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Old 08-07-2014, 10:41 AM   #53
Ivo Scheloske Ivo Scheloske is offline
Active Member
Aug 2014

Originally Posted by Simon Lewis View Post
I was very pleased with The Monolith Monsters.
Hi Simon,

thank you very much for your praise. This is very much appreciated. Also in this case I have to forward it to Universal as they provided us with very good masters.

Originally Posted by Simon Lewis View Post
It would be good if your future releases are not limited to 1000 copies and it would be nice if your prices are a bit cheaper.

Limitation vs. pricing is a delicate topic, which all the time leads to heated discussion on the german boards. There are three lessons that we had to learn the hard way:

1) Just because the price is low doesn’t mean the people will buy it. In our field there is a very limited number of people who are interested in classic genre films. Beginning of the new century we licensed a package of Hammer films for the first time, being convinced that the name “Hammer” is a brand recognized by lots of people and their iconic monsters a valid selling point. We released those films on DVD for the (back then) very decent price of 15,00 EUR, stuffed with bonus material and basically available in every store. Our distributor even managed to have most of the shops create a special Hammer section. Despite lots of advertising and amazing reviews in the press, most of the 20 titles did not sell more than roughly 2500 copies. Even worse, a box set in which we packed the first 5 titles (as they were otherwise available as single editions) for a much reduced price didn’t even sell 100 copies. Leaving us with a loss of nearly a 6-figure sum.

2) As I have just explained offering our products for prices comparable to those the major studios charge for their products does not work for us. But: If we would give the people the choice between one our products or two blockbusters for the same price (as our one product), people will always decide for the 2 blockbusters and tell themselves that they will buy our product later. Only, later usually never comes because there are always two blockbusters available for a cheap price. Hence, we have to give the people the incentive “buy now or it will be gone for good”. This is where the limitation comes in place. Without it, the turnaround of our stock will take ages and the little we actually gain from those titles will be eaten up by our monthly costs. Plus, very likely the worst case scenario will happen: In order to sell THEIR stock quicker dealer will lower the prices on our products, showing everybody: If you wait long enough you get it for a much better price. Which initiates a fatal (for us) spiral, because everybody who bought previous products for the initial price will next time wait until it drops.

3) The philosophy: As we expect our customers to pay lots of hard earned money for our products, we would like to at least “reward” them with the knowledge that our limitation is genuine (we will not manufacture more, even if we have miscalculated and there is still demand) and that the prices will not drop. Meaning, even years later you will be able to sell our special editions for the same price you bought it or very likely even way more. They usually don’t loose their value. In order to keep it that way, we “dismantle” re-releases. For example, the Universal titles that we now release on Blu-rays were previously available on DVD. More expensive, but also featured tons of bonus (for example, an exclusice commentary by Mick Garris for MONOLITH MONSTER). This bonus is not included on the Blu-rays in order to NOT bring the value of the initial product down. Because, one thing for sure: People really get pissed when they bought a high priced product and later an upgraded version is released for a cheaper price.

That the philosophy “limitation beats lower prices” is a fact that is nicely demonstrated by our current series of Hammer Blu-rays. The limited Mediabooks are usually sold out by the time the street date arrives. The unlimited version in a standard case (offered at a lower price) doesn’t even come close to the numbers we sell from the Mediabooks. We did decide to put out two versions, because a lot of people (or so it seemed) asked for an unlimited edition. But now “nobody” wants it. Leaving us with a bunch of unnecessary costs.

I hope that explains a bit why we use this high-price-and-limitation approach.
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Thanks given by:
BigManDeath (08-07-2014), bruceames (08-10-2014), Keyser Soze. (08-11-2014), Moonlight Shadow (08-07-2014), Simon Lewis (08-08-2014), tenia (09-28-2015), Torrente (08-07-2014)