Are we paying more for less?

[Talleyrand]

I know, Leif, and I enjoyed reading your replies. I don't think it is unreasonable however to expect Shrapnel to lower the price of a game that has been out for a couple of years, even if there is no direct incentive for them to do that. People expect it to happen, and you in turn garner the sales of those customers who were on the fence and were not willing to pay full price for a game upon initial release. And as I said, I don't believe this game to be that much more a niche than many other notable strategy titles, whose prices have steadily fallen over the years.

Johan, I would pay 40 dollars for Dominions 3 at most plus shipping and probably 30 for Dominions 2, although I think 20 would be more reasonable for such an old game.

As a side note, please quit bringing up the manual when toting the price of this game. The manual is nothing more than a manual. Unless it has a strong piece of fiction inside that lays out the history of the world and its main characters that brings me a keen sense of entertainment, it does not impress me one bit how big it is. I do although appreciate the effort involved in its creation. But I don't pay extra for strategy guides (even for a game like Disgaea 2 lol) and I will not pay extra for a bigger manual, which is basically one way a lot of you are justifying the higher price.

[Talleyrand]

Sorry DF, didn't see that last reply. My thought process is that I didn't even think Dominions 2 was worth the price, let alone a higher priced Dominions 3 based off the same engine as part 2. I tried the Dom 2 demo but never purchased the full game because I was waiting for the price to drop. Now Dom 3 is here at an even higher price and Dom 2 has disappeared from their online store, placing me in the exact same dilemna I was in years ago with Dominions 2.

BTW, I like your signature. I'm a huge CroCop fan myself. I tried to get tickets to PrideFC's USA debut but that fell through. I'm looking forward to the next UFC when Sean Sherk and KenFlo go at it.

[moodgiesanta]

First of all I choose to believe that Talleyrand is not trolling at all because he hasn't said anything inciendiery and seems just to be speaking (typing?) his/her mind.

I think it's rather simple in the short run why they would keep prices high. Shrapnel knows its audience. The turn based strategy market is small, but I'm gonna take a leap of faith and say that it is older, which means it has more money. The kind of person who is going to buy this game is also the kind of person who is willing to pay a premium to fit their specific needs. In other words, lowering the price to go after a more casual gamer (in other words a gamer that is less inclined to buy this game, evidenced by them not buying at the higher price) is an illogical thing to do. Think about it: the more casual gamer that would be attracted by a lower price is exactly the kind of person to be put off by the graphics and complexity. In other words you're lowering your price to chase after a market that isn't there. In the meantime the folks that were going to buy it anyway at the higher price after being introduced to it are giving you less money.

There is no reason for them to simply follow suit with retailing practices for mass-market games because they are not selling mass-market games. They have no pressing need to clear inventory like a retailer (not to say they have no need at all to clear inventory but it isn't nearly the situation with a retailer where old product competes with new product).

There is also the following problem which has been alluded to but I guess I'll illustrate. Let's use some made up numbers and say that for the first 10000 games printed, the cost of the game to Shrapnel is 30 dollars including manufacturing. If they charge 40 dollars they make 100000 dollars in profit. If they charge 55 dollars they make 250000. That's hugely substantial. So that explains why they would start out at 55.

Now since this is software adding more copies sold decreases the cost per unit fairly substanially when compared to more "hard" goods like say a television. However Shrapnel, the folks with the data on sales and on their customers, have determined that the increase in sales for a lower price point doesn't make up for the loss in profitability even after the initial rush. If there is a market of 25000 copies at 40 dollars and a market of 15000 copies at 55 (assuming a cost of 30 per unit) it doesn't take a rocket scientist to figure out that you come out ahead charging 55. In fact the gain is 125000, a number which probably offsets the average cost decrease (the assumption of 30 per unit is not valid because the cost per unit is going to be less for the 25000 than for the 15000). Now these numbers are all made up but the point is that Shrapnel has numbers that *aren't* made up.

Of course the counter-point to all of this is, considering the steep marginal cost decrease once you recoup development costs, why not try and cash in? They lost money not charging less for Dominions 2 leading up to Dominions 3 if they had *any* inventory left, because the sales of Dom 2 after Dom 3 have got to be practically non-existent. They don't have any inventory left of course so that is a moot point VV

[Warhammer]

Talleyrand said:
I know, Leif, and I enjoyed reading your replies. I don't think it is unreasonable however to expect Shrapnel to lower the price of a game that has been out for a couple of years, even if there is no direct incentive for them to do that. People expect it to happen, and you in turn garner the sales of those customers who were on the fence and were not willing to pay full price for a game upon initial release. And as I said, I don't believe this game to be that much more a niche than many other notable strategy titles, whose prices have steadily fallen over the years.

