If anybody has knowledge in economy, you might be able to enlighten me.
In regular market, the price of an item is determined by offer and demand. If there is an higher demand of a lack of offer the price will raise.
Most type of products will sell at full price when they are released and eventually drop in price as the product gets exhausted.
The problem with PnP games is that the offer is unlimited, you will never run out of games. The second difference, is that compared to regular product sale where heavy advertisement is done to sell enough unit to break even, PnP games are sent on the market unknown and they get known as the time pass.
This kept me thinking that maybe the price should raise while the time pass instead of dropping.
Right now my strategy to was to make a release sale at half the price so that my game gets known (let say 5$). Then after the release is done, sell the game at full price 10$, and reduce the price as the time pass. But the problem is that since little people know the game, little people will be willing to pay 10$.
But If I try the other solutions, start the price at 5$ then as the time pass, raise the price by 1$ each year. Or check the sale, if there are more sales, I raise the price, if the sale are similar, leave it this way. In that situation, the game will get know faster and if it gets known by many people, there will be more people willing to pay the full price rather than if it was known by few people.
For example: if 1% of the population is willing to pay full price, then if 100 people know your game, it generates 1 sale, but if 10000 people know your game, it generates 100 sales.
The price might not constantly raise, it might reach a roof, stay there and drop again. I guess that the price should be hooked on the demand level.
The only problem I can see is that it is counter intuitive, people does not expect the price of a product to raise with time. They might be offended if it occurred. On the other hand it could be a way to incite sales, "if you wait too long, the price will raise, so buy it now"
So does it make sense to start low and end high?
Do you have other suggestions?
As it was discussed in a similar thread in BGG, the price should only fluctuate according to the demand.
So an idea is to start low. If the demand raise, raise the price. continue to adjust the price according to if the demand increase, or stall, or drop.