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> In conclusion, you think no company should adjust their prices, ever? Obviously not. I am saying they have no incentive to change the price if the sales are
by uncle_j 7y ago
> In conclusion, you think no company should adjust their prices, ever?
Obviously not. I am saying they have no incentive to change the price if the sales are inline or above with what they would have forecasted.
> Because the current price is the market price which is obviously the right price because it's the market price?
>
> It's circular reasoning, which can be applied to any sales situation - and if it explains everything, it explains nothing.
Again you don't seem to understand basic market economics. Your product is only worth what people are willing to pay for it. There is the odd exception to the rule (Head and Shoulders Shampoo being one of them, which is priced far higher than they originally intended because people assumed it didn't work because it was cheap).
Generally if there are two or more companies producing product X (in this case Computer Workstations and Laptops) then the market will coalesce around a particular price point for a particular specification. Sure there are those that will always stick to a brand, but the vast number of consumers won't be loyal.
Whether or not the company makes a profit on each unit sold is irrelevant to its market price. If they price their product higher than their competitors people will look at the alternatives.
e.g. I bought a MacBook Pro in 2015 because Apple's machine was cheaper than Lenovo, Dell for the same spec and had a better screen than any of the competitors machines.
This really isn't complicated stuff. I think that personal bias seems to cloud people to some basic truths.