alt Hacker NewsYou really think the manufacturers or retailers will lower the prices now that people are used to the new normal? How often do you see that happen?
Replies
NBJack • yesterday at 6:29 PM
SSD prices in 2018. GPU prices after the first crypto crash in 2018 and again after the Ethereum merge in 2022. The AMD Zen disruption of 2017.
Retailers are mostly free to offer things at whatever prices they want. But the market has more power than you may think to correct it.
timpera • yesterday at 6:21 PM
It happens all the time. For a recent example, see Windows midrange laptop pricing since the MacBook Neo was introduced, despite the RAM crisis.
choilive • yesterday at 6:22 PM
Yes. Absolutely. They will move more units and make more profit overall, and if they don't do it a competitor will.
Yes, I really do think that.
Suppose you have a warehouse full of widgets. You bought them them for $450 each, and sell them for $500. You're really happy with this profit, and you can just keep selling them at $500...forever, right?
But then, I get my own warehouse and fill it with widgets that I bought at $400 each because I entered under better market conditions. And I really want to sell these widgets -- they aren't making me any money when they just sit there taking up space and burning rent.
So I price these widgets at $475, to attract customers. It works; the widgets are flying off the shelves. And they're being purchased by people who used to be your customers, and I'm making even more money per-unit than you are.
What's your next move? Do you want to keep losing customers to me, or do you want to adjust your price to be more competitive?