PDF Pricing – Adamant Abandons App-Pricing

Adamant have abandoned their $1.99 app-pricing approach and returned to their normal sales prices because ” that it just isn’t sustainable for our business”.

The main Adamant site has just a short announcement but on Gareth-Michael Skarka personal blog there is a lot more detail.

The only inescapable fact is that the increases we were seeing were explainable by increased releases over the similar period, not by pricing. And even worse, by engaging in this experiment during the month of March, we made a huge mistake — completely taking the wind out of the sales of our second-best sales period of year, completely removing a much-needed cash influx. Even worse, it’s entirely possible that we could’ve have moved similar unit numbers, at the old pricing… which means that for every sale, we were essentially leaving an average of $3.00 on the table. …

There’s an old saying that goes: “When you find yourself in a hole, Stop Digging.” So that’s where I’m at right now. Everything seems to be pointing me at the conclusion that this model just doesn’t work for us. Maybe it’s just not for Adamant — but my hunch right now is that it’s market-wide. I think tabletop games may be too small of a niche for the model to work as intended. Again, that’s just a hunch — I can’t afford to keep up the experiment to prove it one way or another.

Personally I don’t think it is anything to do with market size but with the model. It ignores the well proven concept of price elasticity which basically states that your sales are only loosely connected to the price of your goods. See the results from my own pricing experiment Why Price Doesn’t Matter (Much) for more on this.

I feel for Gareth and Adamant Games. It’s hard running a business. It’s doubly hard to do something bold and following your gut but it is really, really, really hard to admit a very public mistake. I hope the experiment hasn’t done long term harm to the company. Show your support for them, go to their store and buy something.

One comment

  1. Sad news indeed.

    I really hoped that this pricing model had worked for them. Encouraging people to part with their cash (no matter how small the amount) is darned hard.

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