mjs@cmu-cs-g.ARPA (Mark Stehlik) (04/21/85)
I have been meaning to ask this one for a while now: why is it that there is a $100 difference between two seemingly identical CD players which differ only in their respective degree of programmability? A recent post about the Sony 102/302 convinced me to post this query. I would think that the 'parts' necessary to introduce even a high degree of programmability to a CD player should cost no more than $10. So why the $100 difference in the retail price. Are there other 'design' or 'performance' improvements as we move up the product line? Mark -- -- ARPA: mjs@cmu-cs-g
herbie@watdcsu.UUCP (Herb Chong [DCS]) (04/22/85)
In article <259@cmu-cs-g.ARPA> mjs@cmu-cs-g.ARPA (Mark Stehlik) writes: >I have been meaning to ask this one for a while now: why is it that there >is a $100 difference between two seemingly identical CD players which differ >only in their respective degree of programmability? > > Mark most programmable CD players of the same manufacturer close in price and features to a nonprogrammable one do have the programming hardware (digital control) inside. the buttons and other parts may cost only $10, but after adding in profit margins by the various handlers, and the real or imagined valued of programmability, $100 is about right. Herb Chong... I'm user-friendly -- I don't byte, I nybble.... UUCP: {decvax|utzoo|ihnp4|allegra|clyde}!watmath!water!watdcsu!herbie CSNET: herbie%watdcsu@waterloo.csnet ARPA: herbie%watdcsu%waterloo.csnet@csnet-relay.arpa NETNORTH, BITNET, EARN: herbie@watdcs, herbie@watdcsu
ark@alice.UUCP (Andrew Koenig) (04/22/85)
> I have been meaning to ask this one for a while now: why is it that there > is a $100 difference between two seemingly identical CD players which differ > only in their respective degree of programmability? Because that's what people are willing to pay for the feature. Suppose you're making CD players and you want to sell two models: one with programmability and one without. People will pay $500 for the one with it and $300 for the one without it. Even if the two units cost you the same to manufacture, you can't charge the same for them because otherwise no one would by the non-programmable one. You are naive if you think manufacturing costs are the only things that determine retail prices.
dca@edison.UUCP (David C. Albrecht) (04/23/85)
> I have been meaning to ask this one for a while now: why is it that there > is a $100 difference between two seemingly identical CD players which differ > only in their respective degree of programmability? A recent post about > the Sony 102/302 convinced me to post this query. I would think that the > 'parts' necessary to introduce even a high degree of programmability to a > CD player should cost no more than $10. So why the $100 difference in the > retail price. Are there other 'design' or 'performance' improvements as we > move up the product line? Because Retail vs. cost is usually a multiplier not a add on amount. Expect ~ retail = 5*cost. David Albrecht General Electric
sasaki@harvard.ARPA (Marty Sasaki) (04/24/85)
> > I have been meaning to ask this one for a while now: why is it that there > > is a $100 difference between two seemingly identical CD players which differ > > only in their respective degree of programmability? > > Because that's what people are willing to pay for the feature. A good example of this is telephones. If you compare the cost of a rotary AT&T telephone with a touch-tone telephone you will see that the touch-tone is more expensive, even though rotary phones are more expensive to make. Touch tone service is cheaper as well. You pay more because people are willing to pay more. -- ---------------- Marty Sasaki net: sasaki@harvard.{arpa,uucp} Havard University Science Center phone: 617-495-1270 One Oxford Street Cambridge, MA 02138
klein@ucbcad.UUCP (04/24/85)
> why is it that there > is a $100 difference between two seemingly identical CD players which differ > only in their respective degree of programmability? Marketing strategy. Offer a family of products, priced at the "perceived value" of the product. -- -Mike Klein ...!ucbvax!ucbmerlin:klein (UUCP) klein%ucbmerlin@berkeley (ARPA)
bobg@persci.UUCP (04/24/85)
> the Sony 102/302 convinced me to post this query. I would think that the > 'parts' necessary to introduce even a high degree of programmability to a > CD player should cost no more than $10. So why the $100 difference in the > retail price. Are there other 'design' or 'performance' improvements as we > move up the product line? It's because 90% of the people buying the product don't know that they are paying $90 for a couple more lines on the list of features. After all, that's what America is all about isn't it... MARKETING (I wish this was a :-) comment). Bob Gunderson (~uw-beaver!tikal!persci!bobg)