Knghifi,
I'm one step ahead of you. I'm already working smarter.
When you stated, "Market sets the price via supply and demand" this does not address the matter that was on the table which was people not wanting "to deal with" selling their audio items. I reiterate -- most people will take the better deal. If they can get a better deal by selling the item themselves they will normally do so. If they feel their chances of selling the item at a good price are slim they will opt for up-trade or The Cable Co. We are not talking about markets setting the price here, we are talking about selling options.
I don't understand this sentence of yours. What do you mean when you say, "No alternative is only obvious if Ted has some inappropriate videos of you and Bacardi".
It is a moot point that innovation brings better quality at lower prices. Again, this is not the point. The point is that when you spend $5,000 on an audio product that 2 years later requires you to spend a further $6,500 to get value out of it this is not the same as a computer that sells for $1,000 this year and 2 years later sells for $500 with twice the memory.
This is pure mathematics. With the latter you can pass your old computer to a friend or relation and you are only out of pocket another $1,000. With the former you pass your power conditioner to the company you bought it from and pay them an extra $6,500. So it's $1,500 for the computers and $11,500 for the audio products. That's an extra $10,000 for the audio products. And that's only one small part of an audio system we're talking about.
You stated, "DAC is ... basically a computer". I disagree. There is far more to a good DAC than simply converting 1's and 0's to analog. If DACs were merely computers they would all sound the same. I think it is obvious that they do not all sound the same. So it is far more than 1's and 0's we're talking about here.
You stated, "Whether a product is over priced or good value is up to the individual purchasing the product to decide and not you." If I am one of the individuals purchasing the product then it is also up to me. Companies set the price and impute value to their products. Whether the value they claim is there actually is there remains to be seen once customers evaluate those audio products in their systems.
The fact that customers are willing to pay the price is only an indication that the company is charging what they feel is the maximum that the market will bear. It is not an indication that value is there commensurate with the price customers are willing to pay. The words "over priced" and "good value" come into the picture after the fact once there has been customer evaluation.
If Joeyboynj wants to up trade it is an indication that he either was not able to get a good price for his product in the marketplace or he wanted to purchase another SR product twice as expensive and was willing to settle for 70% of the value. In this case it is a win-win situation. But in many cases it turns into a win-lose situation for the customer.
You stated, "Have you ever considered SR is NOT TARGETING for your business?" This is precisely my point. SR chooses not to offer an upgrade program. They are successful enough not to have to worry about unhappy customers. But I contend, if they were working smarter, as you suggest customers should do to be able to afford their expensive products, they could choose to make a win-lose situation into a win-win situation and thereby increase profits. Admittedly, this would probably mean a reduced profit margin in this area of their business, but it would be more than made up by goodwill and a larger retained customer base which would end up benefiting them far more, in the end. IMO.
Of course, I realize SR is not going to create an upgrade option for their customers. This is just to indicate that creating an upgrade policy is a decision that is built into a company's fundamental way of looking at how they want to serve their customers. This is done from the ground up. The decision not to offer an upgrade police is not dictated by the marketplace. It is dictated by corporate philosophy -- and business plan then follows through.
I'm one step ahead of you. I'm already working smarter.
When you stated, "Market sets the price via supply and demand" this does not address the matter that was on the table which was people not wanting "to deal with" selling their audio items. I reiterate -- most people will take the better deal. If they can get a better deal by selling the item themselves they will normally do so. If they feel their chances of selling the item at a good price are slim they will opt for up-trade or The Cable Co. We are not talking about markets setting the price here, we are talking about selling options.
I don't understand this sentence of yours. What do you mean when you say, "No alternative is only obvious if Ted has some inappropriate videos of you and Bacardi".
It is a moot point that innovation brings better quality at lower prices. Again, this is not the point. The point is that when you spend $5,000 on an audio product that 2 years later requires you to spend a further $6,500 to get value out of it this is not the same as a computer that sells for $1,000 this year and 2 years later sells for $500 with twice the memory.
This is pure mathematics. With the latter you can pass your old computer to a friend or relation and you are only out of pocket another $1,000. With the former you pass your power conditioner to the company you bought it from and pay them an extra $6,500. So it's $1,500 for the computers and $11,500 for the audio products. That's an extra $10,000 for the audio products. And that's only one small part of an audio system we're talking about.
You stated, "DAC is ... basically a computer". I disagree. There is far more to a good DAC than simply converting 1's and 0's to analog. If DACs were merely computers they would all sound the same. I think it is obvious that they do not all sound the same. So it is far more than 1's and 0's we're talking about here.
You stated, "Whether a product is over priced or good value is up to the individual purchasing the product to decide and not you." If I am one of the individuals purchasing the product then it is also up to me. Companies set the price and impute value to their products. Whether the value they claim is there actually is there remains to be seen once customers evaluate those audio products in their systems.
The fact that customers are willing to pay the price is only an indication that the company is charging what they feel is the maximum that the market will bear. It is not an indication that value is there commensurate with the price customers are willing to pay. The words "over priced" and "good value" come into the picture after the fact once there has been customer evaluation.
If Joeyboynj wants to up trade it is an indication that he either was not able to get a good price for his product in the marketplace or he wanted to purchase another SR product twice as expensive and was willing to settle for 70% of the value. In this case it is a win-win situation. But in many cases it turns into a win-lose situation for the customer.
You stated, "Have you ever considered SR is NOT TARGETING for your business?" This is precisely my point. SR chooses not to offer an upgrade program. They are successful enough not to have to worry about unhappy customers. But I contend, if they were working smarter, as you suggest customers should do to be able to afford their expensive products, they could choose to make a win-lose situation into a win-win situation and thereby increase profits. Admittedly, this would probably mean a reduced profit margin in this area of their business, but it would be more than made up by goodwill and a larger retained customer base which would end up benefiting them far more, in the end. IMO.
Of course, I realize SR is not going to create an upgrade option for their customers. This is just to indicate that creating an upgrade policy is a decision that is built into a company's fundamental way of looking at how they want to serve their customers. This is done from the ground up. The decision not to offer an upgrade police is not dictated by the marketplace. It is dictated by corporate philosophy -- and business plan then follows through.