It depends upon the situation. Dealing with a publisher is not the same as dealing with a distributor or a reseller. When dealing with the publisher, their cost of making the game is not going to diminish over time. As a result, the price is going to stay constant.

A distributor or retailer is a completely different animal and they are looking for turns on their inventory dollars. Therefore, after a game has been on the market for so long, they lower the price to recoup some of their initial investment.

Now, sometimes the original publisher will reduce the cost of their game due to inventory issues, but that depends upon the size of the publisher and other factors. Not knowing how much it cost to make Dom 2, I have no basis for why the cost of the game has remained high. I do know that for the past few weeks, it has been backordered, which means they don't have any copies available. Since the release of Dom 3 was imminent, I am not surprised the cost shown remained high.

Talleyrand said:Johan, I would pay 40 dollars for Dominions 3 at most plus shipping and probably 30 for Dominions 2, although I think 20 would be more reasonable for such an old game.

As a side note, please quit bringing up the manual when toting the price of this game. The manual is nothing more than a manual. Unless it has a strong piece of fiction inside that lays out the history of the world and its main characters that brings me a keen sense of entertainment, it does not impress me one bit how big it is. I do although appreciate the effort involved in its creation. But I don't pay extra for strategy guides (even for a game like Disgaea 2 lol) and I will not pay extra for a bigger manual, which is basically one way a lot of you are justifying the higher price.

I'm going to give you an example here:

A supermarket buys cans of Super Deluxe Root Beer for $.20 per can. They sell it for $.40 per can. They sell about 100 cans per week. Most Root Beer sells for $.30 per can. A customer comes up and tells the manager of the store that he won't buy the Super Deluxe Root Beer for $.40 per can, but he would at $.35 per can.

At 100 cans of sales per week, the supermarket makes $20 per week off of the Super Deluxe Root Beer. If they sell 101 cans per week at $.35 per can, they will only make $15.15 per week. To gain the one extra customer, they sacrificed $4.85 to the bottom line, not good business.

The reason why many people have brought up the manual is threefold. There were legitimate gripes about the manual for Dom 2, and there were plenty of people (i.e. more than one or two people) that claimed they stayed away from the game because of the manual. Second, the quality of a manual is one of production values that you said the game did not have a lot of (a 300 page reference book/manual for a game of this type is a must have to plan what you are going to do, much easier than searching for everything in game). Third, the cost of the manual has a direct impact on the cost of the final product. If a 300 page manual costs $20 per game (which would not surprise me, depending upon the quality of the graphics, etc.) then the price of the game is going to change accordingly.

I don't know exactly what you want to hear in answer to your post. You have bypassed several direct answers to your concerns or questions, yet you still say the same thing. If you are trying to get the price of the game reduced, it isn't going to happen at this point, and I highly doubt one person is going to make a difference to a price policy for a company (not a well run company at any rate).

I am not trying to be a fanboy or anything else, this is the first game from Shrapnel that I have bought. However, I completely understand how pricing is determined for products as I am the Sales and Marketing Manager for the company I work for, so I understand why many of these decisions are made.

[Nerfix]

Talleyrand said:As a side note, please quit bringing up the manual when toting the price of this game.

We can't, since the manual rather directly affects the manufacturing costs of the game.

[PhilD]

Talleyrand said:
Niche is no excuse, people expect game prices to fall.

So because people expect the price to fall, the price should fall?

Shrapnel aren't trying to conquer the PC gaming world and make every PC gamer buy their products, you see. Most potential PC game buyers certainly do expect the price of a game to drop after a few months - but those same "most" would not buy a game like Dom2 anyway, because the graphics are so primitive, and the box isn't shiny enough (I mean, there is NO box), and there are no voices lines, and so on.

The target audience is different, and it seems that Shrapnel decided that their targeted audience is mostly composed of players who are willing to pay a premium price for what they consider to be a good game - even though most other players would not consider it so, and would not even buy it at maybe $10. Apparently, their sales figure show they were not too deeply wrong. At least from here, I'm happy with the price.

Basically, the price tag has little influence on sales of games like Dominions, so there is little reason for the price to drop after a few weeks or months.

[Gandalf Parker]

Talleyrand said:
As much as I want to support Illwinter and Shrapnel, I can't bring myself to pay a premium for their products, and in that I think we both lose. Am I in the minority? Well that is the million dollar question, isn't it?

You do understand that asking that in the Dominions forum makes it likely that most people will not agree with you?

But even in the usenet strategy forums I had the same conversation. The person there also was not able to swing a majority.

I really do understand your viewpoint. As a player viewpoint I think its valid. But trying to sound like a nice guy talking to the publisher on a peer level, I dont really think so. It has a chance for some gains but I still feel it would be a risky thing for Shrapnel to try with this version of Dominions. This is a major release both for Illwinter and for Shrapnel. Gambling with pricing might not be a very responsible thing for them to do right now.

