Price Discrimination Lowers Overall Prices; But Still Pisses People Off
from the is-it-worth-it dept
Why does it cost $100 more to order a black laptop from Apple than a white one, even though they cost the company the same amount to make? Yes, the black one may look cooler; that's part of it, but there's more. Such a pricing mechanism actually allows Apple to distribute the cost of new product development in a more fair manner. Instead of thinking about the black laptop as costing $100 more, think of the whites ones as being sold at a discount. This expands Apple's market, reduces the per unit cost of production, and brings in revenue to fund future R&D. But as economist Robert Frank explains in today's New York Times, price discrimination can actually help to lower the prices for everyone -- even those who pay the top dollar prices. If Apple focused exclusively on offering a premium product, it would not be able to achieve the same economies of scale, and thus the cost of that product would be a lot higher. Though there seem to be obvious benefits from price discrimination for everyone in the market, the practice really prompts anger among people who see companies as cheating their customers. Furthermore, there are benefits to uniform pricing, which Steve Jobs himself understands. Even while it may seem most economically efficient to discriminate here, that ignores the economic friction of pissed off customers, who represent a real, if hidden, cost.
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Re:
I wait a year to buy mass market paperbacks, and you mental infants can wait a few months until the black one's price comes down to where the white one's was back when this all started.
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Re: Price discrimination
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I have to...
The bottom line is that consumers pay what they want to pay. If they're smart they do therir homework, they may get a better deal. If they're like me (impulse buyer), they get screwed.
If Apple wants to sell blackies for more than whities, so be it. If you don't like it, don't buy it.
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They call this a discount, or just pointing out that black is an expensive color?
You tell me.......
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Re:
I mean really, people that get mad at companies over how products are priced need to sit down, shut up, grow up, and get a life. Companies are in business to make money. Period. If you don't like the product or the price, then don't buy it. Simple.
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Trying to justify getting ripped off
Instead, charge $50 extra for each color to make the them cost the same.
I can agree that if Apple sold only the black model, and then charged $200 more for pure profit because they knew they had a popular model, I wouldn't complain because people will buy it regardless, but Apple makes it so obvious that price discrimination is apparent. I am surprised the black iPods are not more expensive then the white ones.
Of course, they can get away with it because it just proves that many Apple users are just dumb schmucks with more money then brains and its all about style over substance. They probably are also the same people that will wait 6 months for that "special limited edition color" of a backordered VW Jetta rather then getting one in a different color that is already on the lot. Better yet, get a car without the ego.
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Re: Trying to justify getting ripped off
But anyway--why SHOULD they cost the same? Just because it has "discrimination" in the name, does not mean a practice is bad, illegal, immoral, or unethical. I don't think they should cost the same. I would gladly pay less (as I see it) for a tiny white thing that more resembles a tampon than a piece of sophisticated electronics. I'd pay less again if you put advertising on it. I'd pay less again if it had a black and white screen since color means nothing to me. (frankly, i'd pay MORE for a black and white device, since that means it would have to be designed around it and thus have a superior interface to the one the same designers and engineers would produce if it were color)
Different people care about different things. Who are you to slander the tastes of people that decide based on color? Who are you to slander the tastes of people in any case? Go to hell.
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Re: Re: Trying to justify getting ripped off
Price discrimination is just about the only discrimination that we haven't made illegal (although the others do tend to be all of those bad characteristics you spoke of).
Don't get me started on the whole discrimination thing though...
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Price Discrimination
So, if you wanna look cool, and own a black one, pay the price for being vain and 'Live with it!'.
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¡Hispanics unite!
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I WANT A TRANSPARENT PURPLE ONE!!!
I also want it to taste like grape.
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Explanation - Re: I WANT A TRANSPARENT PURPLE ONE!
When I'm sitting in a Starbucks surfing the web, and a hot chick walks into the place, when we make eye contact I can pick up my laptop, lick it, and say "Wanna try it? It's grape flavored."
No, I don't recommend this as a pickup technique but I just think it would be funny as achee-double-hockeysticks to do just once.
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Legal Notice - Re: I WANT A TRANSPARENT PURPLE ONE
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rofl
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Noob complaint
The color makes a difference in stove or refrigerator pricing, why not electronics?
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Re:
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You sell some of your aspartame in "Equal" packets for $5, and some of it in "Nutrasweet" packets for $2.50, and you hope shoppers don't notice both boxes list the same 1-800 number. Or, you sell a movie ticket for$8, but a movie + 10 cents worth of popcorn for $20. Or, you offer a "rebate" and count on most people being too lazy or incompetent to follow the instructions.
THAT's price discrimination the way God intended it. You don't sell the color #1 widget for $100 more than the identical and identically-banded color #2 widget . You're just going to piss people off doing that, no surprises here.
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Once you go
Why would they make a keyboard/trackpad white in the first place?!
Because white has been Apple's BRAND image for a long time now. They introduce black in earlier products, see the popularity of it, and decide to expand the brand image, ergo black lappy.
And its about time- I hate white, but love Apple. Now I can sleep in peace.
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Yes, it is potentially sly, underhanded, and backstabbing, but in the end it is just one more product.
Oh, also the Black Laptop has a slightly larger HD standard, you you end up paying something like 80 dollars for color and 10 or 20 gigs... Still arguably not worth it, but oh well, it is still cool enough that for me, it is worth the 80 bucks.
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Why have two different prices?
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Once you go black...
Personally, the better color scheme is worth the extra Za.
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Here it comes!
Special offer -- white people only! Join the line before it reaches 23rd street and get a free game pack including Capitalist Swine Hunter 3D!!!!!!!!!
.. I swear to god, capitalism can't work just because in the long run ignorance utterly crushes intelligence, leading invariably to socialism, lack of pesonal responsibility. I still love it though, even if its doomed. :P
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Screw capitalism
How about this I say it costs you this much and your say yes or no on the purchase. We make/ dont make a deal and walk away.
Stop complaining about how everyone else should be doing things and spend more time focusing on yourself people.
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