Comments on: Why iPods Sell for $250, No Matter What http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/ Gadgets, gear and computer hardware. Thu, 21 Aug 2008 20:38:50 +0000 http://wordpress.org/?v=2.6.1 By: ishka http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-298209 ishka Thu, 28 Jun 2007 15:48:14 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-298209 ishka baba lababa looo ishka baba lababa looo

]]> By: Jon Lee http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-50119 Jon Lee Wed, 27 Dec 2006 05:50:02 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-50119 Minimum advertised price is what any manufacturer would like to have. The difference between Apple and "any manufacturer" is Apple currently has a monopoly on the market (whether for fashion or for technology), and thus can set the tone, and thus the price of it's products at whatever it likes. Obviously this is not the case for cars, as neither GM, Ford, or Toyota come close to holding the entire market, or too significant a share of it. As for whether or not minimum or maximum advertised prices are any good, there's a lot of debate. I for one am not against price floors or ceilings to a certain extent, and any (economic) scholar will agree with me on this. In this case, Apple is only exerting it's dominance over a very young market, and eventually it too will have to play by the rules of free market trade. Of course, that all depends on how soon the competitors decide to actually create a worthwhile alternative to the iPod. Minimum advertised price is what any manufacturer would like to have. The difference between Apple and “any manufacturer” is Apple currently has a monopoly on the market (whether for fashion or for technology), and thus can set the tone, and thus the price of it’s products at whatever it likes.

Obviously this is not the case for cars, as neither GM, Ford, or Toyota come close to holding the entire market, or too significant a share of it.

As for whether or not minimum or maximum advertised prices are any good, there’s a lot of debate. I for one am not against price floors or ceilings to a certain extent, and any (economic) scholar will agree with me on this. In this case, Apple is only exerting it’s dominance over a very young market, and eventually it too will have to play by the rules of free market trade.

Of course, that all depends on how soon the competitors decide to actually create a worthwhile alternative to the iPod.

]]> By: Lp http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-50042 Lp Wed, 27 Dec 2006 04:11:28 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-50042 I rather like Apple's use of MAP. Choose the method you'd like to purchase based on service and the buying experience, not on who has the best deal in town. I wish the auto industry would follow this model. Maybe they do these days and I just don't know it, because it has been years since I have made a purchase. But looking at sticker prices and wondering how much you can dicker with the agent depending on their quotas and what kind of month they've been having and whether they've been in an argument with their S/O on the way to work... its just a lame model for retail, IMO. Plus, this method is so much cleaner. Here's why. Some people will find out about a deal after they have made a purchase. So they take their purchase back to store #1 to make the purchase from store #2. That'd happen a fair amount for even 10% off of two fitty. Lp I rather like Apple’s use of MAP. Choose the method you’d like to purchase based on service and the buying experience, not on who has the best deal in town.

I wish the auto industry would follow this model. Maybe they do these days and I just don’t know it, because it has been years since I have made a purchase. But looking at sticker prices and wondering how much you can dicker with the agent depending on their quotas and what kind of month they’ve been having and whether they’ve been in an argument with their S/O on the way to work… its just a lame model for retail, IMO.

Plus, this method is so much cleaner. Here’s why. Some people will find out about a deal after they have made a purchase. So they take their purchase back to store #1 to make the purchase from store #2. That’d happen a fair amount for even 10% off of two fitty.

Lp

]]> By: Paul Thompson http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49761 Paul Thompson Tue, 26 Dec 2006 21:15:49 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49761 Apple is such a strange company. I suppose if I had taken more classes in marketing or finance, maybe I'd understand. But my B.S. in Computer Science perspective, sometimes I just really don't understand these sorts of actions. Ah well, their laptops are sexy, though.... :) Apple is such a strange company. I suppose if I had taken more classes in marketing or finance, maybe I’d understand. But my B.S. in Computer Science perspective, sometimes I just really don’t understand these sorts of actions.

Ah well, their laptops are sexy, though…. :)

]]> By: Jon http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49674 Jon Tue, 26 Dec 2006 18:29:37 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49674 Hi NW Guy, I am not talking about "second hand" but refurbished... there is a big difference, I would NEVER buy a computer or any electronic unless the price was a joke from anybody but the original manufacturer. Say what you will, but refurbished are usually covered under original warranty, the parts that where broke fixed and a thorough diagnostic. I bought my HP directly from HP (had 90 day warranty attached), same with the ipod Nano (1 year warranty). Both looked brand new and if there was something screwy on them, no big deal, they will fix it for free. This has saved me tonnes of money in the past and will continue too... I don't know why people buy things retail anyhow... usually the warranties are about the same as refurbished, you may be able to get a cheaper "extension" as well and the price is knocked down to boot! The best deal I have found so far was on a free D40... but that my friends... is another story ;-) Jon Hi NW Guy, I am not talking about “second hand” but refurbished… there is a big difference, I would NEVER buy a computer or any electronic unless the price was a joke from anybody but the original manufacturer. Say what you will, but refurbished are usually covered under original warranty, the parts that where broke fixed and a thorough diagnostic.