I wish I was better at math to put this in a formula but I now that you are talking about cutting their profits probably more than half (at least). And I know that it would take twice as many new buyers to make up that difference, much less make a gain above that to make it worthwhile.

[Neophyte]

Talleyrand - You said that the manual is just a manual. Based on a small sampling (one scanned image, my preorder shipped today and obviously is not in my twitching hands) it seems to me that the manual is less of a "push these buttons, make game work" manual typical of games these days, but more of reference guide to the features (features = units, spells etc in this context) more similar to a programming language reference guide or an extremely well written after market strategy game guide.

You have discussed production value. I am in the initial planning stages of a small business. One of the most important things I am trying to determine is what my minimum sales volume needs to be to not lose money (I want to start very small and continue to remain employed full-time). This very planning makes me poignantly aware that Shrapnel, having much smaller sales volumes than someone like Atari, or even Atari games sold just at Wal-Mart, must do a similar analysis, only they need to make money beyond their cost of production in order to pay their employees.

Based on my perception of the tone of the forum posts of Shrapnel staff, it seems that they are surprised at the level of success that Dom3 is garnering for them. I agree with the poster who mentioned that from an economic stand point this means that the game is perhaps underpriced.

Lastly, just from playing Dom2 (which I caught on sale at $32.95 - Shrapnel does periodically reduce prices) I would say that the replay value is definately in the top 5 games that I own. In making this assessment I am combining price per unit time spent playing the game as well as the intangible of personal sense of enjoyment per unit time spent playing the game.

Thank's for letting me share my thoughts regarding this thread.

[Bloodstar2]

Gandalf Parker said:

You do understand that asking that in the Dominions forum makes it likely that most people will not agree with you?

But even in the usenet strategy forums I had the same conversation. The person there also was not able to swing a majority.

I really do understand your viewpoint. As a player viewpoint I think its valid. But trying to sound like a nice guy talking to the publisher on a peer level, I dont really think so. It has a chance for some gains but I still feel it would be a risky thing for Shrapnel to try with this version of Dominions. This is a major release both for Illwinter and for Shrapnel. Gambling with pricing might not be a very responsible thing for them to do right now.

I wish I was better at math to put this in a formula but I now that you are talking about cutting their profits probably more than half (at least). And I know that it would take twice as many new buyers to make up that difference, much less make a gain above that to make it worthwhile.

Well, I knew that you are biased and not very bright, but you tend to be a liar as well.

I didn't wanted to swing a majority on Usenet. I just BTW. bought the game.

But, I reserve my right to say a few words ABOUT THE PRICE.

PRICE IS SET TOO HIGH. PERIOD. All arguments that I have read are in vain.

It is clear fact that Shrapnel was carried away a little bit.

I bought Dominion 2 at 50 US$ and 3 $ postage to Europe. Now is 55 $ and 9.35 US$ postage... great

Now, if someone wants to buy me, a regular customer, go ahead....

But, I will say few words about the price. 55$ is too high price, argument that you will spend 1000 hours playing it blah, you will spend 1000 hours playing Heroes 5 as well. Maybe some argument is there about size of the manual (I still wait for the game to arrive).

Argument that game will sell less and crying how this is niche game is of no interest to us, regular paying customers! Mind you, I deeply believe that this game should be priced at 40 US$-45$ top. 50$ is also too high, and 55$ way too much.

Matrix Games is also inflating their games like TOAW 3 for 40 US$, a almost same game from 2000. AD. and full of bugs (COW is better).

So, I give Shrapnel THUMBS DOWN on setting this game and also to developer also THUMBS DOWN because they should be aware that price is set too high.

You just got BIG reputation down in my eyes. Yes, I bought the game but next time I won't if this greedy politics at Shrapnel will continue.

Thank you for listening.


Mario

[Annette]

Hello Mario,

May I be the first to welcome you to our forums. You certainly do have the right to state your opinion about the price or any other issue regarding the game or our company. You also have the right to disagree with another forum member. You do not, however, have the right to make accusatory statements about another forum member. This is not usenet. This is our company's forums where we expect participants to treat each other with a measure of respect. There is a link at the top of this page called "board rules". I ask that you read it. I am happy to see you here, but I have to ask that you "play nice." It's what we expect of all our members.

As to your post, there are several interesting discussions on various boards about this issue. I think I'd like to hear your impressions once you've received the game and play it a bit to see if your opinion remains the same. And we do thank you for your order and the vote of confidence it portrays. You've been a supporter of our developers in the past, and we're happy to hear your constructive feedback.