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 made a few additions to the Xcode Tutorial and the cocos2d FAQ which are based on user questions and concerns.

Xcode Project Tutorial: How to integrate Chipmunk SpaceManager

How to update the cocos2d-iphone code in a project created with a cocos2d Project Template? (Theory & Advice)

How to fix common Box2d compile errors? (must compile using C++)

How to fix common Chipmunk compile errors? (does not compile with C++ code)

How to draw an endlessly repeating Parallax Background? (very simple, very effective)


On Searching the Tutorial & FAQs

I’m still trying to get the search function on the Tutorial and FAQ pages fixed. Currently it works for the Xcode Tutorial only but other search result links may simply show an Error. I’ll try to get this fixed as fast as i can and i’m getting very helpful support from the folks at ScreenSteps Live so i’m hopeful.

Please also note that the search box in the navigation panel doesn’t search the FAQ and Tutorials, just the blog and pages.

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Xcode Project Tutorial Updates: Box2d & Template

On May 12, 2010, in Announcements, by Steffen Itterheim

If you followed my Xcode Project Tutorial or received it after signing up for my Newsletter you may have noticed that it would not compile if you added #import “box2d.h” to any of your classes. I investigated and thanks to your comments the problem was easy to fix. I wrote a Tutorial lesson detailing box2d integration issues and how to solve them.

In addition, Tim Soliday who blogs at FatFingerStudios.com went through the effort of creating a “real” Xcode Template from my Tutorial project. By “real” i mean an Xcode Template that will be added to Xcode’s “File -> New Project” list of applications so that you can choose to start with a “cocos2d Application from there. This has also been requested by readers. I added another Tutorial lesson which describes how to install Tim’s Xcode Template.

I will add Tim’s Xcode Template to the Newsletter welcome mail in a couple minutes so new Newsletter subscribers will receive it automatically! If you have already signed up for my Newsletter you’ll have it in your inbox shortly, you do not have to sign up again!

The new Projectfiles you’ll receive also contain the box2d fixes and include my free source code collection and a number of other changes. Most notably the addition of License files and folder structure that go along with it which help me and my customers to differentiate between my base source code that is only licensed to the customer vs. source code that is later fully owned by my customers. Feel free to disregard or delete these License files if you have no use for them.

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Issues with Images & PDF downloads

On May 10, 2010, in Announcements, by Steffen Itterheim

I keep getting reports from users who either don’t see images on some lessons of the Tutorial and FAQs or who can’t download the Manual/Lesson PDF files.

The broken images usually fix themselves if you hit the reload button in your browser. You may have to wait a few minutes though. I’m still looking into what’s causing this. For the time being i have disabled the WordPress QuickCache plugin as i suspect it may have something to do with it.

If you can not download the PDF files and instead you get an error message which is formatted in XML like this:

This is because the links to the PDF files expire some time after you have loaded the webpage. A PDF link normally looks something like this:

Amazon’s S3 service will expire such a link after some time. Please do not share direct download links to the manual/lesson PDF files since they will expire, instead link to the lesson itself. If you have problems downloading the PDF, please reload the page and try downloading the PDF again.

I’m sorry about the inconveniences this is causing some of you.

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