Isn't that the point of massdrop? Buy more in quantity so the price can be lowered.
This argument requires an equilibrium between two things: an expected sale normally, and the size of the drop. For a company to earn a profit on MD, it would have to mean that the amount they stand to gain via the drop price would have to be greater than if they'd simply sold them outright.
Now there is a HUGE problem with what I'm about to do, because the price on the PX doesn't change no matter how many it sells, but let's just do some numbers anyway.
To put some numbers on it (and really simplify things), the P1 costs $200 and the drop goes for $114. Let's completely ignore things like MD's cut or Amazon's percentage and just use the numbers as is.
At 200 sold, that's $22,800 made. To make that much at $200, they'd have to sell 114 of them. But that doesn't take profit into account.
Let's say that they cost $100 per unit on average (much more than that and they're losing money per unit on MD), that means that selling the 200 on MD gives them $2,800 profit, but selling 114 of them at $200 means $11,400 profit.
Uh oh, so the numbers really need to change. Let's see...
Cranking it up to 1000 sold, that's $114,000 raw, with a profit of $11,400. Meaning that they'll have to sell
a thousand of the things in this drop to make the kind of money that they'd make from selling barely over
one-tenth that at the normal price.
However, this crap only works if we take it as assumed fact that it costs them the exact same, and that they're the exact same product.
Bulk production and guaranteed sales make a difference in big industries, but when we're talking a couple hundred, those margins aren't going in wildly different directions. Certainly not enough to make up for
that kind of price discrepancy.
No, the end result to me is that the MD versions are simply cheaper products, made with the help of the original company, offered at a lower price because they're a discount version for people who would like the original but can't afford it.