John Turitzin, Marvel’s general counsel and EVP of the executive office
During the presentation, Turitzin gave an overview of Marvel — a “cash machine,” he called it — and the various ways it makes money, from publishing and licensing to the more recently added Marvel Studios division. Like I said on Friday, one of the more interesting portions came when a comic fan in the audience asked about recent cost increases on some of Marvel’s more popular titles from $2.99 to $3.99.
When asked if Marvel would consider lowering the cover price if revenue started to drop, Turitzin said, “Our goal is to maximize our revenue, and if we’re not maximizing revenue then our pricing is wrong, and we have to take a look at that … so you can hope we see that attrition, and our prices come down.”
“We’re always testing our pricing on our comic books to see to the extent to which it is inelastic, and we can increase our profit in that business,” Turitzin said.
“We’re just looking to maximize our profits for that business while not alienating our own fan base by making them feel that they’re gouged, which I hope you don’t feel,” he told the fan.
$3.99 The Real Reason for the Increased Price
I took those quotes from a great Comic Book Resources . com article. Click the link above to get their.
Basically it’s admitted that they are pushing the boundaries on price increases to maximize their profits. And see what they can get away with, in terms of prices, before people stop buying their books.
I know a business is their to make a profit, but their is a difference between that and gouging your buying public to milk every dollar they can get from them.
I really like that last quote saying in essence: I hope you don’t feel that we’re price gouging you, but you know what? In truth we really are.
Unlike IDW, Image and other smaller publishers, people tend to forget about the comic book advertisments in Marvel Comics. Like DC Comics, both sell a lot of advertising space that brings in revenue. All things being equal, a Marvel or a DC comic should be cheaper then a smaller publisher because of the advertising revenue Marvel and DC get to off-set their price per issue costs. But if you have noticed, that is not the case. For example Image has the same price as a Marvel or a DC book. Yet Marvel and DC have prime advertising revenue space. Whereas Image has lesser space, or at least from prominent advertising companies that pay more.
But back to the main issue, it’s glad to hear someone at least be honest and admit, all things being equal. We’re increasing prices to gouge you, and see just how much we can milk from you. As we line our CEO pockets and give ourselves bonuses, that bonus alone is more then you probably make all year.
And in today’s economic climate, it sure is great to know corporate executives have our best interests at heart.
$3.99 an issue and no doubt increasing within a few years.
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