Pentium Prices
29-Dec-94 17:00:02
Sb: #180128-Pentium Prices
Fm: J Saperstein/FontBank 75300,632
To: Paul Idol 71024,3245
"Besides, if everyone, or even large numbers of people, started doing what you
did, prices would rise."
Huh? Those lower prices are usually offered because the vendors anticipate
that you will be placing a lot of orders with them. Thus, among many other
factors, the money the spend on customer acquisition is saved in your case. Any
good businessman would far prefer to have the continuing business of a single
customer rather than one-shot sales to a multitude.
CompUSA, for example, gets all of our Apple business because we get a lower
price from them than we do Apple under their Developer's Program. We also get
faster delivery and better service.
But there just ain't no way that I'm going to on the retail floor and buy for
almost twenty points more.
PC stuff and software I buy from other places because I can get better
inventory and better prices. But here again I am consistent in my purchasing.
From my own experience as a mass marketer, this is common behavior: you
continue to buy where the selection is greatest, the price lowest and the
service adequate or better.
To a retailer, that's a fair bargain and well worth the additional discounts.
Jerry