RE: Authority of the marketplace?

[Baardwijk, J. van DTO/SLBD/BGM/SVM/SGM]

> -----Oorspronkelijk bericht-----
> Van: John D. Giorgis [mailto:[EMAIL PROTECTED]]
> Verzonden: Thursday, July 19, 2001 3:40 AM
> Aan: [EMAIL PROTECTED]
> Onderwerp: RE: Authority of the marketplace?

> >I didn't notice any prices going down. I notice that the industry is
> >quick to raise prices when costs go up, but doesn't make much haste to
> >lower prices when costs go down.   :-(
> 
> Uhhh...... I'm just guessing that you are writing this message on a
> computer, presumably one that you noticed the price of when you bought
> it.  Notice anything about its price today?   Or its price five years
> ago?
> Hmmmmmmmmmmmmmmmm?

Yep. My first PC cost me NLG 5,000 (Jan. 1993). My second PC cost me NLG
4,500 (Sep. 1996). My laptop cost me NLG 5,300 (Dec. 2000).

Not much of a drop in price, is it? Hmmmmmmmmmmmmmmmm?

 
> >I think it has something to do with that cornerstone of capitalism:
> >GREED. Why pass on lower costs to your customers, when you can keep 
> >that money yourself?
> 
> Because if you charge $10 for something that only costs $5 to make,
> sooner or later, someone will come along and start selling it for $7.

And what do you do till that someone will come along? Sell your product for
$10, or lower the price to $7 because sometime in the future someone might
come along who will also sell it for $7?


Jeroen

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