Roblox UGC Pricing Strategies - Respect your IP!
If Roblox UGC is a part of your brand strategy, we need to talk about pricing!
Reading time: 2-3 Minutes
Roblox UGC (User-Generated Content) has become a significant aspect of the platform, allowing users to create and sell virtual items such as clothing, accessories, and other assets. Understanding the costs, prices, and how these affect both the bottom line and the conversion rates is key to pricing correctly.
Key Elements of Roblox UGC Unlimited Pricing
Developer Exchange Rates:
Roblox offers a Developer Exchange Program (DevEx), enabling creators to convert their Robux (the in-game currency) into real money. The exchange rate influences how creators price their items to ensure they receive a fair return on their work.
Upload cost and Publishing Advance:
On the 15th April 2024 Roblox changed the pricing model for UGC introducing the publishing advance which is an initial upfront cost that is refunded over time through sales with the upload cost being a sunk cost. The publishing advance pricing is item type specific. (costs differ from a T-shirt to a Hat)
The Value of your IP:
All IP has some value, but some have more than others, when pricing, one should think about the value the IP has or should have and this should be accounted for in the pricing strategy.
You can change the price of an item:
Once uploaded and on sale, one can make changes to the price of an item. Whether this means creating flash sales or updating your price points at the end of a season or activation.
How to create a Balanced Strategy for your Unlimited UGC
Create tiered pricing:
Not everything needs to be one price. Our data has shown that higher pricing can encourage purchase because the value placed on it through price translates to the consumer attributing an aspirational value to the item. As well as that, having a mix of less and more attainable items is key to allow people to buy into your brand whatever the budget.
Think like a retailer:
Just like a physical store, having a collection and bringing a curated approach to what items would add to your collection or a specific range will help what you do feel cohesive.
Test your items across avatars:
This cannot be taken likely. The value in an item is not simply in the cost to the consumer but also that it can translate to different avatars and be worn and look good on a variety of Roblox avatars without breaking. It may not work on every avatar but limiting yourself by your item only working on one avatar reduces the possibility of your item reaching profitability.
Look at your data:
It is not simply about uploading and forgetting about your items. Intelligent reporting and analysis of your sales data is key to reading trends and reacting to how the UGC you are selling is working.
Understand the impact of your pricing to your “Break Even” and profitability:
We have created a graphic looking at the variables of the pricing of an Unlimited T-Shirt on Roblox sold through the marketplace. This data analysis allows us to understand how best to price an item to achieve the best return on our outlay.
