Pricing of upgrades
2002-02-18 by Alexis Aiosa
This is very frustrating to deal with people who don't see this. It is like pointing out color swatches to a blind man. So I am going to show you this. Just kind of try and follow it and you will see. > Why? The development time that went into the feature set of 4.0 has not depreciated. > In fact it has *appreciated* because of all the added features and functionality that > was impliemented in the the various 4.x subreleases for no additional charge. If you go out now and buy Logic Audio v4, you can still buy it for $479.00 over the counter, then purchase the v5 upgrade for 150.00. You are now paying 629.00. Now you can still go out and find LA v5 for 699.00. That is a 70.00 dollar difference. So therefore, a slight advantage to the new user, because they saved 70.00. However, if you take the value of 699.00 for v5 and then minus the value of version 4 over the counter, it now totals to a 220.00 difference. So, in effect, the pricing has gone down for LA v4. In other words, IT is considered *Antiquated Technology* that is why it is cheaper to buy over the counter. Now if you take the new price of today 949.00 (999.00 MSRP) for version 5 and deduct the amount of version 4 at 479.00. That is a 470.00 dollar difference. Again, showing that version 4 is now priced as *Antiquated Technology*. So, your logic is flawed. It has not *appreciated* it has effectively *depreciated* in value of current market place. The truth being, it is v4 and sitting right next to it is v5. Now in using your method of thinking, since the price of v5 just went up from 699.00 to 999.00, then effectively what you are saying is, your upgrade from v4 to v5 should be 199.00. The cost of an upgrade is usually roughly 28% of the over the counter price. So, in effect my upgrade is 399.00. Yes, but then you should be paying 199.00 and not 150.00. Here is why... 1. Your current upgrade path from v4 to v5 automatically is, 699 x 28% = 195.72, then round up and you have 199.00. 2. Yet somehow they equated an 25% break in price to you. So, your price is now 199 - 49.75 = 150.00 rounding up. But then this is factoring in the 699.00 price. Or they just automatically just charged you 25%, but yet have failed to pass that onto me. 3. Now if your upgrade price is based on the, 999.00 MSRP. Then 999.00 x 28 percent is now 279.72, yet you receive the 25% markdown. So in effect that is 279 - 69.75 = 209.75. So, in effect round down and you have 199.00. So you should be paying 199.00 for version 5 upgrade. ROTFLMAO! 3. So, in effect, your current upgrade to version 5 is based on the 699.00 price, and then reduced 25%. This not only to you, but everyone else who has version 4. Or this number is based more closely to 699 x 22% = 153.78 then round down to 150.00...to which I am not getting any advantage of that pricing either. 4. So now if my upgrade is in fact based on the 699.00 (which it isn't). Then, 479 x 28 percent = 134.12. Then add in 195.72 which comes out to 329.00. Without the 25% discount is still cheaper than 399.00 right? Yet take into account the 25% discount on the price, then that does put my cost into the vicinity of 246.75, then round up 249.00. 5. Now if they are giving you a rough 25% break on just the upgrade price, which is roughly 50.00, then my price could in fact be 329 - 50 = 279.00. Now round up or down, doesn't matter, but it is still obvious to the fact that it is no where near the cost of 399.00. LOL. 6. AGAIN, if you were to upgrade based on the 999.00 value. Then that would be 999.00 x 28 percent which is now 279.72 - 69.75 (-25%) = 199.00. <----your price. :-P 7. Now, for me, at 999.00 x 28 percent is now 279.72 which than if you add in the amount of 134.12. Than that is 413.24. Round down, is 399.00. <-----this is my price. :-( No discount, and yet basing my pricing around 999.00 (MSRP) at 28%. Yet, now cut me some slack and give me the 25% break, like they gave you at the 699.00 value of the upgrade! 399 - 99.75 = 299.00. Which to me is still better, when you consider all the other cost I have to absorb in upgrading. Right. The cost of tax, shipping, dongle juggling and insurance. 8. Now since you are NOT paying the 28% of the 999.00 price of the upgrade, then why should I? Right, because if not, then everyone here has to pay 199.00, otherwise no fair, in fair market blue book value. So the question to you my friend is, where does this extra 100.00 dollars coming from? Short of being punished for not upgrading. Now in looking at it this way, then one starts to see that maybe both of us should get the 25% break, right. Or why am I paying the full 28% based on the new 999.00 (MSRP) and you get to pay based on the 699.00 (MSRP)? Because I don't think you want to pay 199.00 at this point. What I am privvy to my friend is fair market value...not some *antiquated* two year old price. Or some funky, moral abstract, guilt trip and sudo obligation ideology of me considering subreleases as some way of making me think Emagic is some noble entity passing down gifts of ambrosia from the sky. No, you get the upper hand value of the 699.00 (MSRP), and I get the underhand value increased based on the 999.00 (MSRP). No way...not gonna happen. And, yet it seems more like your upgrade is based more on 22% of the 699.00 price, which then would change thing considerably. LA v4: 479 x 22% is still 105.39 round down is 99.00 LA v5: 699 x 22% is now 153.78 round down is 150.00 <---you upgrade price :-P LA v5: 999 x 22% is now 219.78 round down is 199.00 Add 99.00 + 150 = 249.00 based around the 699.00 MSRP or Add 99.00 + 200 = 299.00 based on current 999.00 MSRP I don't see where any of this equates 399.00 as fair market value. And yet look at this: LA v4: 479 x 28% is still 134.12 LA v5: 699 x 28% is now 195.72 LA v5: 999 x 28% is now 279.72 Add 134.12 + 195.72 = 329.84 (329.00 round down) based around the 699.00 MSRP or Add 134.12 + 279.72 = 413.84 (399.00 round down) based on current 999.00 MSRP You pay 22% of the 699.00 (MSRP). And yet, I pay 28% based on the 999.00 (MSRP). How is that effective judgement on Emagic's part? Or yours, for that matter. No matter how I do it, if I bought the promotion or not. The math here is not right. No matter how one breaks it down. I am still paying more than you. Something is quite funky in paradise, and yet most don't see it. It is like I have spell it out like "See Jane go to the store. See Jane get ripped off by store clerk." Peace, Alexis [Non-text portions of this message have been removed]