Market Report Part 3

Part 3

So we have looked at print vs. e-published products and how print has a lot of downsides to it. This does not mean, however, that e-publishing does not also have its downside. While we have seen that product sells product, what does that mean?

It means you have to feed the beast, and it’s a hungry beast.

What do I mean with this statement? Well PDF’s have a lifetime sales number. Generally it is around 25 copies. Yes, it will continue selling, but at a very slow rate after that magic number has been reached. Do all products sell 25 copies? No. Do all sell more than 25? Some, though 25 seems to be the basic point that all PDF’s will reach.

This is the number that we shoot for; it’s what I base all our calculations on to determine what a product will cost, how much we can spend, and how much we can expect to make on it.

With that in mind you can see that, in order to maintain its position in the market, Avalon has to continue to produce, not just some products each year, but a lot of products. And in order to grow we’ll have to produce even more. We publish more than 200 products a year. Yes, some are small, selling for a single dollar, but most go for the magic number of $4 to $6. So we have to be continually putting out new stuff to keep the beast fed. Stop putting out new products each month and we watch our gross drop.

There are other down sides as well. Overload the market and you kill off sales. I have seen this several times with some of our stuff and other publishers. Take for example our Avalon Pathfinder line. Small, cheap Pathfinder adventures. At first they did well, but over the course of a year and a half, sales have dropped off. Why? Some of it has to do with adventures in general; they tend to not keep their strength. Another factor, though, is that we have overloaded the market with them. Too many of them and they get stale. So once we see that a product line is not living up to its potential, we kill it off and move on to new stuff. Will these small products continue to sell? Sure, as long as we keep them up they will generate profits.

So product sells product, but there has to be a limit. There has to be a point where this will stop being a valid way to do business. Will we still be doing this at 1,000 products? Yes. At 5,000 products? I can’t see that happening.

Where then does Avalon have to change, and change into what?


1 Comment

  1. July 23, 2011 at 3:33 pm

    […] Games recently posted Part 3 of a multi-part Market Report talking about how print products have a lot of downsides to them (and […]

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