Pricing Strategies for Pricing Strategies for Virtual Goods Virtual Goods Eric Gonzalez Eric Gonzalez CEO, Doubloon CEO, Doubloon Casual Connect 2010 Casual Connect 2010 Copyright Doubloon Inc. 2010 Copyright Doubloon Inc. 2010 Virtual Goods Virtual Goods Priced Right Priced Right
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Pricing Strategies for Pricing Strategies for Virtual GoodsVirtual Goods
Eric GonzalezEric GonzalezCEO, DoubloonCEO, DoubloonCasual Connect 2010 Casual Connect 2010
Copyright Doubloon Inc. 2010Copyright Doubloon Inc. 2010
Virtual Goods Virtual Goods Priced RightPriced Right
• Eric Gonzalez, CEO, Doubloon virtualdoubloon.comEric Gonzalez, CEO, Doubloon virtualdoubloon.com• Everything You Need to Run an In-Game Virtual Everything You Need to Run an In-Game Virtual
and Gifting.and Gifting.• Focused on Market Intelligence, benchmarking to Focused on Market Intelligence, benchmarking to
help you make smarter pricing decisionshelp you make smarter pricing decisions• Talking about Talking about Pricing StrategiesPricing Strategies Today Today
Why Optimal Pricing?Why Optimal Pricing?
You Can Make Lots of Money but it You Can Make Lots of Money but it Requires Informed Decision MakingRequires Informed Decision Making
1. More Customers 1. More Customers
2. More Retention 2. More Retention
3. More Revenue3. More Revenue from Each Userfrom Each User
• Behavioral Economics Behavioral Economics • We are We are GoodGood at Assessing at Assessing RelativeRelative Value Value• But We But We SuckSuck at Assessing at Assessing Absolute ValueAbsolute Value• Introduce Subpar Items at Introduce Subpar Items at • Par Prices to Boost Sales ?Par Prices to Boost Sales ?• A/B TestingA/B Testing
• Real WorldReal World - Smaller Tub of Ice cream - Smaller Tub of Ice cream • Virtual WorldVirtual World - Subtle Sinks, like better - Subtle Sinks, like better arrowsarrows contain less in the quivercontain less in the quiver• Currency buys = currency sinksCurrency buys = currency sinks
• Use the Crafter LifecycleUse the Crafter Lifecycle• Profitable at FirstProfitable at First• Then Dip Into the RedThen Dip Into the Red Just Before Max LevelJust Before Max Level• Price in vCurrencyPrice in vCurrency (Casino Psychology)(Casino Psychology)
• Visible to UsersVisible to Users• Price May Rise asPrice May Rise as Quantity Nears ZeroQuantity Nears Zero• Demand basedDemand based Auto-Price (withinAuto-Price (within limits you set) limits you set)