Author: Dann Corbit
Date: 11:47:41 10/29/98
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On October 29, 1998 at 14:37:04, Bert Seifriz wrote: >On October 29, 1998 at 12:58:23, Dann Corbit wrote: >>You have to imagine from Ed's point of view also. Look at a box for >>chessmaster. My CM5500 CD says "4 million sold" on it. > >This was questioned here many times. It refers to all versions >of Chessmaster and nobody knows if the number is just a plain lie! I don't doubt it for a second. Every major bookstore I go to has it on their shelf. I know other people who have bought it, but I don't know other people who have bought any other program (other than vicariously through usenet). 100 million households in the US. If one in 25 buys it, that is 4 million, in *ONLY* the US market. Surely the european market is as large or larger. Now that is only one in 50 households. Consider the rest of the world as the size of either of these markets, and only 1/75 potential customers is needed. > That's because it is >>cheap as dirt to buy. Supply and demand is a differential equation, whereby you >>want to maximize profit by the product of the number sold times their price. >> >>Sometimes you can make more money by lowering the price. Let's see: >>4,000,000 * $45 = $180,000,000. >>Not a bad little sum. >> >No, but your calculation is a dream. Do you think if Rebel costs 1 buck >you will sell 4 million? Never. Rather people think it is trash >and buy nothing. I was talking gross, obviously. >To slash a price by half 2 weeks after its release is suicide! I think the real damage may be relationships with his resellers. I can see a big backlash right here, obviously. If he has a deal cooked with a mass merchandiser like Wallmart or something, it may indeed make sense for him. But if he alienates his sales force, it may be at a cost of shelf space.
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