Fair pricing means a reasonable profit on the base cost. Trying to gauge what people are willing to pay means that you want to maximise your profit at all costs, consumers be damned.
I understand that’s what Americans consider “fair”, but I don’t fully agree.
In most cases, yes. But you have to remember, this is Valve and not some ordinary company. They have extremely deep wallets and a lot of responsibility and expectations on their shoulders (importantly, not the stock market!). If they charged what it cost for hardware and what it cost them to do r&d, it would likely not be in consumers favor.
Like even just get off the American-bad thing for one second: pricing it as a standalone pc basically just means “the cost of the parts”. They’ve put a lot of time and effort into this across their core employees and likely outsourced stuff because they couldn’t, in-house. Actually listening to people and charging relative to that is actually a great way to be fair and make people happy, guaranteeing positive impact of your product. I guarantee they’re paying attention to what people say ALL over the place. Like… Why do you think “it’s done when it’s done” is their pace?
They’re letting us discuss this ad nauseam just to understand what prices people consider acceptable for these devices
Anything more than $500 and we riot!
100%
But that’s not a terrible thing, I suppose.
Absolutely. I think 80$ for the full package seems fair.
$70 if you hand deliver it to me. It’s my final offer.
$60? why do they want $50 for something that’s clearly $10?
Fair pricing means a reasonable profit on the base cost. Trying to gauge what people are willing to pay means that you want to maximise your profit at all costs, consumers be damned.
I understand that’s what Americans consider “fair”, but I don’t fully agree.
In most cases, yes. But you have to remember, this is Valve and not some ordinary company. They have extremely deep wallets and a lot of responsibility and expectations on their shoulders (importantly, not the stock market!). If they charged what it cost for hardware and what it cost them to do r&d, it would likely not be in consumers favor.
Like even just get off the American-bad thing for one second: pricing it as a standalone pc basically just means “the cost of the parts”. They’ve put a lot of time and effort into this across their core employees and likely outsourced stuff because they couldn’t, in-house. Actually listening to people and charging relative to that is actually a great way to be fair and make people happy, guaranteeing positive impact of your product. I guarantee they’re paying attention to what people say ALL over the place. Like… Why do you think “it’s done when it’s done” is their pace?
They’re buying the parts directly from the manufacturers though, so cutting out the retailer middle-man could offset the R&D costs.
It’s a good idea, tout the market before doing anything controversial