Gem discount

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Originally Posted by PhilISuppose

By the way, in my head I read all your posts in the voice of Judge Judy.

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Mission accomplished.

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Originally Posted by zachUVA

Your explanation isn't necessarily true. Think about it; if you sell 50 candy bars for $1 each, then decide to have a sale where you sell them for $0.50 each, you would need to sell 100 candy bars to still get the same amount of revenue. It depends on how large the discount is and how strongly customers react whether or not you see more revenue. You are correct in saying there would likely be more sales, but it's not necessarily true that this would actually benefit SC. I would say SC has weighed the options here and probably has a good sense of what would really happen if they were to do this.

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It really is economics though. I would love to have my collectors juiced 24/7, but at the current price point, I buy no gems. As soon as 1 gem boosting is in effect, I buy. The price has dropped below my threshold. You're operating on the assumption that the same amount of people are buying in both situations. In the example above, you sold 50 candy bars at $1 each. If the price went down to .5 per, yes, you would have to sell double, but you've most likely crossed a threshold where more than double will buy, thereby increasing overall revenue. Typically there is a cost associated with a good that can prevent this sale tactic from working, but I would assume that operating costs are fairly fixed and not floating based in gem purchases.

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Originally Posted by UncleJemima

That is not how discounts work... Why do you think companies lower prices? To bring in MORE money... Lowering prices increases the number of people buying their products which = more money. Everyone is happy. Take an economics course before leaving a cynical comment like yours.

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Consider the fact that CoC is at the top of the profitability charts. Any price campaign you do needs to increase sales quite a bit for you to make more then you would have made without the campaign. Since CoC is at the top of the charts regular campaign would more likely guide buyer behaviour to stockpiling during the campaigns, which would then decrease the overall profitability of CoC.

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Originally Posted by M4verick

It really is economics though. I would love to have my collectors juiced 24/7, but at the current price point, I buy no gems. As soon as 1 gem boosting is in effect, I buy. The price has dropped below my threshold. You're operating on the assumption that the same amount of people are buying in both situations. In the example above, you sold 50 candy bars at $1 each. If the price went down to .5 per, yes, you would have to sell double, but you've most likely crossed a threshold where more than double will buy, thereby increasing overall revenue. Typically there is a cost associated with a good that can prevent this sale tactic from working, but I would assume that operating costs are fairly fixed and not floating based in gem purchases.

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Are we still pulling numbers out of our rear to support this nonsense? Of course it could theoretically boost profits. It could also theoretically lower them.

Supercell isn't stupid.

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Originally Posted by dahimi

Are we still pulling numbers out of our rear to support this nonsense? Of course it could theoretically boost profits. It could also theoretically lower them.

Supercell isn't stupid.

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Obviously supercell isn't stupid, but some would fare better if they brushed up on price elasticity and supply/demand relationships. Hypothetical numbers are used for people who need a picture to understand math. Sorry i can't paint a picture for you, chief.

If there was a discount i d spend the double what i m spending now but if the discount rate is good only. You cant know if SC will do more or less profit. In trading you must try things if its working well for you..