Re: What is $81,405?

If you don't think that these sites are making more profits than they know
what to do with, you are kidding yourself. I would love to hear estimates
from others of how much they think PS (or Party) takes in each week in
rake. My very rough estimate for Pokerstars is somewhere between $2M and
$10M per day!

I don't begrudge them making a profit -- but I would argue that there
cannot be any signficant marginal cost for each additional player entering
the tournament. If they charged $2 juice, they would still make a lot of
money -- $5 juice for an online tourney is more than fair and would give
PS a very nice profit.

Don't get me wrong, PokerStars is my favorite online site and I have never
had a major problem with them... but if players could band together
(highly unlikely), pressure could be put on PS (and others) to make their
rakes more reasonable and keep more money in players pockets.


On Mar 20 2006 1:54 AM, FredMaxwell wrote:

Servers and security and employees and
Insurance and everything else

Is not inexpensive


Software/programmers doesn't/don't randomly create/(pay) itelf/themselves.

You've got no idea of what it takes to run a business like
Pokerstars

On Mar 20 2006 12:22 AM, Nick Wool wrote:




On Mar 20 2006 6:07 AM, Minor Glitch wrote:

On Mar 20 2006 12:25 AM, Nick Wool wrote:

On Mar 20 2006 5:08 AM, Minor Glitch wrote:

That is the amount that PokerStars made just on tonight's $200+15
tournament. With no dealers to pay and limited oversight necessary,
does
anyone else find that just a bit excessive?



Ever heard of market forces?  Prices will always be charged at the
highest
amount that the customers are willing to pay.  If there are cheaper,
viable
alternatives, I am sure you won't be complaining about the juice at
stars,
but
playing at this cheaper new site.

So how about it, all you budding tycoons, instead of moaning about the
high
rakes these major sites charge, why not set up a viable site that takes
less
rake?


At this point, market forces have very little to do with this. People
will not move to a new site because the players are not there -- read the
statement below -- you have come with a simple, easy to understand but
ultimately and entirely wrong answer.

-mg

Lesson from the Bush White House:
Complex Problems have simple, easy to understand, wrong answers.

Can you read?  Do you know what 'viable' means?  Do you know what 'market
force'
is?

If people won't move to a cheaper new site, surely that implies the
majority
of
them are happy to pay higher charges for the privillage of playing at a
well
known, 'respectable' site.  That, my dear fellow, is what 'market force'
is. 
The customer is king in the market place, and market forces ae mainly
customer
prefernces.

If you mean there is a lack of choice, ie., all the sites charge the same
rate,
it merely means that price is not on top of the customers agenda at
present. 
If
it were, I am sure some budding tycoon somewhere would have made millions
by
now, by providing a cheaper service, to which the customers would flock.


-mg

Lesson from the Bush White House:
Complex Problems have simple, easy to understand, wrong answers.

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Relevant Pages

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