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It's very possible they would, but the brand has been built around premium, luxury products rather than smaller margins and it's doing well for them (see the ca
by nicholassmith 14y ago
It's very possible they would, but the brand has been built around premium, luxury products rather than smaller margins and it's doing well for them (see the cash pile that Smaug guards).
- maxerickson 14y agoMy point was more that they may be charging less than the market will pay. If lower margins on the better models result in a sufficient increase in upgrade participation, they capture more of the economic surplus. It's likely that the $100 bumps are just fine, but I don't see that $50 bumps would do much to dilute their brand (especially given the total lack of visible differentiation between the models).