Quote:
Originally Posted by woj
Price is the only thing keeping this business together, once paysites start offering lower prices it will all fall apart. Not only everyone will have to compete with tube sites that offer stuff for free, they will have to compete with idiots who sell it for cheap. If you start competing based on price, in a few years price will drop to dirt cheap, and everyone will be scratching their heads trying to work out how the profits dropped from $100/member to $5/member...  |
While you could be right, and I might be wrong. The sites I know of with competitive pricing are doubling or tripling their member base each year. The sites sing the old methodology are pretty stagnant.
Nothing is also always going to be an absolute. Even if I was right, it wouldn't hold true in every case every time. In some cases, some of the time, the old methodology would work.
Point is, either way. The only sites out there right now which don't appear to be seeing a drop in sales like everyone else. Are the ones who aren't using the archaic system in place from the mid nineties. They're setting their own standard and not using any pre-formed pricing mold. You need ingenuity in all aspects of your business.
Plus, it's not always that the prices is necessarily just too high. I'm on two websites which are free to use, but I donate to them each year. Because they aren't for-profit websites and I enjoy their use. I don't need to donate, but I do because I value the resource.
When you look at the porn industry. I'm not saying you cannot get surfers to spend loads of money on a website. Otherwise we wouldn't be facing "declining sales", we'd be facing "absolutely no sales". What encompasses price is the products value. Online porn doesn't have a very high value to most consumers. To most consumers, the online porn they encounter is free. There needs to be incentive to spend money. Most sites don't provide that type of incentive.
Each point I made encompasses the rest of them, just as price does. If you want to offer a very high price, you need to provide enough incentives to do so in all the rest of the areas. You cannot just continue to provide the same basic product from the mid nineties and expect sales to increase with higher prices. Pricing can simply not increase if the product and delivery do not as well.
The sites I see out there doing well. Are the ones providing a cutting edge product, with innovative features and user interaction. They are doing so while lowering the bar on price.