Linked by Thom Holwerda on Wed 29th Feb 2012 09:47 UTC
Hardware, Embedded Systems This morning, I experienced the nerd equivalent of a Black Friday $50 iPad sale. At 07:00 CET, the first batch of the much-anticipated Raspberry Pi went on sale, and while Raspberry Pi itself was very properly prepared, the two large international retailers actually selling the device weren't - despite warnings from Raspberry Pi about the enormous amount of traffic that would come their way, the two sites crumbled to dust within seconds. There's good news too - the cheaper model A has seen its RAM doubled at no additional cost.
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Buisness accumen
by Bill Shooter of Bul on Wed 29th Feb 2012 14:35 UTC
Bill Shooter of Bul
Member since:
2006-07-14

If you follow economics even a bit, you'd be familiar with the concept of supply and demand. The demand for them is obviously greater than the supply right now at this price point.

Either:

They're leaving a lot of money on the table right now, because they aren't good with the business side of things.

Or

By leaving the price point where they ultimately want it, they may just be using the shortage of devices and low price as a marketing strategy.

Or

They're low on operating capital and could only afford to order so many units. Raising the price to the demand level at that quantity may have pushed it above that of a reasonable alternative device.

Or

They had advertised the price well before they figured out how many and how quickly they could make them.

I'm not so sure which strategy would be best in the long term, if they had a choice. That last one seems to be the right answer, which of course I figured out after writing the others. But its still interesting to think about what they should have done, if they had a choice.

Reply Score: 1

RE: Buisness accumen
by bnolsen on Wed 29th Feb 2012 14:43 in reply to "Buisness accumen"
bnolsen Member since:
2006-01-06

Being a charity they wanted to run on principles. They promised a cheap board, that's what they delivered (or are trying to deliver). This is just a hiccup we're seeing.

Reply Parent Score: 7

RE[2]: Buisness accumen
by Bill Shooter of Bul on Wed 29th Feb 2012 15:51 in reply to "RE: Buisness accumen"
Bill Shooter of Bul Member since:
2006-07-14

Yeah, that's sort of the conclusion I came to at the end. But I thought the rest of it was interesting enough to consider if they were not set on the price.

Reply Parent Score: 2

RE: Buisness accumen
by kragil on Wed 29th Feb 2012 14:53 in reply to "Buisness accumen"
kragil Member since:
2006-01-04

So many wasted words. They are charity. They were always intending to leave money on the table.

Not everyone is Apple and wants to extract the absolute maximum from each customer by any means possible.

Reply Parent Score: 10

RE[2]: Buisness accumen
by Bill Shooter of Bul on Wed 29th Feb 2012 15:53 in reply to "RE: Buisness accumen"
Bill Shooter of Bul Member since:
2006-07-14

Yes, but the money they spent for six years developing the prototype has to be recouped somehow & eventually they do want to build another version.

If you've ever worked for a charity, you'd know how much you can do with a little and how much more you could do with more.

Reply Parent Score: 2