the demand for above 20,000 components is inelastic. that is it may be wiser to increase the price and sell a little less, when introducing new products.
how many compoanies have annual revenue in excess of one million dollars. if you can sell more than 4 components costing 250,000 each, provided there is sufficient eposure, reviews, hype etc., it may be a wise marketing philosophy.
high end audio represents conspicuous consumption. whether one is a music lover or not or ever turns on a stereo, top ceos of fortune 500 companies may pay over 100,00 dollars for a stereo to impress other ceos or as a status symbol to demonstrate their wealth.
in these "times", raising the price of already expensive components , even at the expense of selling less to a few consumers may be wise.
other companies may emulate such a paradigm and go into business selling expesnive components. thus in the context of companies entering the market, some will use one model--price while others will use another, namely , quantity.
depending upon the econmomic model you will either see high or moderately priced products.
if it seeems that that year -over-year, prices are going up, it may mean more companies are adopting one strategy or another.
how many compoanies have annual revenue in excess of one million dollars. if you can sell more than 4 components costing 250,000 each, provided there is sufficient eposure, reviews, hype etc., it may be a wise marketing philosophy.
high end audio represents conspicuous consumption. whether one is a music lover or not or ever turns on a stereo, top ceos of fortune 500 companies may pay over 100,00 dollars for a stereo to impress other ceos or as a status symbol to demonstrate their wealth.
in these "times", raising the price of already expensive components , even at the expense of selling less to a few consumers may be wise.
other companies may emulate such a paradigm and go into business selling expesnive components. thus in the context of companies entering the market, some will use one model--price while others will use another, namely , quantity.
depending upon the econmomic model you will either see high or moderately priced products.
if it seeems that that year -over-year, prices are going up, it may mean more companies are adopting one strategy or another.