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To: 1rudeboy
You have to admit that arguing that the product was pulled because it sold so well that it couldn't be kept in stock is a bit of a stretch.

Exactly. That means the price is below the market clearing price and they're giving away profit. They should raise the price to 219.99 and if the situation persists, raise it again to 229.99. If it gets to the point where they're making more profit per unit shelf space than from other stuff, give the PC's some of the shelf space from the other stuff.

36 posted on 03/11/2008 8:01:25 AM PDT by Still Thinking (Quis custodiet ipsos custodes?)
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To: Still Thinking
That means the price is below the market clearing price and they're giving away profit.

Actually what it means is that shelf space is expensive. A $50 MP3 player has around a 30% profit margin. You can stock 500 MP3 players in the space that one computer system takes up. A computer system has razor thin margins. It's not profitable to stock them on the shelf at your local Wally's.

Note that they still sell them on-line. Well, when they aren't sold out.

37 posted on 03/11/2008 8:17:36 AM PDT by Knitebane (Happily Microsoft free since 1999.)
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