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Conference rusure::nintendo

Title:Nintendo Game Systems
Notice:Please enter Super NES notes in Yuppy::Super_NES.
Moderator:RUSURE::EDP
Created:Tue Oct 20 1987
Last Modified:Mon Feb 03 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:847
Total number of notes:11602

191.0. "Price Gouging" by DPDMAI::DAVISGB (Gil Davis - N55591) Thu Jan 19 1989 15:15

    The other week I was in Chicago and stopped into one of those
    'war-gaming' type stores.  They had a small glass cabinet with a
    couple of Cartridges on display with prices.
    
    SMB II was $54.95
    Legend of Zelda (I) was $74.95
    
    I was asked if I was interested in anything, and I said 'not at
    those prices!', Oh? What do you mean...he asked. I said "I've seen
    both of those at Toys-R-us in Albuquerque for under $40!  Thanks
    but no thanks...
    
    Seems to me that they could sell a lot more if they sold in volume
    rather than gouging for the one-a-month sale...
    
    
T.RTitleUserPersonal
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191.1And the answer is...BALMER::MUDGETTdid you say FREE food?Sun Mar 05 1989 15:2323
    Gil,
    
    SET SOAPBOX=ON
    
    I got a BS in Economics and about the only time I've ever been able
    to use it is now.  Its called skimming when you price something
    so high that no right-thinking person will ever by it and as long
    as there is no competition thats the price it will stay at. The
    company that puts this product out is not concerned with volume
    as they are with profit and if they can get outrageous profits from
    a fairly low number of units made...well...so much the better.
    According to the economic model other companys will see the profits
    that can be made and get into the buisness which will cause competition
    and prices will be lower.
    
    Of couse thats when companys are concerned with producing things
    and not protecting themselves from LBO's.
    
    SET SOAPBOX=OFF
    
    Your friend in field service
    
    Fred Mudgett