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Message

Re: Re: Pricing of upgrades

2002-02-21 by Alexis Aiosa

>> It is not a made up number...take a calculator and do it up.  

<jon wrote: Less but still inane garbage.>

>OK. Here's what I came up with. $249 + $150 = $399. Do you 
>think you can read that?

Oh hey, that makes real sense.  Wow, why didn't I think of that!  Now I see.
 Yah, right...NOT!

Real silly, boy, one day you are gonna get ripped off, and you won't know
why.  And a person like me is going to be chuckling behind your back.

So let's see, since this is the way you think...according to inflation rate
calculations.

249.00 was the price for v4 in 2000.

So therefore the price of upgrading from v4 to v5 should be the same, not
changed, but increased based on the power of current inflation, and consumer
price index and labor production.
(see the leap from v3.72 to v4.0, is not much larger than the leap from
v4.8.1 to v5.0.  That is in between each upgrade.)

Making your upgrade price, based on "your ideals" and inflation, total to
264.69.  Round up to 265.00, then add tax and shipping.

So since 265.00 is not your price.  Now you received 42% reduction in price,
even though, based on pricing and inflation you shouldn't.

265 x 42% = 153.7 then round down.  150.00

So therefore. My upgrade price is now.

265.00 + 265.00 = 530.00

Which then I should probably receive the same rate of 42% reduction on the
upgrade price. 

265.00 + 150.00 = 415.00  then round down to 399.00

Yet, since we both get a 42% reduction in price on the upgrade.  There is no
price reduction for v4 upgrade, hmmm, that is odd.  Which by today's market
value, once driven off the lot, the price goes down 50%.  But if a
dealer/manufacturer holds on to the product, each year equates about a rough
estimate of 25% (or more) reduction in price.  So therefore the price of the
v4 upgrade has devalued to the open market roughly 50 to 60 percent.

799(MSRP) x 60% reduction = 479.00 
(which roughly means that Emagic has now sold v4 for 339.00 to 399.00 to the
retailer.  Allowing for 15-30 percent markup for the retailer.)

So in fact, v4 has effectively devalued over the open market

So then you take 265.00 inflation cost of v4 upgrade, and devalue it 60%. 
Which then comes to:

265 x 60% = 105.60 then round down 99.00

99.00 x 30% markup is rounded up to 129.00

So that makes it

129.00 + 150.00 = 279.00

Or since I am late, I could take some punishment for the "crime for not
upgrading on time" and we add 15% markup to the upgrade price.  That would
make it:

129.00 + 170.00 = 299.00

So now they are making 30% on the devalued v4 upgrade and 15% on the current
v5 upgrade.  Which you in fact are not paying.  Either way, Emagic is still
making money off me...yet losing money on you.  Buy all the math
estimations, 22% of the retail price of 479.00 for v4, is in fact 105.38,
which does closely resembles the inflation cost of 265 at 60% reduction in
price, hence 105.60 then round down 99.00 then add in the 30% markup.  Yet,
in still looking at it, you are paying 22% of 699.00 (which is not MSRP) and
not 22% of 949.00 (MSRP), which would be in fact 208.78 rounded down,
199.00.  Yet if one bought the promotion over the counter, then one is
getting 399.00 - AW2 card @ 79.00 which comes to 320 - 30% markup equates
224.00.  But the new user who bought the promo, received v4 NEW, for 320.
Which now means that the new user who bought the promotion, is now paying
22% above the "So Called" current upgrade cost to me at 249.00.  Which then
means that you should be paying 22% above your current upgrade, that is to
be fair.  Which would then 183.00 round down 179.00.
  
So for me that would be:
130 + 179.00 = 309.00 round down 299.00
 
However to be more fair, you should be paying 22% of the over counter price,
which then would be 199.00 rounded down. According to you, my calculations
of your ideals, put you at cheating Emagic more than I. 

So yet that puts me at:
130 + 199.00 = 329.00

So again, your logic is flawed.  You have failed to provide any pragmatic
information to prove otherwise. You just blab on and on with no concept of
anything, except that people should pay what you paid two years ago.  That
is your only excuse.  Yet you don't realize that one day, the concept will
backfire in your face.  Your reasoning is not reasoning, but naive thinking
to what is current in the market.

Yet you're to blind to see that, because what you want is for anybody today,
to pay the same as you did two years ago.  Hey, no problem man.  If that is
how you think the world should work.  I tell you what, I will sell you my
K2000 V3, SMP-K option, Contemporary card and 32MB of Sample RAM, for
3,999.00 US right now, no tax.  And, to make it more interesting to you, I
will give you my 3x speed CD-Rom drive I have hooked up to it for absolutely
free.  If you say yes, consider it a done deal, dude.  You got it!  I will
ship it next day air at no cost to you.  Do you use Pay Pal?  Saaayyy...this
really means, that I should be able to pick up a real 1964 Stratocaster for
$300.00.  Excellent. 

Silly Rabbit...Trix is for Kids!
Peace,
Alexis

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