Starterkit Price Drop, Sales Numbers

On August 16, 2010, in Announcements, Marketing, by Steffen Itterheim

The important bit first: the price of the Line-Drawing Starterkit is back at $179!

The simple reason: customers voted with their wallet, it sold zero units at the $299 price point over the last two weeks while people kept asking me for rebates and price drops. I clearly misjudged the value proposition of the Starterkit and how much potential customers would be willing to spend.

About Thinking, Learning and Knowing

I’m going to be upfront about the sales numbers because I want to be instructive and convey the lesson’s I learned. I also find these numbers posts very intriguing myself. One of the things I love about working under my own terms is that I can choose how transparent you want to be. I feel there’s more to gain from transparency, being open and upfront, and sharing what you know then there is to lose.

I’ve actually been told a few times that you can’t sell to cocos2d developers. Which I find astonishing. “I don’t think there are sufficient willing customers” was the one sentence I received in an email which I find most telling. Thinking is not knowing. Thinking is: not knowing! Trying and not succeeding is ok, but thinking and not even trying is not. The former you might regret financially but seldom will you regret having done it. The latter is just being complacent and accepting the status quo, or simply a reluctance of pursuing unconventional business ideas.

I can only say: I’ve learned a lot from running this website over the past 4 months. Certainly more valuable lessons and knowledge than from most of the books I own, and the above selection is just a fraction of my library. They are the books I hold most dear and are most relevant to my work right now, including Stephen Hawking’s Universe in a Nutshell as the perfect separator between left-brain (hard skill) and right-brain (soft skill) books. It puts everything in the proper perspective. I certainly didn’t expect to learn some of the lessons nor was it easy to deal with the very unexpected ones, but I did nevertheless. The good part about the hard lessons is that they make me think even harder to learn what I need to know to understand. I also have a bunch more unconventional ideas now. And I grok Invictus.

The Numbers

The Line-Drawing Game Starterkit has been on sale (40% off back then) from July 10th to August 1st, that’s 23 days. From July 10th until the public announcement on July 20th the sales were limited to my Newsletter subscribers, close to 670 people were given the password to access the sales page at the time.

When I formed the idea of selling a Starterkit, I punched some numbers about website traffic, pricing, conversion rates, looking at other products, thinking of what certain indicators could mean, why people are having success and why others don’t. Being a pessimist I came to about 3 sales per month if the price is around $200. That would have been nice, and would have allowed me a return of investment in less than 6 months. And when I was optimistic I thought I could be making up to 5-10 sales per month, perhaps by being featured prominently. I definitely had enough positive indicators to go ahead and try making and selling the Starterkit and being sufficiently convinced that it’ll have a positive impact, financially and otherwise.

The reality is that I sold 30 copies at $179 each within 23 days! Way, way more than my expectations. See the screenshot of the payment report to the left for the monetary details. Note that the first section with 3 sales were test sales by myself, so that amount should be deducted from the total. Also, 30 times $179 does not equal the sum on the bill because surcharge fees depending on the payment method have already been deducted. Net sales is the amount after Plimus took their share, which is close to 5% if I remember correctly.

I estimated my return of investment (break even) at about $4,000. So overall it’s not bad. Not bad at all given that I made all those sales in 23 days instead of months.

The downside to this story is that after setting the price high at $299 I did not make a single sale in the past 2 weeks! This price point seems past a certain pain threshold that developers are feeling comfortable spending. Customers voted with their wallets and I basically killed my own business by modifying just one (crucial) aspect of it. I was my own worst enemy by making a wrong judgement call.

And of course I’ll try to fix it: from this day on forward the Starterkit’s regular price will be back at $179! It has proven to sell at this price point and I’m hoping to see sales pick up again. Despite this no-sales period of over 2 weeks the Starterkit earned me $120 per day on average, or an hourly rate of $15 assuming a regular 8-hour work day.

The Future

If it turns out that continued sales from the Starterkit allow me to live off it, I’m going to run this website full-time in the near future. That means more free stuff, more intriguing blog posts and every once in a while a new commercial product that targets very specific unfulfilled needs of cocos2d game developers. You might consider the cocos2d book to be one of these commercial products, and I intend to improve it after press by listening to reader’s feedback and filling any holes with free Tutorials and FAQ entries on this website. It will be a book that continues to get written.

More Lessons to learn

If you want to learn some business & marketing lessons in general I recommend reading The Long Tail to understand how niche markets work and Influence: The Psychology of Persuasion for a lesson in marketing which I find important to understand both from the seller’s and the customer’s point of view. The Long Tail was instrumental for me to actually become comfortable with the thought of selling a product to a niche audience and why that idea might just work. But also instrumental because I just keep shaking my head when I read the naive comments of some people. That’s also where how to deal with critics comes in handy.

I just stumbled across this …

On July 29, 2010, in cocos2d, by Steffen Itterheim

Google Sponsored Link: Cocos2D Explained

The iPhone Game Kit:

Currently 50% off at $49.

It says: What You Get:

  • an iPhone Game Dev Book
  • complete game source code
  • cocos2d
  • lots of game art
  • publishing guide
  • free upgrades for life

Site is hosted on two different domains: iphonerpgkit.com and iphonegamekit.com

My thoughts

I tried the game and it seems to be a ISO Map RPG style hack and slash game. It’s probably ok for a starting project if you plan to do a RPG hack & slash. Most of its content seems to be prebuilt tilemaps. From a technical perspective the combat system and D-Pad controls could be interesting.

My impression: impressive marketing effort. Effective sales pitch. Typical single-product sales pitch website (no relevant free content) which makes me cautious though. Including free cocos2d and free game art in “what you get” bullet-point list is technically correct but misleading. Info about the guy behind this is unimpressive (made a game in 1995?). But there’s a forum and questions get answered.

UPDATE:

I bought it, skimmed over the code. Clearly structured, consistent coding style. The PDFs are aimed at beginners and they are well written, overall 144 pages. Over 4,000 lines of code and plenty of assets used by the game. It’s not a bluff package and a serious amount of work has been put into this.

UPDATE 2:

The key point to take away is this: he is marketing it directly for beginning cocos2d developers: “You get to Learn Cocos2D”. But the iPhone GameKit is from my point of view most interesting to those who want to create a hack & slash RPG for iOS devices in general and learn how to use CCTMXTileMap specifically.

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