Is Software / Hardware over-priced?

ICN

I've noticed that several popular bits of software recently have been knocked down to bargain bin prices.

Theres probably been the same for hardware too.. but I dont really be checking tbh.. so cannot say for sure. I'm all in the Box. The only bits of hardware that I have I suppose is my Computer, Midi keyboard & Soundcard.


A few months ago.. Arturia were doing a 2 for the price of one deal. Now they're doing a Sale - 50% off all synths. They say its to make way for new versions.

Rob Papen did a "Buy Blue & get Albino free" around Christmas.

NI were selling the Audio Kontrol 1 with a free Synth - FM8 / Absynth etc.. a late last year I think. Now they've dropped the price of Komplete 5 from €999 to €399. There could possibly be some update soon for their synths I suppose. They also had Battery 3 for €99 a while back also.

PSP & Sonalksis have had offers too. PSP made me laugh in their Newsletter about there being some Polish holiday that they wanted everyone to know about & that was the reason for the sale. The 2nd one since Xmas actually.

You would feel rightly sick if you had bought something that a couple of weeks / months later found that you could have got it cheaper.

I'm wondering why these companies are doing it. Are they Stuck?

Have they always been as fast to offer discounts on a regular basis? I cannot remember too many deals in the past.. Certainly deals like these anyway! There is probably a healthy fear of Piracy mixed in there somwhere too.

So are they in a bad positon at the moment? Probably.

Was the Product overpriced in the 1st place? More than possibly.


When does a piece of software / hardware become profitable and start paying for itself?

Its interesting looking at the amount of people selling Gear etc.. on this forum. You only have to look at Adverts to see the amount of stuff going up. People are being a lot more realistic & intelligent about what they are using & buying.

Will the Companies who make these products that we love take the chance to start giving real value for money for their customers?

splitrmx

Hardware and software has never been cheaper! You kids have it lucky.

jtsuited

there's a huge difference between hardware and software when it comes to the economics of their breakeven point. Once a hardware company recoups it's r&d cost it still has substantial expenses with raw materials and manufacturing.

Whereas when software recoups r&d the actually have little or no expense making all turnover essentially profit (hence the reason any popular computer game will be selling at a fraction of the original price a few months later).

So software companies right now don't really have to worry about selling at a loss on anything that's not brand spanking new.

ICN

jtsuited wrote: »

Whereas when software recoups r&d the actually have little or no expense making all turnover essentially profit (hence the reason any popular computer game will be selling at a fraction of the original price a few months later).

So software companies right now don't really have to worry about selling at a loss on anything that's not brand spanking new.

Software.. Yup - So.. for how long have they been making the Max?

Hardware.. True.. But will there be a point were the quality of the components is adjusted to meet the demands of the current market?

ICN

splitrmx wrote: »

Hardware and software has never been cheaper! You kids have it lucky.

Sure.. But is it still overpriced?

Overpriced is a state of mind.. Its only worth the price you are willing to pay/can afford? Y/N?

PaulBrewer

ICN wrote: »

Sure.. But is it still overpriced?

Overpriced in relation to what ?

In relation to the use it gets ? To how it sounds ?
The amount the work it's used on generates ?


At the moment it's a bit of a 'how long is a midi lead' type question ....

ICN

PaulBrewer wrote: »

Overpriced in relation to what ?

In relation to the use it gets ? To how it sounds ?
The amount the work it's used on generates ?


At the moment it's a bit of a 'how long is a midi lead' type question ....

I get what your saying in a kinda Rethorical question type way Paul.. But they're closed questions I'm afraid Mate.

Lets be more relevant than that. Yes & No's dont win discussions.


Tesco Vs. Dunnes Vs. Lidl Vs. Supervalu.. Whatever.

Business is Business.. How much should this stuff actually cost?

If the cost is relating to the worth.. how come it can now be sold at such a reduced price?

To reference your response..

Buy a Chicken from Supermarket X.. have the Breasts for Dinner.. Eat the Legs for Lunch.. Have a Risotto/Sandwich/curry etc.. for the next day's meal...Make a Stock from the carcass.. Fashion the feathers into a pillow etc..

Yes - You can get great use out of anything you buy.. But at what reasonable point should you stop paying?

Bottom line - These Guys are creating new pricing structures that are acceptable to their Accountants - so WTF?!!

Would it be too controversial to admit that things occasionally deserve to be cheaper?

If these Boys obviously have no problem dropping the charge.. Why defend high prices?

PaulBrewer

At the moment things are so bad for many companies that price cuts are the norm.
For a lot of companies it's just about survival .

If the market wants R+D , support, Local Representation etc etc those things cost.

If sales slow down like they are now, that's the area that will be cut so products in the future like the current new Audient Zen for example (that we began talking to Audient about 3 years ago) won't happen in 3 years time.

There's certainly no better time to buy gear than now - we've had a pretty good first half of the year.

I've sold 3 SSL AWS consoles so far this year because of, I believe, the combined factors of the world economy and the products life cycle have allowed them to become affordable.

The next few years are going to be very interesting.

Don't be expecting too many new things in the next few years, they just won't be built.

At the moment a lot of the 'cheap' hardware is made in China. What's going to happen when the Chinese worker expects/demands higher wages? The cost per unit goes up.

As the profit margins are worked on a percentage basis through the distributor chain for each $ extra cost could mean a $5 or maybe $10 price increase, plus the Vat at our end.

In many ways gear is actually way too cheap from the point of view that a lot of our Oriental brethren don't have the opportunity to have the excessive Western lifestyle we have, by being paid very little. If they were being paid more our **** would be way more expensive over here.

However all the signs are that they will (India is talking about the likelihood that it may have 7% growth this year ), and pretty soon.

A lot of companies raised their prices in January this year because raw material prices have risen.

Shipping costs too are on the increase - just last week DHL changed their pricing.

We used be able to ship anything up to 30kg for Euro 15 cost to the customer.

Not any more, it will now be a per Kg price - so effectively anything heavier just got dearer.


The global downturn has had a passing downward force on pricing - but that can't last - if companies can't make money they'll fold.

You only have to listen to the news to know that.

Gear is artificially cheap at the moment - but that can't last.