What's the actual reason for limited time gem store items?

[SmirkDog.3160]

I've been waiting for months for the God-Slayer Bow Pack to come back, after I found out Renegades would use shortbows. I didn't get it when it was available because I didn't use them on my main character and didn't want to pay for a skin for an alt I hardly play. Since PoF was officially announced until now, it still hasn't returned. Meanwhile many things have been brought back multiple times. And then of course there's some things that have never come back ever. I've heard whispers of a plush ram backpack, that I've never seen in the store ever, but the wiki insists it was a gem store item.

 

I don't see the point for things being available for a limited time. It doesn't actually increase sales, because they make it available for one week out of the year. That makes 51 other weeks they could be making money off that item. If all items (or at least most) were available all the time, they would sell more gems. It's just a fact. So what's the actual reason for this sale """tactic"""?

[JSmooth.7654]

I'm not a business or marketing person. But, my guess is that it's a psychology thing. If something is only available for a limited time, we as consumers are more inclined to purchase it for fear of missing out... even if the item in question isn't really that great.

[CharterforGw.3149]

it being "limited" might make people think it won't return?

don't really have any knowledge about it specifically, just seems a possible reason to me

[TexZero.7910]

Time limited items force a sense of urgency and with urgency comes agency.

 

At the end of the day your goal is to get sales. If people think oh it's no big deal i can wait what generally happens is they do just that until either it's on sale or they regret not buying it sooner because it's no longer available.

[Witch of Doom.5739]

Yep, FOMO in action.

[Ashen.2907]

> @SmirkDog.3160 said:

> I've been waiting for months for the God-Slayer Bow Pack to come back, after I found out Renegades would use shortbows. I didn't get it when it was available because I didn't use them on my main character and didn't want to pay for a skin for an alt I hardly play. Since PoF was officially announced until now, it still hasn't returned. Meanwhile many things have been brought back multiple times. And then of course there's some things that have never come back ever. I've heard whispers of a plush ram backpack, that I've never seen in the store ever, but the wiki insists it was a gem store item.

>

> I don't see the point for things being available for a limited time. It doesn't actually increase sales, because they make it available for one week out of the year. That makes 51 other weeks they could be making money off that item. If all items (or at least most) were available all the time, they would sell more gems. It's just a fact. So what's the actual reason for this sale """tactic"""?

 

Your "fact" is not particularly factual. It may be your opinion, but it does not hold up in the real world of marketing and sales. Countless merchants and marketing teams have studied, tested, and implemented limited time only programs for decades (or longer) because they work.

[dace.8019]

[Artificial Scarcity](https://en.wikipedia.org/wiki/Artificial_scarcity "http://en.wikipedia.org/wiki/Artificial_scarcity")

[Dashiva.6149]

Yeah, I am usually taking that limited label with a grain of salt, since it is mostly for psychological effect. They may return at a later point with maybe a better pricetag which is great or they don't, well water under the bridge.

 

What I _am_ checking regulary are the sales tag. I heard a great saying once. "The early bird may get the worm, but the tardy harpy get the better deals".

[troops.8276]

It's funny in the digital market to have things like 'sales' and 'limited' when there is no supply and demand. Just demand. I mean are Anet running out of pixels? Did they massively overstock some items and they're taking up space in a warehouse somewhere...

[Ashen.2907]

****> @troops.8276 said:

> It's funny in the digital market to have things like 'sales' and 'limited' when there is no supply and demand. Just demand. I mean are Anet running out of pixels? Did they massively overstock some items and they're taking up space in a warehouse somewhere...

 

Just like every producer of a consumer product in the free world they are trying to maximize return on investment. They spend money to produce the weapon skin and want to make as much off of it as possible. Increased yield from any given investment means greater overall revenue and, potentially, greater ability to continue to develop products that people might want to buy.

 

If you were to make something, lets say a sculpture, and could choose between making $10 profit or $20, which would you choose?

