27 Feb 09
If you were going to increase the site fee, you have to determine the price point where the increase in the fee offsets any losses caused by existing subscribers leaving the site due to the fee increase. Basic analysis.
In other words, Russ had to determine how much money he figured he could get out of you all without you getting mad and dropping your subscription. I imagine the conversation with himself might have went something like this....
Russ: "mwa haha ha. (rubs hands back and forth quickly) How much money should I charge these chumps? Hmm, 50 bux each seems asthetically high and might make them leave. They'd easily pay 25 or 30 bux. How bout somewhere in the middle. 40 bux? I'm basically doubling the fee so even if 50% of them left, i'm still makin cash. Plus, I don't think these addicts can leave the site anyway. 40 bux it is......now to book that vacation in Hawaii!!"
27 Feb 09
Originally posted by uzlessI've said this before but i'll repeat it.. The site is run from the UK, but sells subscriptions in US dollars. The exchange rate from UK pounds to US dollars is the lowest it's been since i was born. The costs to keep the site running (and pay Russ's wages) have not gone down, i wouldn't be surprised if they have gone up. Russ did not earn a living wage from this for the first few years, whether he can draw a wage from the current subscriptions, i don't know, but i do know that he deserves a living wage from it as he puts a lot of time and energy into it.
If you were going to increase the site fee, you have to determine the price point where the increase in the fee offsets any losses caused by existing subscribers leaving the site due to the fee increase. Basic analysis.
In other words, Russ had to determine how much money he figured he could get out of you all without you getting mad and dropping your sub ...[text shortened]... icts can leave the site anyway. 40 bux it is......now to book that vacation in Hawaii!!"
The increase in price this year is steep, people have a right to be annoyed by that and i'm sure some will leave. However, do bear in mind that the price of money has a big bearing on whether the site earns any money or not. If it does not earn money then it's not worth running. Russ worked for free on this site for several years and deserves an income from it. It is still the cheapest CC site i have found. Chess.com is $50 a year, Gameknot $39.99 (but that is not a full subscription, that costs $89.50 and even that has a game limit of 200 concurrent games). RHP is very competitive, it has been under valued for years.
27 Feb 09
Originally posted by MarinkatombThe pound is down. Please explain how that has any relevance in an increase of the price in USD. If more dollars buy more pounds, then Russ gets more pounds even if the subscription price in dollars stays the same.
I've said this before but i'll repeat it.. The site is run from the UK, but sells subscriptions in US dollars. The exchange rate from UK pounds to US dollars is the lowest it's been since i was born.
- Joined
- 10 Jan 08
- Moves
- 19034
27 Feb 09
Originally posted by Marinkatombah, what?
I've said this before but i'll repeat it.. The site is run from the UK, but sells subscriptions in US dollars. The exchange rate from UK pounds to US dollars is the lowest it's been since i was born.
a year ago you got $2 for £1 now it's about $1:45.
so for a person converting from £ to $ would've paid £20 a year ago to make up the now $40 fee. where as now if a new sub comes along from the uk he has to pay £27:57 to cover the $40 fee.
although people in the states continue to pay $40 russ converting it into £ it hugely in his favor now. a year ago he would've only got £20 for the $40 but now he's getting £27:57 from everyone.
the recent currency change is GREAT for russ and i suspect the change is more due to the fact that he was losing money a year ago when it was so bad for him.
think about it.
27 Feb 09
Originally posted by PalynkaNot when it originally increased, the change happened when the dollar crashed. You're right i should have made that clear.
The pound is down. Please explain how that has any relevance in an increase of the price in USD. If more dollars buy more pounds, then Russ gets more pounds even if the subscription price in dollars stays the same.
27 Feb 09
Originally posted by MarinkatombHighly recommended.
I've said this before but i'll repeat it.. The site is run from the UK, but sells subscriptions in US dollars. The exchange rate from UK pounds to US dollars is the lowest it's been since i was born. The costs to keep the site running (and pay Russ's wages) have not gone down, i wouldn't be surprised if they have gone up. Russ did not earn a living wage ...[text shortened]... t of 200 concurrent games). RHP is very competitive, it has been under valued for years.
27 Feb 09
1 edit
Originally posted by zakkwylderUm, epic failure on your part you mean.
Its called inflation, I'm sure even Russ is feeling it. The cost of energy is always on the rise and I'm sure he uses quite a bit running these servers continuously. Not to mention parts upgrades and cost of living increases so he may have needed a raise.
Epic failure on your part.
inflation is running at about 1% right now. The fee increased 50%.
Energy prices have remained stable and have recently DROPPED due to the global recession.
cost of living increase is usually tied to inflation because a cost of living increase is supposed to maintain your CURRENT standard of living, not improve it.
EPIC FAILURE ON YOUR PART.
Please try again.
By the way, my original post is exactly what EVERY company does when determining price points.
28 Feb 09
Queen Alice is free though they will accept a donation. There are no ads. They have forums, tournaments, and unlimited games. Many helps which I have not even bothered to check out. I have just found my first friend, however. Most of the players are from South American countries as it originates in Brazil, and they won't chat with me, which drives me nuts.
- Joined
- 10 Jan 08
- Moves
- 19034
28 Feb 09
Originally posted by ale1552what language are the forums in?
Queen Alice is free though they will accept a donation. There are no ads. They have forums, tournaments, and unlimited games. Many helps which I have not even bothered to check out. I have just found my first friend, however. Most of the players are from South American countries as it originates in Brazil, and they won't chat with me, which drives me nuts.
28 Feb 09
Originally posted by uzlessWell 39$ really isn't much, especially when you compare it with some other sites. He has the right to increase it. I don't think they are making fortune with RHP anyway. What should they do... Be volonteurs ?
Um, epic failure on your part you mean.
inflation is running at about 1% right now. The fee increased 50%.
Energy prices have remained stable and have recently DROPPED due to the global recession.
cost of living increase is usually tied to inflation because a cost of living increase is supposed to maintain your CURRENT standard of living, not impro ...[text shortened]...
By the way, my original post is exactly what EVERY company does when determining price points.