Re:HD 555 to HD 595 mod (or: how Sennheiser cripples cheaper...
by wiredfool on Sunday February 13, 2011 @10:24PM
(#2215101)
Re: Coke... They dong come anywhere near charging 2x as much for a 2x larger size.
I remember one day going into the convienience store near my office and finding that all the coke prices were identical, 1.69 iirc. The small bottle, the widemouth litreish one, the two litre, all the same price.
Re:HD 555 to HD 595 mod (or: how Sennheiser cripples cheaper...
by akashs on Monday February 14, 2011 @02:01AM
(#2215725)
1) they do at movie theaters, restaurants, a lot of places. a 12 pack costs more than a 6 pack. etc, etc.
2) you still get the point. it's then even more clear that it has nothing to do with the underlying cost.
Pricing based on cost is irrelevant because that has nothing to do with the value created or what people are willing to pay. E.g., why did Sony and MS sell the PS3 and 360 below cost for so long? Well, no one would have paid the $1000 plus margin that Sony would have needed.
On the other end, do you really think that bottle of Coke you buy is priced anywhere based on the cost of manufacturing? The ingredients in that cost about $0.02, but they charge $1 at the store. The 20oz bottle has maybe an extra couple cents of cost, but they charge twice as much.
To your point, Ask could have 5% share of volume, but if their ad platform was better to the point that they could charge 10x what Google could, they would be doing pretty well.