Today, I want to tell you a story. It’s a story based on real events. Are you sitting comfortably?
Once upon a time in a big posh office somewhere in San Fransisco, one business consultant/financial advisor, who was clearly overpaid and under-educated, walked into the office of his boss. His boss happened to be the big guy at one of the world’s leading virtual worlds. Obviously, I won’t name names here ;-).
“Boss,” he screeched in sheer delight! “I have the most amazing idea! This is the way to solve all the dissatisfaction from the clients you are completely overcharging for use of your service that is terribly unreliable.”
“Wow. Sit down,” responded the big boss (let’s call him Phil). “Let’s hear it.”
The young advisor was almost peeing his pants in anticipation of his latest idea. An idea, he thought, that would save this company’s backside and make them lots and lots of money!
“Well, Phil. You know these sims you sell at like $1675 and then totally rip people off $295 a month for the pleasure?” Phill nodded, dollar signs replacing his eyes as his entire mind became filled with thoughts of the cruises he’d enjoyed, the sports cars he had purchased and large house in which he resided. “Well, I think we should reduce them to $1000. You still get your big fat monthly chunk. But you make people think they’re getting such an awesome deal that, people being people, they’ll only think about what’s coming out of their pocket now. It will be great! You’ll make so much money!”
Phil stopped for a while. Was this young advisor really telling him to LOWER pricing? Could this really be happening? Was he paying this young fellow $100000 a year to tell him to cut his prices? But then it occurred to him. The young lad had a point. Slash these up front costs, it was the monthly fees that paid for the board of directors to have daily champagne breakfasts anyway! It was the monthly tier that paid the wages of the incapable technicians. He could indeed slash the purchase prices!!
“I like it,” he responded. “But I must ask you… is this really sustainable? I mean, there won’t be any long term consequences of such a drastic move?”
Taken aback by his question, the young advisor sat back in his seat and thought to himself, “Wtf is a con-se-quence?” He’d never heard such a long word before! “And this other one… su-stain-able?” The young lad was getting a little worked up. He decided he would dance around the question by answering,
“Everything will be fine, boss.”
And so the very next day, the move was announced. The people flocked to buy their reduced price sims (after a very long wait for some rather inefficient employees to have the land store back up) and everyone lived miserably ever after in a virtual world oversaturated by private estate sims with ever falling values….. THE END.
Ok, so not quite the happily ever after we might have liked. But that was my somewhat sarcastic way of posing the question: Which moron thought it would be a sustainable idea to cut prices on sims like that? Which fool thought that cutting existing owner’s land values by $695 per sim was going to provide customer satisfaction?? And why on Earth do aforementioned idiots like that get paid like 100k? Do big companies just advertise in newspapers along the lines of, ‘Moronic graduate wanted to pretend to be a business consultant and make rash decisions. You will be expected to wear a suit and tie and pretend to be intelligent. If you can’t manage intelligence, just pretend you’re typing and scratch your chin in a ‘thinking’ sort of way, occasionally making a stupid business suggestion here and there. Salary: 100000. Company car. Health insurance.”
In the long term, however, I am sure that those who’ve held their sims since before this all happened and who had establised private estate real estate companies will eventually be able to take some advantage… given that those ‘Hey, I could so do real estate’ people who flocked to buy cut price sims and are now finding it isn’t really working, are now selling theirs off at rock bottom rates, there’s fewer people who will go to LL for their new sims, I imagine.
Hmmm…..I wonder how long it will be before the blog announces, “Linden Labs to sell Sims at $100 because nobody’s buying from us anymore and we clearly don’t give a s**t about the potential consequences of this.”