I guess it's all about finding the ideal price point, for a different range of consumers. That is, which price generates the right balance that results in the greatest volume and returns the highest margins. If you price too high, volume suffers, and too low and margins decline. But if you "train" customers to wait , then the software companies will be the losers, because in the end, games are a luxury. Heck, as nice as they are programs like Fences and Blinds are "nice to have" but not necessary. And playing these pricing games will turn people off.
Just my 2 cents.
