Fifty-percent off Sales four times a month ?

Discussion started by Forester

This is getting to be a little bit excessive, isn't it?

Answers

Posted 9 months ago
0

why?
you don't have to participate.
Go to the settings and take a look at them and decide for yourself.

LemonadeCG wrote
LemonadeCG
You don't have to participate in discount programs to realise that overly frequent sale events are affecting everyone's sales, not only those who participate. If buyer sees that most of the time most of the models are being on sale with up to 70% discount, then it's much less likely that he will ever wants to buy anything for full price.
3dmeshes wrote
3dmeshes
hi LCG Then he can wait a long time! For example, I don't take part and I don't intend to. 50 % or 70% ? never!
Posted 9 months ago
0

Thank you for explaining more, LemonadeCG. What is the point in participating in a site where there is a massive discount sale every single week? Essentially, this says to all customers that most of the products the site offers will ALWAYS be half their advertised price, or even just a third of their advertised price. If they aren't priced that way today, just wait until tomorrow. In effect, CGTrader, starting three months ago, just devalued their entire inventory of products by half. This means for all of us. I wonder how many of us vendors have given thought to this. ........ So, looking forward, this new practice of CGTrader creates maybe some confusion, but certainly imposes a new, rather significant "opportunity cost" on the business of making and publishing 3d models and tools. If I know, as I do now, that CGTrader will regularly price my models for half of what I believe to be their fair value, should I adapt to the constant sales by simply pricing them higher so that I receive a fair return? For the long term- this is a poor advertising strategy for any vendor who works on the basis of establishing a good reputation (as any vendor who is in the business for the long-term surely tries to do). That is, all my models now must be priced too high. Most purchasers of models probably have a good idea of what a model of reasonable complexity and artistry should cost. So, my regularly advertised price is always going to have to be much more than the model is rally worth. Not good - and my professional reputation suffers. ... Also, for those of us long-term professionals, the CGTrader practice results - over time - in creating a broader differential between our good, well-made models and those that look similar, but are priced more cheaply and are more poorly made. Our models are consistently priced higher, driving the bulk of naive buyers to purchase the cheaper models often made by more transitory vendors. OK, my simplistic strategy of just doubling the cost of my models doesn't really work well. So, maybe, I consider a strategy of making constant adjustments to the price of my models so that I continue to receive a return commensurate with the costs to me of making and publishing them. However, this is the new "opportunity cost" just added to the expense of building models in the first place. Is this reasonable? Already, I bear the costs of software, hardware, research, constant self-tutoring to keep up with changes in technology and the need to continually expand my skills, plus the normal time and effort investments. So, if I am business-minded, my best bet is to simply move my products to another brokering site that has stable pricing and vending policies - policies based on occasional sale periods.

3DCargo wrote
3DCargo
Forester - What is the point in participating in a site where there is a massive discount sale every single week? Essentially, this says to all customers that most of the products the site offers will ALWAYS be half their advertised price...::: Don't participate in the sale then, its your choice. It doesn't say anything about the original price, the original price should be its market value. It makes CGT money and should make you money, if it doesn't fit your sales strategy then why comply? Forester - I wonder how many of us vendors have given thought to this::: I have. My price during sales is maximum 30%, which matches my commission on 'other site' I sell on. So in effect the customer pays the same price regardless of where they buy it (cheaper for them on sale), and if they buy on sale then I get the same commission as I would at my lowest accepting commission - which matches the commission of the 'other website' I sell on. Its win-win, customer pays the same or cheaper, I get the same income for both websites, since they have sales at different times. The 'other site' I sell on I don't participate in sales events, which keeps things 1:1. Forester - should I adapt to the constant sales by simply pricing them higher so that I receive a fair return?::: What for? Just do the math, you can apply what I said above and create a win-win scenario. The moment you trying to fool your customers or the system you are creating un-fair advantage for either party. Choose to do with that information as you wish. Forester - Our models are consistently priced higher, driving the bulk of naive buyers to purchase the cheaper models..::: Then let them learn as we all do. You get what you pay for. Forester - OK, my simplistic strategy of just doubling the cost of my models doesn't really work well. So, maybe, I consider a strategy of making constant adjustments to the price of my models so that I continue to receive a return commensurate with the costs to me of making and publishing them. However, this is the new "opportunity cost" just added to the expense of building models in the first place. Is this reasonable?::: You are right, its simplistic and not reasonable. I would advise you create a better strategy. The word 'value' means what you offer your clients - if you save them time, create high quality content, deliver on all fronts then you are providing value. If you are playing with prices based on what you see around you, then you obviously don't know what value you are providing. Forester - Already, I bear the costs of software, hardware, research, constant self-tutoring to keep up with changes in technology and the need to continually expand my skills, plus the normal time and effort investments. So, if I am business-minded, my best bet is to simply move my products to another brokering site...::: As do we all, if you are business minded then you probably already have your content on other websites and compare results correct? Then you know what that extra work involves and if its worth the return on your investment of time.
Forester wrote
Forester
So, your strategy amounts to offering the same model on different sites for somewhat different prices, and not participating in the CGTrader sales. OK, fine. But I think you might be focused on contending well with your own situation, and maybe not reflecting as much on the main point I am trying to draw attention to --- about the impact on the general marketplace of CGTrader effectively reducing by half the value of most of their inventory. ... I "get" that your are trying to recommend the wisdom of your strategy to all other vendors. And, I will admit that I was using a rhetorical device in examining the question of an individual vendor's best strategy to contend with these changes to draw attention to the issue. (Maybe not my best way of putting things.) Perhaps, if most of us vendors would decide to not participate in these weekly half-off sales, as you do, that might do some good. Might counteract some of the effect of the new, weekly- half-off sales. But, this idea just helps to further explain the import of what CGTrader is doing to the general marketplace by effectively devaluing most of its inventory by half. I feel as if I am not really laying out all the unintended consequences of this new policy to all of us.
3DCargo wrote
3DCargo
You should re-read what I wrote, my prices are the same on each market and I do participate in CGT sales because the commission value is equal that way. I'm not recommending anything, I was just responding to you directly based on the topic. There is no pressure for you to participate in any sale if it doesn't work for your business strategy, or anyone else for that matter.
Forester wrote
Forester
You're probably correct: I didn't read closely enough.
Posted 9 months ago
1