[Gilgamesh VII.8690]

Same as any shop adding and removing stock and limited time times. It is standard in any shop. But with digital goods for sale you think they keep them all up all year round but will people spend real money on them if they did? The only reason is to get people to panic buy because it's on limited time offer. It's fair game in my opinion. Since everything from the gem store cam be bought with gold to gems.

[SmirkDog.3160]

That's great and all, but you see I didn't buy the thing because I didn't want it when it was available. There was 0 panic because I didn't want it in the first place. I would've bought it if it was still available, but since it's not, they're missing out on that sale until they make it available again. How does _that_ make more profit? Plenty of people (inb4 "uhmmmm that's not a fact that's your opinion" again) have wanted gem store items but they weren't available or couldn't afford them when they were, and had to wait months or just give up and never get it. How does _that_ make more profit?

[Danikat.8537]

It sounds crazy but it really does increase sales. Look at Pop-up Shops - an entire business type build around exactly this model.

 

Limited time sales in this case provide 2 benefits:

1) It allows them to sell a very large range of items without overwhelming their customers. If every single gem store item every made was available at the same time the list would be huge and some people would get bored with looking or confused or simply overwhelmed and give up on working out which armour or outfit or whatever they really want.

2) It gets people off the fence. If something is available permanently some people will keep thinking maybe they'll get it one day, or maybe not because it's not quite perfect, but maybe when they find the right things to go with it...and the whole time they're thinking that the company is getting precisely no money for it even though a potential customer likes their product. If it's limited time then that person needs to get on and make a decision and if they're not sure they're actually more likely to buy it so they have the option to use it later than not buy it and risk never being able to get it again.

 

We use similar techniques in my work, although with the "advantage" that the sense of urgency is 100% genuine, and it really does help a lot.

 

It's also incredibly annoying, especially when you decide you want something after it's no longer available. (Again even worse in my work. Wanna go see a dodo? Yeah, sorry you're too late, they're gone.) At least Anet usually do bring things back sooner or later, although later can sometimes be years later. At least once by the time they bought back an armor set I'd been waiting for I couldn't remember why I wanted it and so didn't buy it.

[Ashen.2907]

> @SmirkDog.3160 said:

> That's great and all, but you see I didn't buy the thing because I didn't want it when it was available. There was 0 panic because I didn't want it in the first place. I would've bought it if it was still available, but since it's not, they're missing out on that sale until they make it available again. How does _that_ make more profit? Plenty of people (inb4 "uhmmmm that's not a fact that's your opinion" again) have wanted gem store items but they weren't available or couldn't afford them when they were, and had to wait months or just give up and never get it. How does _that_ make more profit?

 

Because your one purchase does not determine degree of profitability for an item.

 

If 10 people that want to buy it are unable due to release schedule, but 20 others do buy it, though they might not have if they knew it would always be there, then the limited availability tactic has produced more revenue. In addition, by limiting availability there is less opportunity to save up gold to convert to buy the item. People are incentivised to buy gems to get the item before it is gone.

 

Anet doesnt necessarily make more money from YOU, but they make more money overall. I dont have Anets numbers, but this phenomenon is well researched and studied. There is a reason why it is so commonly used, and that reason is not because companies want to make less money.

[SmirkDog.3160]

That would work if it didn't take months or years to bring things back (and some things I have yet to see ever return). Like if they could rotate through their non-seasonal stock every month that would be a lot better. Or maybe give us some general idea of when things are coming back, like "hey x item is coming back on the 7th for a week, and y item is coming back on the 14th". I've been waiting since PoF was first announced for this item to come back, and it's the last item I want to complete my character's look. All this scarcity crap does is leave a bad taste in my mouth and leave me extremely disappointed with ANet. Some items stay there for months, while others don't ever return. There's no pattern to it, and that doesn't actually make me want to buy the bat wing backpack/glider combo, or whatever crap they bring back each week, because that's not what I want.

