Quote:
Originally Posted by jayeff
If business/economics were really as simple as many people here represent, it would be a lot harder to find anyone willing to do garbage pickups.
Online porn is starting to pay for its complacency towards other markets and its near total focus on the US. If you were to double your price to US customers - who by and large are harmed rather than benefit from the fall in the value of the dollar - you would see much of that price increase wiped out by declining sales from what is - for most sites - by far the largest group of customers.
Nor would it be any consolation to non-dollar customers that they might - in their local currency - still be paying what you originally intended. They would also react negatively to what they would (rightly) see as a price increase.
Someone would need to do it to discover how much of the benefit would be wiped out. It would doubtless vary, harming most the sites which are already perceived as providing poor value. Karma comes in many forms...
|
Hear ya jayeff and agree!
There was some thought given to this and to the bottom line. Sure, there were a reduced number of US sales etc - but the bottom line was healthy - it's all a balance and there is no point in bothering with regions where the return can be unprofitable.
Simple example which was produced by the finance world a few years back is the "Big Mac Index" - ie.. McDonalds have a price for a Big Mac in Ohio - that is not the same price they charge in.. eg Rome (it's considerably more). Using the Big Mac Index was the basis of website pricing - and also partly using processors who handled multi-currency with regional signup pages where membership pricing can be different to reflect strong/weak currencies.