Author driven pricing on ThemeForest in numbers

I’m so sorry I’ve messed up with information about ROSA. Indeed, There was only one price change and that was an increase. I’ll edit the post immediately. Thanks for noticing!
By the way, nice move in pricing policy! Good luck with furthrer sales!

Thanks for such a reccomendation, @swlabs! We’ll add it in the next major update.

@Stattie No problem :slight_smile: We’re sad to see such an omnipresence discounted market but hopefully, your stats will shed some lights on the not-so-bright side of things. Cheers

Sometimes that is really manipulation, but we definitely have to admit that someone is more successful in this than others. For example, this item’s price was changed, like 40 times, but there are absolutely no results.

Thanks! We believe that it might be helpful for authors to know more about what is happening on Envato Marketplaces.

Discounting does one thing and it appeals your item to a different target e.g. those who buy on price BUT they are normally the customers who need the most help which in turn will add more time on to your support which costs you more money (time = money). The main reason authors reduce their price is to get more sales so their item is “trending” and gets into the most popular list BUT not many stay there unless they keep the price low but the majority will try and increase the price once the item reaches the “holy grail”.

Authors need to look at it from a business point of view, e,g,

you get 10 sales a month currently at $59 each ($590)

You reduce to $29 but get 20 sales ($580)

You have doubled your sales, woohoo but you have lost income (before Envato’s fees).

You now have a potential 10 extra customers in the next year to support, so take away the time to support them and you are probably down $500 because of the extra work.

To make it worthwhile you would need to 2.5x your intial sales to make it viable (25 x $29 = $725) to cover the costs of the extra support.

How viable is that? probably not that easy unless you increase other forms of marketing but you could just increase your marketing spend while keeping your price the same so you are still making the same and not losing $30 per sale.

The other thing to look at is customer perception, if your item is $59 and then goes down to $29, that’s a bargain but if it suddenly goes back upto $59 then it’s a rip off. You have then potentially lost a customer as they feel they are being taken for a ride because you have doubled your price.

Find a price that you feel pays you well for the quality of your item and keep it at that price, and then market the item at that price, use marketing outside of Envato rather than relying than trying to buy extra sales based on price.

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Thanks, Gareth!
The last passage you’ve written, that was exactly what I was trying to say in the post. But I’ve chosen different way of delivering this idea(on bad examples of using ADP by authors).

@Stattie I guess you may be interested in creating an update report of Sale Effect this week.

30/56 items are on sale (some jsut adjusted their price by the way)

That’s a great idea! We’ll wait until all the prices go back to normal and then create the update report on what’s changed.