 

'Artificial scarcity' doesn't do anything if the scarce item isn't interesting to the consumer. Just check the threads about gem store items. Hundreds of posts about people who want specific items that are not there. Imagine all the profits from those items if they just brought them back.

 

> @Ashen.2907 said:

> Because your one purchase does not determine degree of profitability for an item.

 

Honestly pal you're being pretty condescending and I don't really feel like interacting with you specifically anymore. So.

 

[Gilgamesh VII.8690]

It's the idea that it is up for a limited time so it's get now or risk never seeing it for a long time and in turn it gets people spending real money to get the gems to get the item, which means more profits. If items was up all year round there will be no rush to get said items and people can save up to convert gold to gems with Anet not seeing any profits. So it's kinda nesseasery for Anet to make money.

[Djinn.9245]

> @SmirkDog.3160 said:

> > @Ashen.2907 said:

> > Because your one purchase does not determine degree of profitability for an item.

>

> Honestly pal you're being pretty condescending and I don't really feel like interacting with you specifically anymore. So.

>

That's not condescending, that's simply a fact. 1 person's desire for an item is not going to affect the company's bottom line.

 

It happens to be a common practice for businesses to have limited-time products even when they could have those products continuously. Look at McDonalds with the McRib sandwich, etc. McDonalds is one of the biggest companies in the world. I'm betting that they have a pretty in-depth market analysis on the pros and cons of having the McRib full-time vs. part-time.

[crashburntoo.7431]

> @dace.8019 said:

> [Artificial Scarcity](https://en.wikipedia.org/wiki/Artificial_scarcity "http://en.wikipedia.org/wiki/Artificial_scarcity")

 

It's a planned sales tactic. Urgency or "task tension" rises if there's a deadline, even if it's on something that you're only mildly interested in. If you have no interest, there should be no effect. The Disney vault concept is similar. Limited time only sales are designed to make you act quickly, before you have time to reason your way out of the buying decision.

[troops.8276]

> @Ashen.2907 said:

> ****> @troops.8276 said:

> > It's funny in the digital market to have things like 'sales' and 'limited' when there is no supply and demand. Just demand. I mean are Anet running out of pixels? Did they massively overstock some items and they're taking up space in a warehouse somewhere...

>

> Just like every producer of a consumer product in the free world they are trying to maximize return on investment. They spend money to produce the weapon skin and want to make as much off of it as possible. Increased yield from any given investment means greater overall revenue and, potentially, greater ability to continue to develop products that people might want to buy.

>

> If you were to make something, lets say a sculpture, and could choose between making $10 profit or $20, which would you choose?

 

Yes, that's the incredibly obvious and simple bit though isn't it. But unlike many industries there is no actual supply, material or production cost beyond the initial design. It doesn't really cost more to sell 10 skins or 20000, profit wont go down because of a lack of raw materials. Sure there are still bills to pay. Whereas your sculpture example is completely different. The laws pertaining to digital sales in many countries are terrible as well. The industry at large trying to act like the product has any inherent value beyond the sale it self. Maybe not Anet though. I don't know. I heard they got a pretty good returns policy. And on top of that there is some very dubious in game sales techniques towards an often young or desperate consumer base whom often defend their favourite company beyond what any reasonable consumer should.

[Djinn.9245]

> @troops.8276 said:

> > @Ashen.2907 said:

> > ****> @troops.8276 said:

> > > It's funny in the digital market to have things like 'sales' and 'limited' when there is no supply and demand. Just demand. I mean are Anet running out of pixels? Did they massively overstock some items and they're taking up space in a warehouse somewhere...

> >

> > Just like every producer of a consumer product in the free world they are trying to maximize return on investment. They spend money to produce the weapon skin and want to make as much off of it as possible. Increased yield from any given investment means greater overall revenue and, potentially, greater ability to continue to develop products that people might want to buy.

> >

> > If you were to make something, lets say a sculpture, and could choose between making $10 profit or $20, which would you choose?

