E.g. I just bought a game 85% off on Steam (for a discounted series and I own all the previous titles). Assuming the publisher makes no profit from this sale, how do they make future revenue from me?
In: Economics
So digital goods and physical goods have differences.
In the steam case digital goods, publishers make 2/3 of the money off steam. They ideally start by selling at full price to everyone who is going to buy it at that price point. Usually at this point if it’s reasonably successful they made a profit already. Everything else is gravy. They usually slowly drop the price of the game to have the customers what are willing to purchase at the price point buy more to make more profits. Butt even if they discount a 60 dollar game to 20 bucks it’s still profit most of the time.
For physical goods, sometimes the manufacturer fills in the gap in price of a product with rebates, so they just make money. When a store is trying to get ride of a product on there own they effectively are choosing to potentially loss money, but gain shelf space to sell other stuff they can make money on. If I can take a 10 dollar loss and put a product I can make 100 dollars on it makes sense. This is considered opportunity cost.
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