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It seems viable that doing so increases the price for those of us who don't.

by yzydserd 2y ago

mrtksn 2y ago
Why would that be?
- Arcuru 2y ago
  Companies tend to focus on the overall % profit margin for a product. If a higher percentage of sales are for a discounted (edu) SKU with lower margins, they will tend to raise the price of the product to hit their desired profit margin. e.g. If a company was selling a product at $1000, and wanted to offer a 20% discount for EDU that would be bought by 50% of the market, they would need to raise the price by about 10% to keep the same margin. If only 20% of the market bought the discounted SKU, they could keep the same margins with only a 5% (?) increase in price to the rest of the SKUs.
  - deleted 2y ago
    [deleted]
guhidalg 2y ago
You are free to purchase as many Apple products as you want to offset any perceived revenue losses from promotional discounts. I'm not so sure why you would want to do this but I keep hearing that behavioral economics is a thing, maybe paying more is your definition of rationality.
- yzydserd 2y ago
  It’s basic market economics. More discounted purchases tends to lead to an increase in the non discounted price. Of course, that’s baked in at outset. Apple knows x% of sales come with a edu discount so the non-edu price is offset to account for the edu discount. I don’t have any problem with a vendor doing that. It’s how they forecast a profit margin. Apple, apparently, has allowed “people who know someone in education to also claim an edu discount” to be part of their pricing model that ultimately leads to increased prices for those those do not know someone with an edu email.
dsr_ 2y ago
The typical .edu discount from Apple on largish purchases is about $100, regardless of whether that's a $600 final tag or a $2000 final tag. So, somewhere between 14% and 5%. If Apple sells 50% of Macs to the .edu discount market, that's a difference to you of somewhere between 2.5% and 7%. Or, you can accept that Apple's prices are not set by the market so much as by their marketing department.
- phillco 2y ago
  I believe build-to-order upgrades are also discounted, so it may not be a fixed discount.
coldtea 2y ago
So is paying the full price and signalling to Apple "we can afford it just fine, don't sweat about cutting margins or lowering extra disk/RAM pricing", but I don't see you complaining about that :)

It seems viable that doing so increases the price for those of us who don't.

mrtksn 2y ago

Why would that be?

Arcuru 2y ago
Companies tend to focus on the overall % profit margin for a product. If a higher percentage of sales are for a discounted (edu) SKU with lower margins, they will tend to raise the price of the product to hit their desired profit margin. e.g. If a company was selling a product at $1000, and wanted to offer a 20% discount for EDU that would be bought by 50% of the market, they would need to raise the price by about 10% to keep the same margin. If only 20% of the market bought the discounted SKU, they could keep the same margins with only a 5% (?) increase in price to the rest of the SKUs.
- deleted 2y ago
  [deleted]

guhidalg 2y ago

You are free to purchase as many Apple products as you want to offset any perceived revenue losses from promotional discounts. I'm not so sure why you would want to do this but I keep hearing that behavioral economics is a thing, maybe paying more is your definition of rationality.

yzydserd 2y ago
It’s basic market economics. More discounted purchases tends to lead to an increase in the non discounted price. Of course, that’s baked in at outset. Apple knows x% of sales come with a edu discount so the non-edu price is offset to account for the edu discount. I don’t have any problem with a vendor doing that. It’s how they forecast a profit margin. Apple, apparently, has allowed “people who know someone in education to also claim an edu discount” to be part of their pricing model that ultimately leads to increased prices for those those do not know someone with an edu email.

dsr_ 2y ago

The typical .edu discount from Apple on largish purchases is about $100, regardless of whether that's a $600 final tag or a $2000 final tag. So, somewhere between 14% and 5%. If Apple sells 50% of Macs to the .edu discount market, that's a difference to you of somewhere between 2.5% and 7%. Or, you can accept that Apple's prices are not set by the market so much as by their marketing department.

phillco 2y ago
I believe build-to-order upgrades are also discounted, so it may not be a fixed discount.

coldtea 2y ago

So is paying the full price and signalling to Apple "we can afford it just fine, don't sweat about cutting margins or lowering extra disk/RAM pricing", but I don't see you complaining about that :)