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http://www.macnn.com/articles/01/05/29/all4dvd.com.raises/

All4DVD.com raises price of DVD-R/CD-R

updated 05:40 pm EDT, Tue May 29, 2001

 
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Michael H. notes that All4DVD.com has raised its price on the FireWire version of the Pioneer DVR-AO3 DVD-R/CD-R from $1,000 to $1,100, citing market pressures. "Unfortunately, due to the high demand and low supply of this product, the market reacted with higher prices. And we therefore had to raise our prices for the DVD recorder as well."


by MacNN Staff

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    05/29, 06:00pm | report spam | Reply | delete

    Hmm...

    So the product costs the same to make, but it now costs more to buy it? Sounds like someone trying to make a buck to me. I didn't see Apple charge $4000 for the TI Powerbook when it first came out "due to high demand"

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    05/29, 06:15pm | report spam | Reply | delete

    Price Gouging

    In some circumstances, raising prices in response to high demand (e.g. raising the price of shovels pursuant to a big snowstorm) is called price gouging.

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    05/29, 06:34pm | report spam | Reply | delete

    Corrections...

    Pioneer makes the A03 drive that burns DVD-R and CD-R.

    Panasonic makes the less expensive drive that burns DVD-R, read/writes DVD-RAM, and reads CD-R/RW/ROM. About $600.

    Gas prices and RAM prices change daily, reflecting supply and demand. Why get so bent because the rare DVD-R burner price went up?

    Wait awhile, it will soon be cheaper. If enough people don't buy it, there will be excess inventory that will be dumped.

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    05/29, 07:23pm | report spam | Reply | delete

    what gets me...

    is this part of the quote: "we therefore had to raise our prices".

    it makes it sound like it's painful to make money.

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    05/29, 08:18pm | report spam | Reply | delete

    Re: what gets me...

    If their supplier of the drives to all4dvd.com increased their price by $100 then it makes sense that all4dvd.com has to increase their price by $100 also.

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    05/29, 08:39pm | report spam | Reply | delete

    Yea right...

    How tragic. PRESSURED by market forces.
    Sounds like bullsh(cough)it to me. More like Mr. Greed rears his ugly head once again. That's ok. They can keep it. I'll pick one up cheap later at the ALL4DVD.com banckruptcy sale. But now I must weep for them.

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    05/29, 09:38pm | report spam | Reply | delete

    re: Price Gouging

    Just a point of info- that only applies to items of necessity. No one is going to die if they don't get a DVD-R.

    On a lighter note, this is just normal business. It's just a bit humorous this is getting more press attention for what it is.

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    05/29, 09:40pm | report spam | Reply | delete

    re: Price Gouging

    Just a point of info- that only applies to items of necessity. No one is going to die if they don't get a DVD-R.

    On a lighter note, this is just normal business. It's just a bit humorous this is getting more press attention for what it is.

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    05/29, 09:47pm | report spam | Reply | delete

    supply and demand

    Whats wrong with making a buck, h***, if they have the demand why not offer it to the people willing to pay more to have it. If you don't like it, don't buy it, just stop whining already!

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    05/29, 10:38pm | report spam | Reply | delete

    analogy

    My personal needs as a businessman:
    Maintain a steady flow of business and limit excess job inquiries (they are time consuming to follow through on and if I cant afford the time to do the jobs it is a waste of time...and time is money).

    What is the best way to do this? "The invisible hand" as one is taught in Economics class. Price. Price determines everything. When demand is greater than supply, price will increase until demand matches supply. Similarly when there is an oversupply in the market the prices will drop to purge the excess inventory (think: Palm w/ education customers and developers right now). This is a BASIC FUNDAMENTAL tool of a market economy.

    if I charge $25/hour to do a job...I'll get hundreds of inquiries. Can I handle hundreds of jobs at once? h*** NO!

    if I charge $40/hour to do a job...I'll get dozens of inquiries. Can I handle dozens of jobs at once? Not really, but thats a managable figure, and I can line up the excess inquiries possibly for future jobs.

    Does that all make sense? Don't be pissed at what they do, they are doing what is necessitated by market conditions.

    - Jeff

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