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To: ptanner who wrote (34886)4/4/2001 5:50:49 PM
From: fyodor_Respond to of 275872
 
PT: The missing piece is likely the OEM and the likely skewing of demand towards lower cost CPUs. There may be a lot of offers in the high-end but what is the depth of demand?

That's exactly it, IMHO. I've employed the same price-model as you have (10-20% below Pricewatch) with great success. The thing to remember is that while bin splits are fairly Gaussian in distribution, the sales curve is most definitely not. The greatest demand is at the lowest speed grades. I use a shifted Gaussian, such that the maximum is at the lowest speed grade. This seems to give fairly good results, although it might actually make sense to have a relative price weighting.

-fyo



To: ptanner who wrote (34886)4/4/2001 6:01:19 PM
From: Joe NYCRead Replies (2) | Respond to of 275872
 
Patrick,

When using the lowest price, you have to take into consideration that the price is kind of fake, that is, sometimes it is a loss leader, with limit to how many you can get, and with excessive shipping charges. It represents 5+% discount to say 10th entry, which is a more realistic which includes the normal profit margin of I guess 10 to 15%.

Joe


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