NetNews Usenet Archive 1992 #26/NN_1992_26.iso/spool/comp/sys/ibm/pc/misc/14553

Internet Message Format | 1992-11-10 | 1.7 KB

Path: sparky!uunet!mcsun!uknet!bnr.co.uk!bnrgate!corpgate!news.utdallas.edu!convex!swarren
From: [e-mail] (Steve Warren)
Newsgroups: comp.sys.ibm.pc.misc
Subject: Re: Significant price rise on RAM?
Message-ID: <[e-mail]>
Date: 10 Nov 92 15:51:26 GMT
References: <[e-mail]> <[e-mail]>
Sender: [e-mail] (news access account)
Organization: Engineering, CONVEX Computer Corp., Richardson, Tx., USA
Lines: 19
Nntp-Posting-Host: magnum.convex.com
X-Disclaimer: This message was written by a user at CONVEX Computer
              Corp. The opinions expressed are those of the user and
              not necessarily those of CONVEX.

In article <[e-mail]> [e-mail] (Danny Low) writes:
>There are two ways to price goods, purchase cost + margin or replacement
>cost + margin. When the two costs are the same the two methods are

No, there is only one way to price goods: "How much would someone be willing
to pay me for this thing???"

If a decision is made to impose heavy duties, this creates an impression that
the item may be more difficult to obtain, causing consumers to be willing to
pay more for the item.  Retailers experiment with raising the price, looking
for how high they can go before it affects their sales volume.  As long as
people are still buying, they are going to keep raising the price.  Once they
reach the consumer's objection point they will back off on raising the price,
because they want to keep selling.
--
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