Shannon's Journal Discussion Thread, Vol. 5

[Shannon]

After thinking about this for a bit, I'd like to point something out.

The pricing model we use is based on generation of technology. Each generation gets more complex and more effective and powerful, and thus is more valuable; but at the same time, it gets more and more difficult to improve, develop and advance the technology and it gets more and more complex and difficult to build. That is also why the price goes up.

The price of a 5G program is $89.95 per copy, per stage. 5.5G is $114.95 per copy. But because of all of everything that has been going wrong -the cycles, the pandemic, etc. - I haven't raised prices according to generation since we went past 5.5G.

So 5.75G should be more; 5.75.1G should be more than that. 5.75.2G should be an increase. And so on.

I haven't done this because I understand that you guys are having a hard time, as a result of you being affected by the pandemic. Everyone is having a hard time right now. Everyone is hurting.

So that's a discount. You're already getting a discount on every 5.75.0, .1, .2, etc. program because of that.

On top of that, the US dollar is being printed at an insane rate, and it is losing value quickly now. Just in the last year, it's lost at least 10% of it's value, maybe more, because certain people in power who think they understand economics really have a lack of oxygen to their brains as a result of having their heads up their asses. Instead of doing the right things, they'd rather just try to print and spend their way out of the issue, which will devalue the US dollar more and more as more and more are put into circulation. History has shown time and again, this always leads to the same exact result, and it's not "Oh, yay, it worked!". And because the value of the US dollar is going down, the prices of goods are going up to compensate.

But we haven't raised prices. Because we understand you guys are hurting financially. Which means that as the value of the dollar goes down, we have the option of:

1. Accept less value for the same product by keeping the same currency and price.
2. Raise prices to compensate.
3. Change what currency we accept payment in.

Right now, I do not have a way to change currencies reasonably easily. That may happen in the future, but for right now it's not an option given our circumstances.

I don't want to raise prices, because I don't want to make it harder to buy my programs. I will only do that if I absolutely have to until all this financial BS blows over and it is something that my customers can handle dealing with.

Which means we are effectively getting paid less value in purchasing power, for the same number of dollars. Which is... a form of discount.

So you guys are getting a serious discount.

Now let's say I was raising my prices to match inflation, and I was still increasing them for each generation.

We'll estimate that the price of 5.75G went to US$199.95 a copy, and then we added just a measly $5 for each .1 at the end ($5 seems low to me, but we'll go with that).

That would mean that...
5.75G would be $199.95 before inflation.
5.75.1G would be $204.95 before inflation.
5.75.2G would be $209.95 before inflation.
5.75.3G would be $214.95 before inflation.
5.75.4G would be $219.95 before inflation.
5.75.5G would be $224.95 before inflation.
5.75.6G would be $229.95 before inflation.

Now if we add in inflation, just what's happened since January 2020, and we estimate it to be 10%, those prices become:
5.75.0G would be $219.95 a copy per stage.
5.75.1G would be $225.45 a copy per stage.
5.75.2G would be $230.95 a copy per stage.
5.75.3G would be $236.45 a copy per stage.
5.75.4G would be $241.45 a copy per stage.
5.75.5G would be $247.45 a copy per stage.
5.75.6G would be $252.95 a copy per stage.

Now these prices may be hypothetical, but they're not far off what they would actually be if I wasn't trying to avoid raising prices because I want to make sure you guys can afford my stuff. The problem is, by doing this, I have lowered the perceived value of my work, and now I have people doing things like asking if the price will go down because it's "only a focusfire". It being a focusfire means that it has a shorter script. That doesn't mean it's any less difficult to build, requires any less precision and attention to fine detail, or has less effectiveness or value. The value is still there. That's why the price is the same and set by generation.

Sooner or later the prices will have to go back to where they need to be - partly because I can't afford to keep prices artificially low forever, and partly because the perceived value can't be artificially low because I'm trying to be helpful instead of just do business and disregard my customers.

And even doing this, our sales are way down.

So please, keep in mind what is actually happening, and what reality is. $114.95 a copy for anything 5.75.5G and up is artificially low, and by a LOT. Please appreciate what I'm trying to do here, because I am taking a serious hit financially so you guys can still afford my stuff. Eventually, the prices will be corrected.