3 ms·
There's no proof that the product is at a particular price point just because one of the needed components is expensive. It might just be priced at what they p
by unwind 12y ago
There's no proof that the product is at a particular price point just because one of the needed components is expensive.
It might just be priced at what they perceive that the market is willing to pay, this is kind of a luxury product with very little competition, after all.
- olefoo 12y agoAlso it could be that they are going for the profit maximising price curve. $129 is worth it; if you would use the functionality a lot. And they must be selling enough units at that price to make it worthwhile for them. Without knowing their cost structure it's hard to say; if their production capacity is limited there may be no way to make enough to meet demand at a lower price. The wiki page is interesting read http://en.wikipedia.org/wiki/Profit_maximization http://en.wikipedia.org/wiki/Profit_maximization