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Monday, July 06, 2020

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Taylor

I remember an interview with the developer of the very successful indie game The Binding of Isaac where he was asked why he would choose to participate in Steam sales that discounted the game by 75% -- a pretty similar ratio to a lot of FLF items (200->50) I've personally bought.

He said the discount multiplied his sales by *60* (not 60%, but x 60). I suspect it's a similar situation for a lot of FLF sellers, especially since many tend to discount slightly older items or uncommon colors that may barely be selling at all on their own.

camilia fid3lis nee Patchouli Woollahra

The "Marginal Cost" I am referring to in the original comment is the extra cost needed to pump out one more unit of the same product. I already referenced the costs that would be incurred regardless of how much of the product is sold - the R&D, the modelling and scripting, tier for inworld shop space, marketing, ensuring bloggers get their paws on free product (Blogotex costs money to maintain) - but once all that is past, when you buy a dress in SL inworld, the merchant incurs basically nothing in the way of extra costs for most products unless they require some form of service external to the LL-provided grid's servers (e.g. Smartbots bot script execution, networked fishing game systems) . The only way marginal costs for a product could fall to less than zero is if LL paid creators a subsidy on every unit sold, a situation that is really impossible.

dan

Yes, the effect on your sales day is good! You get a good extra, however - noone talks what happens day after, two days after, week after. From my personal experience - your sales are not becoming bigger thanks to all the people who rushed in for 50L$ product. Very few % of those people actually are willing to spend anything above 50L$. Some do, but that's a minority. Thing is that these kind of events train people to pay less and less money per product. It becomes a norm. To a degree that seeing anything above 500L$ mark ignites a major hesitation in them, no matter what quality the product is. As I pointed earlier, there's only that much space left before noone will want to pay anything at all and they would be trained to get everything for free! You're quiet near sighted in thinking that this kind of event happening regularly will not cause any problems in a long run. Look around, compare prices you were able to sell your products 3, 5, 8 years ago.

Blaise Glendevon

Dan - the Second Life fashion community has shown itself more than willing to pay top price for brand new items. "My favorite color is fatpack," is a saying I heard as a newbie in 2010 and have continued to repeat even now. The issue you're whatabouting isn't a problem. The people who care to have new releases at full price crowd the shopping events first day of release and the people who are looking for discount get their needs met as well.

You really should consider the market before you mansplain things.

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