*>> But another way to look at the question is, "Is the price I am paying reasonable based on what it costs to produce the thing I am paying for?"*
As I like to remind people who bring that up when I'm consulting for them, "The real important question is not what it costs me (ASB) to perform this function, but what it would cost *you* to perform it without me. That is took *me* 15 min to fix the problem is only a small part of your cost." Likewise, as I am quite incapable of producing CPUs, I view the costs in terms of what I am willing to spend + what my market options are, and not what I would do myself. *>>** High price/cost ratios tend to yield unstable long-term economic relationships, unless prestige is part of the product.* True, but I see Intel's response as a way around that problem. They're offering better feature/price ratios using this approach than the traditional one. I'll bet that over a 2-5 year period, this approach results in better pricing for consumers than having to produce completely different silicon to get the same initial results. Frankly, I think that the hardware side of the house has suffered with low margins as compared to what we let the software side of the house get away with. *>>** I think you're arguing a narrower scope of issues than some other people are.* Yes, I am -- for reasons stated previously. *ASB *(My XeeSM Profile) <http://XeeSM.com/AndrewBaker> *Exploiting Technology for Business Advantage...* * * On Tue, Sep 21, 2010 at 5:25 PM, Ben Scott <[email protected]> wrote: > On Tue, Sep 21, 2010 at 5:14 PM, Andrew S. Baker <[email protected]> > wrote: > > It's still not a direct consideration for the "am I getting the right > value > > from the equipment I purchased vs what I paid" question. > > Well, there's at least two ways to look at that. One is ROI, i.e., > am I making enough back to justify what I'm paying. But another way > to look at the question is, "Is the price I am paying reasonable based > on what it costs to produce the thing I am paying for?" > > High price/cost ratios tend to yield unstable long-term economic > relationships, unless prestige is part of the product. > > > It can be a consideration for other reasons, but not for the one which > > comprises our main discussion point. > > I suspect part of the evident confusion in this discussion is > disagreement on what "our main discussion point" is. I think you're > arguing a narrower scope of issues than some other people are. > > -- Ben > > ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ --- To manage subscriptions click here: http://lyris.sunbelt-software.com/read/my_forums/ or send an email to [email protected] with the body: unsubscribe ntsysadmin
