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He Who Makes The Rules Gets The Gold

by David Maschke
4 replies
  • OFF TOPIC
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Special thanks to the dude who posted the video of the autistic kid who is a genius. So I spent some time thinking instead of learning.

I realized a couple of days ago that the saying, "He who has the gold makes the rules" is wrong.

It seems that he who makes the rules gets the gold.

What if there was an offer where if someone purchased, the price drops? What would happen?

A couple of assumptions, the copy is good enough where a lot of people want to buy, and they are rational enough to know the ramifications of waiting.

We'll call the method the "off topic" sales machine. Only 500 sales will be made.

As time goes on, they know demand will increase, and the chances of getting in the deal starts to diminish very, very rapidly. So it's in their best interest to buy at a higher price.

(It seems to me that it isn't people can't think, but they just don't know what to think about, myself included on top of the list)

What are your thoughts?
  • Profile picture of the author seasoned
    I'm sure it has been purposely done short term. It certainly happens long term. Processor manufacturers used to certainly work that way. Molded products, etc... often work that way. SOMETIMES, the first buyers have final say as to how the product will be designed.

    The one that has all the gold makes the rules. Making all te rules won't necessarily get you all the gold. AGAIN, it has been tried.

    Steve
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  • Profile picture of the author David Maschke
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    • Profile picture of the author Kay King
      the chances of getting in the deal starts to diminish very, very rapidly
      That might not happen if no one is willing to buy at the initial higher price.
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      • Profile picture of the author David Maschke
        Originally Posted by Kay King View Post

        That might not happen if no one is willing to buy at the initial higher price.
        You bring up a very good point, and I've been going thru that in my mind too. There would have to be an additional reward for those who buy at a higher price. Two or three 100% commission licenses to those who buy early is one possibility. Give the affiliates who make the first sales the same reward too.

        This pricing model can be superior to the incremental price increase model commonly used today within the internet marketing niche.

        It's human nature to wait to make a purchase. Trying to force it creates friction. If I wait to buy, and tomorrow the price is higher, I have less incentive to buy. Why purposely screw up a perfectly good engine?

        However, with the price decrease model, you're going with the flow of human nature. If a dude comes back tomorrow, and the price is lower, now that's something to get the blood flowing. A finely tuned engine that creates more horsepower out of thin air.

        Price elasticity is a major factor here too. $25 that drops to $22 at the end. Big freakin deal. $25 that drops to $4 is a huge deal.

        It becomes a game of chicken between the other buyers.

        In a sense, what I'm asking, does it make sense to build up the dam, when your aim is to open the floodgates?

        There is one thing about this model, though. The max profit would be set in stone. That can be a good thing, or a bad thing, depending on how you look at it.
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