by PotKettleBlack » Fri Jun 17, 2011 3:05 pm
[quote:5599cc1c7f="Jerlins"]I'm heading to my store in a few minutes. Let's make sure I have this correct before waiting on my first customer.
Me: Hey Mike, how's your day going? Let's see here. You have 5 packs of Topps Baseball Cards, that will be $10 please.
Mike: $10? Your sign outside says they are $1. each. That's only $5.
Me: Business is slow here. Trust me, I appreciate your business, you've been loyal to me for so long. But I already have your business, and I'm trying to get new business, so am only offering that price to folks I've never seen before.
Mike: Well my wife is in the car, how about I have her come in and but these for me?
Me: What? That's being selfish. You're just scamming the system now. But I'll tell you what I'll do because you're such a great customer. You bring in a friend I've never seen before, I'll give him these same 5 packs for $5., and because you did so, I'll knock off 10% from your 5 packs, so you'll only pay $9. That's fair, no?
Ok, off to work now. Hope I have this correct.[/quote:5599cc1c7f]
You have this wrong and it's basically intellectual dishonesty to believe that you have it correct. A better analogy would be like this:
You: Hey Mike, how's your day going? Let's see here. You have 5 packs of Topps Baseball Cards, that will be $10 please.
Mike: I know $2.50 a pack has always been the price, and by getting five you're giving me a deal, but there aren't that many people to flick cards with, since a lot of your customers have grown up and stopped buying cards.
You: Well, I suppose I could offer new customers a couple free cards, then if they like that, I can offer them two packs at $1.75 a piece. You know, to get them hooked.
Mike: That sounds like it'd get some new folks in, enhance the game with the new blood and all. But why are you going to do that for complete strangers when you could offer me a bigger discount. After all, in an economy like this, I'm not sure I can continue to shop here.
You: This idea for new customers doesn't really affect old customers. Don't I give you good service and aren't I working on multiple fronts to improve the card experience, including, but not limited to expanding the card collecting community so you'll have more people to trade with and talk to?
I could go on and on, but your analogy is essentially wrong because you are not being charged more (and in economic terms you are being charged less than you were a couple years ago). Instead new players are getting a taste, so they can get hooked, and then drop 3-5 five packs a year.
There is a definite network externality in effect with this game that doesn't exist for a conventional retail business. The more people who are in the community of players, the more benefit you reap as a player. New players means more opportunity to learn from other people's experiments, to dominate people who don't understand the game, to talk baseball with a sabre geek, or a scouting geek.
I appreciate that the existing customers would like to be served more. I contend that we will be served better with more customers in the fold.