>

> Yes, that's the incredibly obvious and simple bit though isn't it. But unlike many industries there is no actual supply, material or production cost beyond the initial design. It doesn't really cost more to sell 10 skins or 20000, profit wont go down because of a lack of raw materials. Sure there are still bills to pay. Whereas your sculpture example is completely different. The laws pertaining to digital sales in many countries are terrible as well. The industry at large trying to act like the product has any inherent value beyond the sale it self. Maybe not Anet though. I don't know. I heard they got a pretty good returns policy. And on top of that there is some very dubious in game sales techniques towards an often young or desperate consumer base whom often defend their favourite company beyond what any reasonable consumer should.

 

I don't think you could convince Microsoft that digital products don't have any inherent value :)

 

I understand what you're trying to say, but there is really no difference between a digital game and a physical board game, for instance. And many people enjoy Halloween decorations you purchase in a game as much or more than physical Halloween decorations they could purchase, etc.

[Ashen.2907]

> @Djinn.9245 said:

> > @SmirkDog.3160 said:

> > > @Ashen.2907 said:

> > > Because your one purchase does not determine degree of profitability for an item.

> >

> > Honestly pal you're being pretty condescending and I don't really feel like interacting with you specifically anymore. So.

> >

> That's not condescending, that's simply a fact. 1 person's desire for an item is not going to affect the company's bottom line.

>

> It happens to be a common practice for businesses to have limited-time products even when they could have those products continuously. Look at McDonalds with the McRib sandwich, etc. McDonalds is one of the biggest companies in the world. I'm betting that they have a pretty in-depth market analysis on the pros and cons of having the McRib full-time vs. part-time.

 

This.

 

My apologies if my post came across as condescending. A question was asked and I answered to the best of my knowledge and experience.

[Rauderi.8706]

> @TexZero.7910 said:

> Time limited items force a sense of urgency and with urgency comes agency.

>

> At the end of the day your goal is to get sales. If people think oh it's no big deal i can wait what generally happens is they do just that until either it's on sale or they regret not buying it sooner because it's no longer available.

 

Evil application of psychology, yes. :P

 

But there's truth in it. There's a number of outfits and other little things I'm waiting to go on sale that I might buy at full price if they were "going away" for a while.

Bonus marketing points if it's "7 days left" *and* "20% off".

[Ashen.2907]

> @troops.8276 said:

> > @Ashen.2907 said:

> > ****> @troops.8276 said:

> > > It's funny in the digital market to have things like 'sales' and 'limited' when there is no supply and demand. Just demand. I mean are Anet running out of pixels? Did they massively overstock some items and they're taking up space in a warehouse somewhere...

> >

> > Just like every producer of a consumer product in the free world they are trying to maximize return on investment. They spend money to produce the weapon skin and want to make as much off of it as possible. Increased yield from any given investment means greater overall revenue and, potentially, greater ability to continue to develop products that people might want to buy.

> >

> > If you were to make something, lets say a sculpture, and could choose between making $10 profit or $20, which would you choose?

>

> Yes, that's the incredibly obvious and simple bit though isn't it. But unlike many industries there is no actual supply, material or production cost beyond the initial design. It doesn't really cost more to sell 10 skins or 20000, profit wont go down because of a lack of raw materials. Sure there are still bills to pay. Whereas your sculpture example is completely different. The laws pertaining to digital sales in many countries are terrible as well. The industry at large trying to act like the product has any inherent value beyond the sale it self. Maybe not Anet though. I don't know. I heard they got a pretty good returns policy. And on top of that there is some very dubious in game sales techniques towards an often young or desperate consumer base whom often defend their favourite company beyond what any reasonable consumer should.

 

Profit might not go down due to cost of materials, but it can go up via an effective marketing and sales strategy. The point is that a producer can choose to make less profit or more. I dont think that choosing more, with a nonessential luxury item, particularly one with purely cosmetic function, is a bad thing. Particularly if it funds more things that players might enjoy.

