![Smile :)](./images/smilies/icon_smile.gif)
i love animes too, and i also think there cost too much. One DVD 25-30 €.
but i think, when i will have a little bit more money, i will buy some
![Wink ;)](./images/smilies/icon_wink.gif)
PS: if my englisch is not so good or something is wrong, please don't be angry, i'm from germany
![Wink ;)](./images/smilies/icon_wink.gif)
That works, to a point. However, it's not so simple. For one thing, a low price can make someone think "it's cheap, it must suck". For another, dropping prices doesn't always help sales enough. More things can go wrong, but you'd have to ask someone who's formally studied economics for that.DocturKnowles wrote:I understand the whole licensing, dubbing, packaging, etc. thing. But wouldn't it be more lucrative for the distributor to charge less for it, thereby selling more of them?
Lowering prices would also lower profit, therefore not making enough money to keep production up. It's simple cost and demand. Like you said, people would think it's cheap, and not buy it. Sales would go down, the company would lose a ton of money, and customer satisfaction would be at an all-time zero.Kalium wrote:That works, to a point. However, it's not so simple. For one thing, a low price can make someone think "it's cheap, it must suck". For another, dropping prices doesn't always help sales enough. More things can go wrong, but you'd have to ask someone who's formally studied economics for that.DocturKnowles wrote:I understand the whole licensing, dubbing, packaging, etc. thing. But wouldn't it be more lucrative for the distributor to charge less for it, thereby selling more of them?
Lowering prices does not automatically equate to lower profit. Sometimes, lowering prices leads to a significantly higher sales volume. This is sometimes referred to as "making it up on volume". Sometimes it works. It depends on the specifics of the supply and demand curves.Aethia wrote:Lowering prices would also lower profit, therefore not making enough money to keep production up. It's simple cost and demand. Like you said, people would think it's cheap, and not buy it. Sales would go down, the company would lose a ton of money, and customer satisfaction would be at an all-time zero.
I never said it would always be negative. I was explaining what you meant when you said that lowering prices could be a bad thing.Kalium wrote:Lowering prices does not automatically equate to lower profit. Sometimes, lowering prices leads to a significantly higher sales volume. This is sometimes referred to as "making it up on volume". Sometimes it works. It depends on the specifics of the supply and demand curves.Aethia wrote:Lowering prices would also lower profit, therefore not making enough money to keep production up. It's simple cost and demand. Like you said, people would think it's cheap, and not buy it. Sales would go down, the company would lose a ton of money, and customer satisfaction would be at an all-time zero.
Besides, I said that a low price can have that effect. Not will. The difference is rather important.