Linked by Thom Holwerda on Sun 19th Sep 2010 20:32 UTC, submitted by sawboss
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Member since:
2007-02-17
This is very much dependent on your viewpoint.
Buisness interests will very much like to push the viewpoint that increased sales figures is better for everyone ... they will say "better profit, better returns on investment, more jobs, etc, etc". From this view derives the notion that the price should be set at "the highest price that the market is prepared to pay".
Everyone else, which is the vast majority of people, would naturally have the opposite point of view. It is better for them to lower their costs. From this view derives concepts such as "value for money".
Being a person myself who does not make or sell silicon chips, but rather one who simply uses them, let me tell you that from my point of view (which aligns with the vast majority of people who are also in the category of not being makers of chips) that the second concept, one of "value for money", makes vastly more economic sense than the concept of buying something priced at "the highest price that the market is prepared to pay".
This is especially the case where there is a tendency in a market to believe (against the actual facts) that only one supplier can deliver. For example, there is a belief in this market that only Intel can deliver on "binary compatibility", when in actual fact there are other options from totally different manufacturers who don't deliver binary compatibility at all, but who still deliver far better value for money because the customer didn't actually need binary compatibility.
Edited 2010-09-20 06:36 UTC