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-   -   What determines the price of an RE? (https://www.propellerheads.se/forum/showthread.php?t=169943)

Dogboy1973 2012-10-28 06:42

What determines the price of an RE?
 
I've been thinking about this again following the recent discussions around the Polar RE sale price. What factors determine the price of a particular RE in the first place? Is it features? The quality of the effect? Production time? The size of the development team? the VST/Plug-in counterpart?

I don't intend to start another thread about the prices of Rack Extensions. I'm just interested in how pricing is derived. But for the record I think RE's are generally very well priced, with some RE's a bit overpriced & others I'd frankly be happy to pay a lot more for! It all comes down to how much an individual values what's on offer. But how do developers decide on pricing?

platzangst 2012-10-28 07:11

Aren't there as many potential answers to this as there are developers?

Some of it is bound to be simple business math. How many people do you have writing code and making graphics, how long do they work and how much is their time worth - factored in with your best estimates of how well (and how long) you think your RE will sell. After that it's kind of up to the individual outfits. Any or all of your mentioned factors, and probably a few more besides, can come into play.

sbader 2012-10-28 08:47

This is just an observation based on this topic.

Rack Extension developers, including Propellerhead, are free to determine the price of each of their REs, and I would imagine there are a multitude of different reasonings behind each pricing.

For example if we start at the bottom, some developers will chose to give away a RE for free. This might be for promotional purposes to create some sort of branding relationship with the RE market, or the simple will of wanting to contribute and give back to the user community.

Then you have your $9 REs. From what I've learned this is the lowest price you can set as a RE developer. As it currently stands, it seems like, what I would call, "the independant developer", has been releasing such REs. These devices, from the looks of it seem to be "utility" cv type REs. Some of which are straight and to the point, but never the less are all brilliantly designed. I personally like this type of RE, as it really plays into the modular aspect of Reason. These developers can be pretty heavy Reason users, and for that reason (no pun intended), you might see devices made out of necessity, which makes sense since these are typically cv utilities. I have yet to see an effect or instrument RE at this price point.

I would love to see more modular REs like dedicated vcos, vcfs, vcas, and adsr types. We already have pulsar which is absolutely fantastic as an lfo, and can also double as a wicked set of oscillators.

Then you have your $19-$49 range. This is where it starts to get more cloudy in terms of pricing and type of RE. So far we are seeing mostly studio fx, some creative fx, and a couple instruments (if you include pulsar as an instrument). I would imagine developers releasing REs in this range, have to start weighting the time and resources spent developing the device, functionality, what they predict the market will pay for such a device, and whether or not it's a straight "plugin" port or not. I've also noticed, in this range, we have smaller, but still well known software developers (with the exception of few).

Last but not least, we have the $50-$200 range. Most of these REs seem to be some sort of port over from a pre existing "pre priced plugin" with the exception of Props higher functionality REs, and one very awesome realtime sampling/granular/glitch RE, that I hold so close to my heart. In this range, if the RE is a port, the developer has to be reasonably competive with their pre existing plugin counter part (as long as it is an actual port). This is where I think you'll see most of the "big boy toys", such as synthesizers/romplers/samplers with "über" functionality, and really "out of the box" thinking creative fx. Basically, creative and useful sound generators and manipulators.

At the end of the day, I think the market will decide what stays and what goes, developers can chose to price their products how ever much they desire, but it's the user that will determine whether the developer continues to release REs. I personally can't see a developer continuing to release over priced REs that nobody buys, just due to the overhead and development costs involved. They will either stop releasing REs, as it just won't pay to release them, or they will lower their prices, to hopefully generate more sales.

So if you really like what a particular RE developer is releasing, and the price point is correct (for you), you should probably pick up that RE you've been eyeing in the propshop. Support the developers you like and encourage them to release more wonderful devices at said given price point. I also recommend using the try option in the store if you are unsure of a device's functionality, or if it is even right for you.

EnochLight 2012-10-28 14:07

Quote:

Originally Posted by sbader (Post 1165896)
This is just an observation based on this topic.

Rack Extension developers, including Propellerhead, are free to determine the price of each of their REs, and I would imagine there are a multitude of different reasonings behind each pricing.

For example if we start at the bottom, some developers will chose to give away a RE for free. This might be for promotional purposes to create some sort of branding relationship with the RE market, or the simple will of wanting to contribute and give back to the user community.

