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msmobiles.com/f
dicussions about Microsoft Smartphone and Pocket PC phone
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msmobiles.com_robot
Joined: 23 Mar 2004
Posts: 16777215
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 Posted: Sat Mar 29, 2008 1:28 pm Post subject: Windows Mobile developers leave Handango |
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Here at msombiles.com we have been exposing Handango for many years already but now also others discover Handango's true face...
Read more at http://www.msmobiles.com/news.php/7226.html |
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standa666
Joined: 29 Mar 2008
Posts: 3
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| Posted: Sat Mar 29, 2008 6:20 pm Post subject: do you guys know what are you talking about? |
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| yes 50% seems to be high. but thats actually pretty standard. im software developer and i know that to get 50% from retail price for the developer is actually GREAT. i work in games and trust me - you rarely get more than 50%, usually something like 20% or even less. |
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kieranEire
Joined: 12 Oct 2005
Posts: 281
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| Posted: Sat Mar 29, 2008 9:15 pm Post subject: |
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The music industry is even less around 12%
What happened with this site selling software? How much have you sold? How many trade shows etc have you set up. |
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standa666
Joined: 29 Mar 2008
Posts: 3
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| Posted: Sat Mar 29, 2008 9:27 pm Post subject: |
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| im not sure what do you mean?... |
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EJR
Joined: 18 Mar 2004
Posts: 2629
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| Posted: Sun Mar 30, 2008 4:06 am Post subject: |
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| kieranEire wrote: |
What happened with this site selling software? How much have you sold? How many trade shows etc have you set up. |
oi, kieranEire, you wiseguy! you probably allude to
http://store.msmobiles.com selling software too? Well, there is
software section there too (click on "Software" in top menu there) and it offers better conditions than
Handango. When it comes to organizing trade shows then Handango has
organized zero, they were just sucking up to Microsoft on big trade
shows and the only thing they organized were meetings with some of
their developers, whom they ripped off so much that obviously they
could afford organizing such meetings. |
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auto123456
Joined: 30 Mar 2008
Posts: 2
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| Posted: Sun Mar 30, 2008 1:36 pm Post subject: |
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Basically, my opinion of the situation is:
The below clause in the handango-developer agreement prevents a developer from offering their product at a lower price in another software shop:
"At no time shall the Software's SRP provided to Publisher be higher than the Software's SRP provided to other distributors."
Thus, even if another software store charged developers only a 20% commission (as oppose to Handango's 50%), the developer can't pass that 30% savings onto consumers because this clause forbids that!
For example, if another software shop only charged a 20% fee, you would think it could work like this:
XYZ app sells for $19.95 on Handango, Handango gets 50% = $9.95 profit to developer
XYZ app sells for $12.50 on ABCshop, ABCShop gets 20% = $9.95 profit to developer
In the above example, the developer would still make the same $9.95 profit, but the consumer would save $7.50 by buying it though ABCShop!
The only way a developer could sell a product for less would be to NOT sell it through Handango (thus, they are not bound by the clause). But this would be like shooting yourself in the foot because Handango is the biggest shop and provides the highest sales count to developers. So, the developer has to bite the bullet and charge the same price in all software shops 
How can another software shop ever be competitive to Handango when the best way to do so (by offering lower prices) is specifically prohibited in Handango's agreement?
Handango has the right to charge a premium commission if their market position offers developers higher number of sales. But, I feel that this clause is anti-competitive and Handango is using their market dominance to force developers into agreeing to it.
I feel Handango is in effect dictating the prices that consumers pay for mobile software - thats probably why every shop sells the same app for the same price that Handango sells it for.
I feel the FTC and other applicable government agencies should investigate this clause to see if it is violating any anti-trust/anti-competitive laws designed specifically to prohibit monopolies from preventing competition.
Also, because Handango has so many partnerships with cellphone carriers, when a newbie buys a smartphone and selects "purchase software" link, the chances are they are directed to Handango - thus handango gets first sales opportunity for all newbies. Then, after a newbie gets confortable, they will probably try to find a software store that sells apps at a discount, but because of the above clause, there isn't any. And because all shops charge the same price for the same app, there really isn't any significant incentive for a user to switch from handango.
However, if someone opened up a new software shop that offered 20% off ALL software, EVERYDAY, then the discounted price offered to consumers for an app would NOT be the developers fault, so Handango couldn't scold them under this clause.
Such a shop would have a significant chance to compete against Handango because there would finally be a real reason for users to NOT buy from Handango! |
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kieranEire
Joined: 12 Oct 2005
Posts: 281
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| Posted: Sun Mar 30, 2008 10:40 pm Post subject: |
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| Quote: | When it comes to organizing trade shows then Handango has
organized zero, they were just sucking up to Microsoft on big trade
shows and the only thing they organized were meetings with some of
their developers, whom they ripped off so much that obviously they
could afford organizing such meetings. |
"That's when Handango Software approached us. Not only did they provide development funding and direction, but they delivered beta customers to guide product development. Soon, our software will be available through hundreds of sales reps nationwide - something we never could have accomplished so quickly on our own."
-Ben Gottlieb, President of Standalone, Inc
I think this site is clearly in competition with Handango and while claim to take less actually offer much less. If the services on this site where much better than Handango then nobody which use Handango. You see this is the thing developers whinge about handango but when you look on the site most of them are selling software there. If develoeprs don't like the terms then don't use them its that simple.
| Quote: | | But this would be like shooting yourself in the foot because Handango is the biggest shop and provides the highest sales count to developers. |
You see this is the root of the problem. Developers want Handango to provide larger sales at a price similar to a site that cannot. Sounds to me like developers want a better service at the same price as a second rate service. Does msmobiles provide anyting like "Handango Brand Launcher", can it provide a partner such as the Bank of America. Handango invested a lot of time and money building their brand thats why they provide the highest sales count and thats why they can charge more. Market forces such as selling a lot more units at lower profit than a few units at higher prices can turn a higher profit. This especially applies to the software industry. Ultimately this is what Handango gives developers and this is why all major mobile software house sell there. Larger profit.
| Quote: | | However, if someone opened up a new software shop that offered 20% off ALL software, EVERYDAY, then the discounted price offered to consumers for an app would NOT be the developers fault, so Handango couldn't scold them under this clause. |
Ok then go and do it? If you believe this is such a good idea then why are you not doing it? |
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