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<blockquote data-quote="Randy B. Singer" data-source="post: 1893014" data-attributes="member: 190607"><p>That hasn't been my take. I think that folks get upset because they think that it sounds like retailers are taking advantage of them. For instance, I've had folks REALLY get upset at me when I've told them the true difference between wholesale and retail pricing. It's huge. People can't believe it and so they think that either I'm lying or that they are being f'ed in the a. Neither is the case. This is just how business works. (It's good to be the boss, and not an employee.)</p><p></p><p></p><p></p><p>I really don't mean to be argumentative, but I think that's a cynical conclusion. If you compare Windows PC's with similar features and quality with Macs, the pricing is not only just about identical, you might come to the conclusion that the Macintosh is a better deal. I don't have any particular Web site at my fingertips, but there are plenty of Web sites that have actually gone through the trouble of costing this out.</p><p></p><p>Interestingly, this is a similar business thing to what we have been talking about. Apple doesn't sell products "based on price". That is, they don't undercut themselves by selling low-end products. Apple only sells high-end products. By doing so they keep up the value and margin of their entire product line. Back when Apple authorized Mac clones, they really screwed themselves as all of their models were suddenly devalued, and it really cut into their bottom line.</p><p></p><p>When I worked in the car stereo store, my boss only sold one brand and one model of car alarm. It was $300, which was a lot at the time. But he sold and installed about three of them a day and we made a good profit from their sales. Our distributor wanted to have him also carry a much cheaper brand that we could have sold for only $100. The thing is, even if we sold several of them a day, if it caused us to sell even one less of the more expensive alarms a day, he would have lost money. My boss refused to carry the cheaper alarms because it didn't make sense to sell car alarms "based on price".</p><p></p><p>Windows PC manufacturers who sell based on price are killing themselves, trying to push products that are POS's that will have endless warranty claims on top of being sold for small margins. Not smart.</p><p></p><p>Note that Apple has plenty of competition for their high end Macs and their high end phones. If Apple was gouging us, their competition would offer mostly identical products at much lower prices, and Apple's sales would tank.</p><p></p><p></p><p></p><p>To be fair to Apple, they give away a lot of stuff for free, and those things are tremendously valuable and they could easily be charging for them if they wanted to. The entire Mac OS. Pages, iWork, and Numbers. A bunch of apps that are bundled with the Mac OS which they regularly update with more features. These things aren't cheap little nothings. My conclusion isn't that Apple is nickle and diming us for everything that they can to make shareholders happy. They charge for the things that similar companies charge for, and when they can they offer free things as an extra value for customers, sometimes even when other companies charge for the same things.</p><p></p><p>Of course, there are lots of Karens these days who want everything for free. But the world doesn't revolve around their wishes.</p></blockquote><p></p>
[QUOTE="Randy B. Singer, post: 1893014, member: 190607"] That hasn't been my take. I think that folks get upset because they think that it sounds like retailers are taking advantage of them. For instance, I've had folks REALLY get upset at me when I've told them the true difference between wholesale and retail pricing. It's huge. People can't believe it and so they think that either I'm lying or that they are being f'ed in the a. Neither is the case. This is just how business works. (It's good to be the boss, and not an employee.) I really don't mean to be argumentative, but I think that's a cynical conclusion. If you compare Windows PC's with similar features and quality with Macs, the pricing is not only just about identical, you might come to the conclusion that the Macintosh is a better deal. I don't have any particular Web site at my fingertips, but there are plenty of Web sites that have actually gone through the trouble of costing this out. Interestingly, this is a similar business thing to what we have been talking about. Apple doesn't sell products "based on price". That is, they don't undercut themselves by selling low-end products. Apple only sells high-end products. By doing so they keep up the value and margin of their entire product line. Back when Apple authorized Mac clones, they really screwed themselves as all of their models were suddenly devalued, and it really cut into their bottom line. When I worked in the car stereo store, my boss only sold one brand and one model of car alarm. It was $300, which was a lot at the time. But he sold and installed about three of them a day and we made a good profit from their sales. Our distributor wanted to have him also carry a much cheaper brand that we could have sold for only $100. The thing is, even if we sold several of them a day, if it caused us to sell even one less of the more expensive alarms a day, he would have lost money. My boss refused to carry the cheaper alarms because it didn't make sense to sell car alarms "based on price". Windows PC manufacturers who sell based on price are killing themselves, trying to push products that are POS's that will have endless warranty claims on top of being sold for small margins. Not smart. Note that Apple has plenty of competition for their high end Macs and their high end phones. If Apple was gouging us, their competition would offer mostly identical products at much lower prices, and Apple's sales would tank. To be fair to Apple, they give away a lot of stuff for free, and those things are tremendously valuable and they could easily be charging for them if they wanted to. The entire Mac OS. Pages, iWork, and Numbers. A bunch of apps that are bundled with the Mac OS which they regularly update with more features. These things aren't cheap little nothings. My conclusion isn't that Apple is nickle and diming us for everything that they can to make shareholders happy. They charge for the things that similar companies charge for, and when they can they offer free things as an extra value for customers, sometimes even when other companies charge for the same things. Of course, there are lots of Karens these days who want everything for free. But the world doesn't revolve around their wishes. [/QUOTE]
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