So, as you can see, I have at least a basic education in economics. But, I don't understand this new change in CGTrader's sales policy. The nearest competitor, Squid, has just attempted to protect their location in the marketplace by simultaneously continuing to offer their best vendors only 40% of the sale price, but making it significantly easier and less time-consuming (i.e., less-costly) to "publish" a model. The price differential between typical models offered by Squid and by CGTrader continues to grow - similar models are significantly cheaper on CGTrader. So, this is kind of an economically strange move. - to substantially devalue the entire inventory, and at the same time, impose new opportunity costs on the vendors that provide that inventory. ..... I can understand attempts to re-price some of the inventory - a lot of the old models are surely too expensive by Today's standards. But, a better way to re-price the old inventory would be to contact the vendors and ask them to re-price their old models. Or to arbitrarily reduce the prices of really old models across the board. Maybe using some arbitrary date - all models published before the year 2010 should go to half-price, maybe. ..... Anyhow, I just don't understand this.

Forester wrote
Forester
Or maybe, the administrators of CGTrader just think we model-builders are all pricing our work too highly, and so they are imposing a massive "price correction" on all of us. Maybe, its just that simple.
Posted 9 months ago
3

My guess is, CGT is just trying to reanimate the dying market... It's already dead for me and I see zero sense in making new models for sale.
The undervaluing that is going on for years has already hit the bottom and it looks like as a result the customers had developed an understanding that 3d models are a cheap commodity and all should be priced max $20 no matter how complex or high quality they are.
Everybody is seeing the consequences of that already and it's not only on CGT. The whole market is royally f...ed and I'm not sure that's fixable now.

Forester wrote
Forester
An interesting hypothesis - an idea with some merit. Maybe the best explanation. Sorry about your pessimism. I am still selling models at about the same pace as always. I sell different kinds of models in different locations (not the same model in multiple sites as per 3DCargo above). Some kinds of models sell pretty well for periods of time, and compensate for the others not doing so well on other sites during that same time period. Your stuff is really good, so, don't give up. It is still a viable business.
trimitek wrote
trimitek
I suppose we have a different point of view on what a viable business is. When I calculate the time I put in preparing a model for sale and the return I get from it, it's obvious that there are a LOT of much better options. Even washing dishes can make you a better profit and it doesn't require any special skills or software.
Posted 9 months ago
0

Principally someone could go this mainstream way on CGT and price a model at $20 in order to get that $10 when enabling 50% permanently, and according to my observation, the very most vendors do so, above all when you look at the first pages, or at most selling products. However, it is a very complicated thing, because most of us have also accounts on another marketplaces, and there, permanent sales are not allowed, or possible. You can´t simply enable "permanent 50% off" on Sketchfab, and even not on RenderHub. So when a buyer checks the item price on CGT with 20 bucks down to 10 bucks, and he views the same item on Sketchfab at 10 bucks (without discount), he probably is pissed off. It looks like fraud, scam or at least quite nasty.
So... it seems (I know Lemonade won´t agree with me, but it´s still my observation) all marketplaces do something or don´t something in order to keep a totally UNcompilance and UNharmony with other marketplaces, to all costs. But this makes the vendor´s life even harder.

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