Market research

[Free]

If we could sell 20 times as many $3 CDs than we could sell $30 CDs, it would obviously be good for us.

This is wrong. You have to take costs into consideration. E.g. if each CD costs you $2, then you need to sell 28* as many for $3 as for $30 just to break even.

Creating cd's cost about nothing... The cost is negligible.

[Deanrover]

It is pouring with rain here, so I'll treat you to some Economics.

 

Say you want to find out the optimal price to sell Bridge Master.

 

Step i) Make a C(q) function. e.g. C(q)=500+ 1Q, i.e. it costs 500 to set up a print run, the $1 for each extra CD.

 

ii) Set up a Dd(p) function. e.g. Q(p)=10,000-50P. which means if the price of BM was $0, 10,000 copies would be demanded. If the price was $100, 5,000 would be demanded, $0 would lead to demand 0. The actual function would probably be nonlinear. Rephrase this as P = (10,000 - Q)/50. Revenue is just P*Q, giving Revenue = Q(10,000-Q)/50

 

Differentiate i) and ii) WRT Q giving

 

iii) 1 and

iv) 200- .04Q

 

Equate iii) and iv) giving 200 - .04Q = 1 or Q = 4975. So the optimal amount to sell is 4975 units, which we see leads to a price of $100.5

 

Note that this ignores tax. Say you were taxed 20% of revenue. Now your revenue would be 0.8Q(10K-Q)/50, and the resulting calculations would lead to a higher price and lower quantity solution.

 

However, real life is more dynamic. E.g. if you think sales today will effect Demand tomorrow, you have to alter some of the equations.

 

Sorry if any of the math is wrong, I am in an internet cafe in Jerusalem and have no calculator.

 

Have to get running, but hope this helped,

 

Dean

[flytoox]

lol, since when this became an optimization course? CD's cost should be largely neglectable.

[scoob]

i would definetely be interested in the dvd's

[inquiry]

Hi Fred,

 

I would be marginally interested in both products. 6 hours of DVD sounds fun, I would guess somewhere around 15 to 20 dollars would be my limit on that. However, I fear if you bought a bunch of these you might get stuck. Maybe you could take "pre-orders" conditioned on getting enough to justify buying a bundle from your distributor....maybe. I think buying a load of these is a risk.

 

I really enjoyed the Deal of the week hands on line (not as much as Bridge master, but still it was a great feature. The right price is a little fuzzy, but for all 155 hands, I would surely pay at least 15 or 20 and it would be a bargain at that price.

 

Ben

[fred]

lol, since when this became an optimization course? CD's cost should be largely neglectable.

That is true when you are the publisher of the CD. It is not relevant when you purchase the CDs/DVDs from the publisher - what matters in this case is their wholesale price.

 

Fred Gitelman

Bridge Base Inc.

www.bridgebase.com

[han]

The deal of the week was what drew me to BBO in the first place, and I loved it (I think I saw a link in the online version of a Dutch newspaper). Having read them all, I don't know if I would be interested in buying them. Perhaps, $10 doesn't sound like too much for so much material.

 

The dvd doesn't interest me, I can't imagine buying it.

 

I bought some Larry Cohen and Kit Woolsey cd's through bridge base and I loved them. They are definitely worth the money. I might treat myself to some new cd's soon.

 

What I like so much about the cd's (and the deal of the week's) is that you get a chance to think about the hands before you hear the expert's answer. I don't think this would be as nice on a dvd.

[DenisO]

The DVD is now on sale in the EBU (English Bridge Union) shop in the UK at £17.99 +P&P - but there is a 20% discount for EBU members. The discounted price equates to about $27US. My experience is that Bridge software in the UK is generally some 30 to 40% more expensive than in the US or elsewhere - hence I tend to buy from BridgeBase.com -but have also bought from Canada and Australia (Nick Fahrer's Bridge Shop) with good savings on UK prices.

 

 

Denis

[vang]

i would love to have product #1, since i never had a chance to see live a big tournament. and the proposed price seems just fair to me.

 

#2 is not so attractive for me.

[newmoon]

Would you be willing to pay for a collection of the first 155 Deals of the Week if they were converted to our new format? Most likely we would sell such a collection as a download through the Shop Bridge! area of BBO (as opposed to on a CD-ROM that we would ship to you).

Yes, I'd be interested in obtaining those as a download.

 

I'd be willing to pay $10-$20.

 

 

I would also like the reinstatement of the weekly "Deal of the Week" emails I used to receive - now THAT was nice. :)

 

 

The SkySports DVD? $15 tops.

 

 

Newmoon