Quote:
Originally Posted by Shutterman 
So true, tassop. Given the slowdown in demand for just about everything in the economy, it seems counterintuitive that the price is going up. However, I think there's a good chance we're seeing more the effect of rather large currency exchange rate changes than anything else.
Economist/finance types like me call this the currency risk factor when projecting costs. It was probably over two years ago (or more) when the numbers were run and funding allocated before they went into production. Even the best of 'em couldn't have forseen the economic chaos we have right now.
Just speculating here, but there might also be a conscious effort on the part of management to let their higher priced units absorb more of the financial impact than their lower priced units. Elacticity of demand coeffiecents are different at each price strata. In other words, the folks buying multi thousand dollar players are less likely to react to a bigger percentage change in price than those buying on the lower end of the scale would be to a smaller percentage change.
Bottom line...seeking to gain excessive profits may not be the motivating factor here. More likely they're just like everyone else in these dire times and doing what they can to get through them. However, in times of turmoil mistakes in strategy are easily made. Changing the price on this unit to such a large degree may prove to be one of them.
On the other hand, it's entirely possible I'm all wet about all of this and don't know what the heck I'm talking about! It wouldn't be the first time.
So true, tassop. Given the slowdown in demand for just about everything in the economy, it seems counterintuitive that the price is going up. However, I think there's a good chance we're seeing more the effect of rather large currency exchange rate changes than anything else.
Economist/finance types like me call this the currency risk factor when projecting costs. It was probably over two years ago (or more) when the numbers were run and funding allocated before they went into production. Even the best of 'em couldn't have forseen the economic chaos we have right now.
Just speculating here, but there might also be a conscious effort on the part of management to let their higher priced units absorb more of the financial impact than their lower priced units. Elacticity of demand coeffiecents are different at each price strata. In other words, the folks buying multi thousand dollar players are less likely to react to a bigger percentage change in price than those buying on the lower end of the scale would be to a smaller percentage change.
Bottom line...seeking to gain excessive profits may not be the motivating factor here. More likely they're just like everyone else in these dire times and doing what they can to get through them. However, in times of turmoil mistakes in strategy are easily made. Changing the price on this unit to such a large degree may prove to be one of them.
On the other hand, it's entirely possible I'm all wet about all of this and don't know what the heck I'm talking about! It wouldn't be the first time.
I agree that their pricing strategy is a bit puzzling. But they may be conditioning us so we think we are getting a bargain when the real world prices are lower than the MSRP. I just hope they don't restrict supply to keep the prices up.
