<<Actually, Rocky, one of the more discouraging things I see at both CompUsa and Fry's is that PP Zips continue to go for $129 and ZipPlus for $199.>>
I was looking in the ad section of the Sunday paper and a thought similar to the above occured to me. However, as the Hertz commerical goes, not exactly.
What I was impressed by was the fact that after more than how many years since Zips introduction, the product still has not come down in price all that much. It's not up to IOM to dectate what price they should charge for the Zip, not after it's been out for so long. I feel that the market is pricing the Zip at the best price possible, at the equilibrium of supply and demand. Also, something to do with price elastisity which I don't feel like opening my books to provide further details.
So, in essance, my friend, I hardly find the Zip maintaing it's price a discouraging sign, in fact, I find it very positive. Especially when you consider how fast price are dropping in other products where they are a commodity to no control of the companies selling the product.
The Zip has no real competitors and therefore the market prices the product at a slight premium. Just as the hard drive makers have no control over dropping prices, so does IOM. In the end the market dectates what you should pay for a product.
A matter of supply and demand.
Zead |