 

Personally I take serious issue with certain aspects of Anet's business model, but choosing to limit sales on a purely cosmetic item is certainly not one of them.

[Lilyanna.9361]

> @SmirkDog.3160 said:

> That would work if it didn't take months or years to bring things back (and some things I have yet to see ever return). Like if they could rotate through their non-seasonal stock every month that would be a lot better. Or maybe give us some general idea of when things are coming back, like "hey x item is coming back on the 7th for a week, and y item is coming back on the 14th". I've been waiting since PoF was first announced for this item to come back, and it's the last item I want to complete my character's look. All this scarcity crap does is leave a bad taste in my mouth and leave me extremely disappointed with ANet. Some items stay there for months, while others don't ever return. There's no pattern to it, and that doesn't actually make me want to buy the bat wing backpack/glider combo, or whatever crap they bring back each week, because that's not what I want.

>

> 'Artificial scarcity' doesn't do anything if the scarce item isn't interesting to the consumer. Just check the threads about gem store items. Hundreds of posts about people who want specific items that are not there. Imagine all the profits from those items if they just brought them back.

>

> > @Ashen.2907 said:

> > Because your one purchase does not determine degree of profitability for an item.

>

> Honestly pal you're being pretty condescending and I don't really feel like interacting with you specifically anymore. So.

>

 

Perception is such a wonderful thing.

 

Someone thinks the other is condescending, when someone is providing legitimate facts.

 

Do you tell your doctor or health provider they are condescending when they tell you about your health.

 

Is someone condescending if they are trying to inform you how the world works. This is a business , and if these business tactics weren't 'successful, or they would get 'more money' from doing 'x' than they would have done away with it ages ago.

 

It clearly works because you have made a thread about said item and you want it, and questioning their motives.

 

But back on my major point, your perspective is telling you they are condescending, when reality they are providing you information. How you wish to take it is on you, and if you choose to not listen is also your choice. But don't sit there and try to point fingers about the way someone 'talks' because that is petty. Extremely petty.

[troops.8276]

> @Djinn.9245 said:

> > @troops.8276 said:

> > > @Ashen.2907 said:

> > > ****> @troops.8276 said:

> > > > It's funny in the digital market to have things like 'sales' and 'limited' when there is no supply and demand. Just demand. I mean are Anet running out of pixels? Did they massively overstock some items and they're taking up space in a warehouse somewhere...

> > >

> > > Just like every producer of a consumer product in the free world they are trying to maximize return on investment. They spend money to produce the weapon skin and want to make as much off of it as possible. Increased yield from any given investment means greater overall revenue and, potentially, greater ability to continue to develop products that people might want to buy.

> > >

> > > If you were to make something, lets say a sculpture, and could choose between making $10 profit or $20, which would you choose?

> >

> > Yes, that's the incredibly obvious and simple bit though isn't it. But unlike many industries there is no actual supply, material or production cost beyond the initial design. It doesn't really cost more to sell 10 skins or 20000, profit wont go down because of a lack of raw materials. Sure there are still bills to pay. Whereas your sculpture example is completely different. The laws pertaining to digital sales in many countries are terrible as well. The industry at large trying to act like the product has any inherent value beyond the sale it self. Maybe not Anet though. I don't know. I heard they got a pretty good returns policy. And on top of that there is some very dubious in game sales techniques towards an often young or desperate consumer base whom often defend their favourite company beyond what any reasonable consumer should.

>

> I don't think you could convince Microsoft that digital products don't have any inherent value :)

>

> I understand what you're trying to say, but there is really no difference between a digital game and a physical board game, for instance. And many people enjoy Halloween decorations you purchase in a game as much or more than physical Halloween decorations they could purchase, etc.

 

All most. The intellectual property is what has the value, re microsoft.

 

If all those Halloween decorations get sold and there is still demand, the company cant create more in the same way that a digital producer can. Finite v infinite supply. But it's just I'm an old grouch who doesn't like all these new fangled aggressive and sometimes subversive sales techniques.