Thursday, November 22, 2007

Pricing

Might as well state it up front:

I think some designers wares are overpriced. I think some are overpriced for the quality and I think even some high quality designers are overpriced. Usually it's in the range of 25 to 30 percent but I've seen some that I believe are overpriced by about 50 to 60 percent.

Now admittedly most of the "overpriced designers" do have some lower priced wares, but I've always wondered if they've read the Lindens own data on in-world purchases, the gist of which is this: most purchases in SL are of goods priced L$200 or below. The number of pople willing to by tiems priced at L$500, L$1000, or more is actually relatively small. Which may be why the Japanese designers are keeping their prices lower, making up for the lower prices in selling mass quantities of goods. L$20000 is the same amount of money whether earned form selling 100 items at L$200 or 40 items at L$500

Perhaps experimentation is in order, but I think the Japanese designers have the right idea, quality goods at lower "don't have to think about it much" prices. I personally try to have a budget in SL that I stick to in regards to Lindex purchases which isn't very high. If I had steady income from SL I'd spend more. But for me the L$200 price point is a marker betwee "just click and get it" and "spend some time thinking about if I really need or if there's something I need more"

I understand designers have rents, fees and design time to consider which is why this is a touch ysubject. Again, some experimentation might be a good thing, to see what works. I know some designers have budget lines and deluxe lines kind of like how Old Navy and the GaP are the budget and higher priced stores within their overall company.

4 comments:

eloheliot said...

Hiya, CronoCloud ^^. I'm a long-time lurker, but I really like the fair yet personable way you present your views and opinions of various aspects of SL.

I agree with you about high-priced items--I'm usually reluctant to spend over L$1000 on anything in-world--I guess it's something to do with the way the in-world L$ sounds (e.g. $1000 seems like such a huge amount versus L$200).

However, I think that perhaps part of the rationale for charging higher prices is similar to why it works in the real world: status (e.g. if few people can afford a product, it becomes a coveted item). Likewise the inverse is also true--many SL freebies, relegated to the realm of newbies and regardless of their quality or construction, tend to be seen as less-desirable because of their quotidian and ubiquitous nature.

But, (back to your closing argument) yes, the difference between a L$200 item and a L$500 item is a few real U.S. dollars--a marginal difference--it doesn't make much real-world sense that creators should limit their potential audiences over such trivial amounts. Creators would make more by doubling their audience rather than by charging double--mostly because the demographic that will pay double just isn't there.

Ordinal Malaprop said...

Yes, I quite agree. I am not the most assiduous of fashion consumers but when I do feel the need, (a) I demand the highest quality and (b) I am not concerned about the price (rent and clothes are the only things I spend L$ on). Yet I refuse to buy things over a certain price because I just do not like to feel that I am being ripped off.

L$200 I consider pretty cheap and I would buy a number of these without thinking too hard. Over L$300, I start to think "is this worth it?" Over L$500 I am unlikely to buy unless it is a proper, complete outfit containing several components which I can mix and match with other items. And, well, L$1000, no, I am not going to spend that much on an outfit - it would have to be completely astounding and reusable in all sorts of situations.

The fact is that I would buy, say, three L$400 pieces from someone from whom I would not buy one single L$1,200 outfit, because I know that the L$400 pieces could be used for different purposes.

I know this for my own sales and almost never have anything costing over L$400 (and I would challenge any designer to tell me that they had put more work into a dress than I had put into a L$400 scripted item - I think not, my friends, were I to be privately hired for those hours I would charge US$1600 or more, and that would be _cheap_).

Delilah Karas said...

Hey there, two things. One I obviously agree with this considering my pseudo rant on my own blog regarding same.

Two, I was wondering if you would mind a link exchange between your blog and mine? Or at the very least if you would mind if link to your blog from mine?

CronoCloud said...

Sure thing, Delilah. Thanks for linking, and I've linked back to you (and cleaned up some defunct links)