I bought my HP directly from HP (had 90 day warranty attached), same with the ipod Nano (1 year warranty). Both looked brand new and if there was something screwy on them, no big deal, they will fix it for free. This has saved me tonnes of money in the past and will continue too… I don’t know why people buy things retail anyhow… usually the warranties are about the same as refurbished, you may be able to get a cheaper “extension” as well and the price is knocked down to boot!

The best deal I have found so far was on a free D40… but that my friends… is another story ;-)

Jon

]]> By: NW Guy http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49657 NW Guy Tue, 26 Dec 2006 18:11:27 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49657 Thanks Jon; but second hand is always cheaper than retail; that was the foundation of eBay and Craigslist. That is like comparing previously leased cars with the MSRP. Did the desktop or ipod come with "treats" similar to the returned WalMart zune?? I wouldn't think so since you came through a refurb channel. Thanks Jon; but second hand is always cheaper than retail; that was the foundation of eBay and Craigslist. That is like comparing previously leased cars with the MSRP.

Did the desktop or ipod come with “treats” similar to the returned WalMart zune?? I wouldn’t think so since you came through a refurb channel.

]]> By: Jon http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49629 Jon Tue, 26 Dec 2006 17:36:57 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49629 Actually, this isn't totally true... I bought my mom a refurbished ipod nano for 60$ less then "retail" from the apple store no less... she loves it, I love the price and it didn't take up too much room in Santas sleigh so my guess is he is happy as well. There is always a way around these type of things... I bought my last HP desktop for 300$ off the retail price using the same "refurbished" price and have never had any problems with it neither. Same holds true with most manufacturers... you just need to dig a little deeper to find the deals. Jon Actually, this isn’t totally true… I bought my mom a refurbished ipod nano for 60$ less then “retail” from the apple store no less… she loves it, I love the price and it didn’t take up too much room in Santas sleigh so my guess is he is happy as well. There is always a way around these type of things… I bought my last HP desktop for 300$ off the retail price using the same “refurbished” price and have never had any problems with it neither. Same holds true with most manufacturers… you just need to dig a little deeper to find the deals.

Jon

]]> By: NW Guy http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49501 NW Guy Tue, 26 Dec 2006 15:25:42 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49501 The US has a law similar to the Aussie Trade Act, but obviously there are ways around it. Is it just me...or does the iPod pricing go beyond the basic gadget. Aren't all of the add-on items; covers, earbuds, etc similar in price controls? I wonder if all of the companies making peripherals are a front for Apple, or led by ex-Apple employees? The US has a law similar to the Aussie Trade Act, but obviously there are ways around it.

Is it just me…or does the iPod pricing go beyond the basic gadget. Aren’t all of the add-on items; covers, earbuds, etc similar in price controls? I wonder if all of the companies making peripherals are a front for Apple, or led by ex-Apple employees?

]]> By: Isaiah http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49265 Isaiah Tue, 26 Dec 2006 11:17:13 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49265 Stagnating consistancy, eh? I guess it prevents headaches in a way - you know that the iPod will be within a few dollars no matter where you go to pick it up, so no point in looking for a "deal". XD Stagnating consistancy, eh? I guess it prevents headaches in a way - you know that the iPod will be within a few dollars no matter where you go to pick it up, so no point in looking for a “deal”. XD

]]> By: Yellek http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49261 Yellek Tue, 26 Dec 2006 11:12:36 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49261 Thank goodness for the Australian Trade Practices Act which makes it illegal for a wholesaler to dictate the price offered to a customer by a retailer. Of course I never see discounted iPods here either... Thank goodness for the Australian Trade Practices Act which makes it illegal for a wholesaler to dictate the price offered to a customer by a retailer. Of course I never see discounted iPods here either…

]]> By: magellan http://www.crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49236 magellan Tue, 26 Dec 2006 10:42:28 +0000 http://crunchgear.com/2006/12/26/why-ipods-sell-for-250-no-matter-what/#comment-49236 Wasn't it just two years ago that the iPod Photo was $500? And the original shuffle $99? Wasn’t it just two years ago that the iPod Photo was $500? And the original shuffle $99?

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