Coke and Pepsi have spent untold amounts of money on advertising and continue to be at each other's throats, both with their flagship brands and new ones (Gatorade vs Powerade). But soft drinks are a lot simpler for the consumer to think about than computers. For one, computers encompass software, hardware, and surrounding infrastructure (network connections, devices they integrate with, etc.). And those things can change independently from model to model, from year to year, from place to place. It's tough to nail down what features you can push on the consumer as THE answer to why they should pay extra, when the consumer may not understand it, may not care, or may be using your product or some of your products in a totally unexpected way. Just think of iTunes running on Windows. Is it good for Apple because it brings iTunes Store revenue, or is it bad for them because it reduces the need for some people to switch brands. Is it good for Apple because it shows Windows users how different Apple software can be or does it detract people from Apple's products for the same reason? I think the fact that Apple has to some extent infiltrated the hipster generation and made it a bit of a status symbol is quite remarkable.
Alexey 2001 Honda CBR600F4i (CCS) 1992 Kawasaki EX500 http://azinger.blogspot.com http://bsheet.sourceforge.net http://wcollage.sourceforge.net --- On Tue, 9/2/08, Joshua Marinacci <[EMAIL PROTECTED]> wrote: > From: Joshua Marinacci <[EMAIL PROTECTED]> > Subject: [The Java Posse] Re: Mac vs PC - $1075 premium for a comparable Mac > To: [email protected] > Date: Tuesday, September 2, 2008, 1:37 PM > But why is this the case? There are plenty of essentially > 'commodity' > products that have monopolistic competition and don't > eventually > collapse to 0% margin. Coke and Pepsi sell for many many > times the > price that pure costs would suggest. Automobiles are > functionally > equivalent in that any given category has the same basic > features (all > 4 door sedans will carry 4 or 5 people, all pickup trucks > will carry > furniture and dirt, etc.). And yet BMW has clearly figured > out what > things to improve in their cars that will convince someone > to spend > twice as much or more for a 4 door sedan, even though it > doesn't cost > them twice as much to produce (thus raising their profit > margin). So > what have car and sugar water makers figured out that > computer makers > haven't? Is there something intrinsic to computers that > resist product > differentiation? Clearly Apple (and to some extent Sony) > have proven > that it's not completely impossible. > > - Josh > > > > > >> > > My take on this is that most people don't care > about those certain > > ethereal features, such as "overall > experience". Maybe it makes > > sense to care about that, or maybe it doesn't, but > just like > > airlines are starting to feel a new hurt of competing > on price and > > specific features alone because of the internet and > product search > > engines like Google Products/Shopping, it's harder > and harder for > > anyone to demand a higher price without an extra > number of checkmark > > to justify it. The only other thing that people seem > to be willing > > to pay for is brand name. Besides, no one is > impressed with a fancy > > laptop anymore. Long live fancy phones! (for now) > > > > > > > > > > > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "The Java Posse" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/javaposse?hl=en -~----------~----~----~----~------~----~------~--~---