Then you have your $9 REs. From what I've learned this is the lowest price you can set as a RE developer. As it currently stands, it seems like, what I would call, "the independant developer", has been releasing such REs. These devices, from the looks of it seem to be "utility" cv type REs. Some of which are straight and to the point, but never the less are all brilliantly designed. I personally like this type of RE, as it really plays into the modular aspect of Reason. These developers can be pretty heavy Reason users, and for that reason (no pun intended), you might see devices made out of necessity, which makes sense since these are typically cv utilities. I have yet to see an effect or instrument RE at this price point.

I would love to see more modular REs like dedicated vcos, vcfs, vcas, and adsr types. We already have pulsar which is absolutely fantastic as an lfo, and can also double as a wicked set of oscillators.

Then you have your $19-$49 range. This is where it starts to get more cloudy in terms of pricing and type of RE. So far we are seeing mostly studio fx, some creative fx, and a couple instruments (if you include pulsar as an instrument). I would imagine developers releasing REs in this range, have to start weighting the time and resources spent developing the device, functionality, what they predict the market will pay for such a device, and whether or not it's a straight "plugin" port or not. I've also noticed, in this range, we have smaller, but still well known software developers (with the exception of few).

Last but not least, we have the $50-$200 range. Most of these REs seem to be some sort of port over from a pre existing "pre priced plugin" with the exception of Props higher functionality REs, and one very awesome realtime sampling/granular/glitch RE, that I hold so close to my heart. In this range, if the RE is a port, the developer has to be reasonably competive with their pre existing plugin counter part (as long as it is an actual port). This is where I think you'll see most of the "big boy toys", such as synthesizers/romplers/samplers with "über" functionality, and really "out of the box" thinking creative fx. Basically, creative and useful sound generators and manipulators.

At the end of the day, I think the market will decide what stays and what goes, developers can chose to price their products how ever much they desire, but it's the user that will determine whether the developer continues to release REs. I personally can't see a developer continuing to release over priced REs that nobody buys, just due to the overhead and development costs involved. They will either stop releasing REs, as it just won't pay to release them, or they will lower their prices, to hopefully generate more sales.

So if you really like what a particular RE developer is releasing, and the price point is correct (for you), you should probably pick up that RE you've been eyeing in the propshop. Support the developers you like and encourage them to release more wonderful devices at said given price point. I also recommend using the try option in the store if you are unsure of a device's functionality, or if it is even right for you.

Great answer, and I totally agree. Plus, it's a much better answer than what mine was going to be.. which was "a box full of monkeys, a toss of rune stones, and/or baby Jesus".

Lunesis 2012-10-28 14:30

I was gonna say, $1 per knob, $5 for sliders and $20 for a decent paint job.

VillaNDubstep 2012-10-28 15:02

Quote:

Originally Posted by Lunesis (Post 1166041)
I was gonna say, $1 per knob, $5 for sliders and $20 for a decent paint job.

That would make ReStereo $4 :)

Lunesis 2012-10-28 15:24

Quote:

Originally Posted by VillaNDubstep (Post 1166058)
That would make ReStereo $4 :)

... Doh!

Mate 2012-10-28 15:25

Quote:

Originally Posted by VillaNDubstep (Post 1166058)
That would make ReStereo $4 :)

Right, but I think you meant 4 cents! :D

charlycharlzz 2012-10-28 16:49

the numbers lol !
no just kiding! it's the developers that set it up I think and they determinate it by judging they own work !

Dogboy1973 2012-10-29 03:42

Quote:

Originally Posted by Lunesis (Post 1166041)
I was gonna say, $1 per knob, $5 for sliders and $20 for a decent paint job.

Quote:

Originally Posted by VillaNDubstep (Post 1166058)
That would make ReStereo $4 :)


LOL. When I read Lunesis post I imagined someone would bring up ReStereo! :)

But lets take it as a case in point - Why is ReStereo (for example) $69? What makes it worth that amount? I'm obviously not a developer so I really don't know. But I look at ReStereo and see a GUI that looks like something I could have knocked up in PS in under 5 minutes. Not that important but the first bite is with the eye, so not a good start for ReStereo at that price. Then there is the effect itself. I like it. It definitely does nice things. The developer makes it out to be quite an advanced effect. But is it? What do I know about it?! Not that much at all beyond what I see and hear. So it's difficult for me to justify the price, hence I don't buy it & why I'm asking these questions!


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