Here's what I mean...in true free market, there is NEVER a shortage of any good! Why? Because the price simply raises until it meets demand.
Whenever you see a shortage of a product, such as 5870, you should realize shortages occur when the price is held artificially low. Classic economics. And a good point for our health care debate I might add (you can bet when health care is free, shortages are inevitable, just like the ones in Canada and UK right now, , but I dont want this to be political so lets ignore that).
So what am I getting at? Newegg should have the 5870's priced at $480, $580, or whatever it takes to keep them not sold out, and make a nice profit for themselves. People would whine, because we're conditioned to be anti-capatalist, but there's nothing wrong with it, nobody NEEDS a video card. And this way, they wouldn't go out of stock every ten seconds. I'd argue it would be better to have $480 5870's in stock for each of us to consider buying than the situation now, where we cant get them at all.
And if newegg raised the price, well ATI is missing out on free profit, so ATI should be the ultimate one raising prices.
Sure, this would only last a few weeks, until supply caught up with demand, then theyd be back to whatever price ATI set as the best price right now. Which I personally suspect would be more like $450 all the way until Nvidia gets competition out, but then again I could be all wrong about that, and ATI may well make more by selling more volume at $380.
I'm always reminded of this whenever new video cards come out and "sell out".
I'd even ask whats the difference between this and Apple selling iPod touch that probably costs $100 to make for $230? Or Nvidia introducing the GTX280 at $600 last gen, only to be forced to slash prices rapidly when 48XX came out? All are cases of demand leading to profit.
Even take it to game consoles..every Wii that sold for $400 on ebay for like the first two years of it's life, was money Nintendo missed out on. If it's okay for thousands of people to resell Wii's on ebay for profit, why not Nintendo?
Whenever you see a shortage of a product, such as 5870, you should realize shortages occur when the price is held artificially low. Classic economics. And a good point for our health care debate I might add (you can bet when health care is free, shortages are inevitable, just like the ones in Canada and UK right now, , but I dont want this to be political so lets ignore that).
So what am I getting at? Newegg should have the 5870's priced at $480, $580, or whatever it takes to keep them not sold out, and make a nice profit for themselves. People would whine, because we're conditioned to be anti-capatalist, but there's nothing wrong with it, nobody NEEDS a video card. And this way, they wouldn't go out of stock every ten seconds. I'd argue it would be better to have $480 5870's in stock for each of us to consider buying than the situation now, where we cant get them at all.
And if newegg raised the price, well ATI is missing out on free profit, so ATI should be the ultimate one raising prices.
Sure, this would only last a few weeks, until supply caught up with demand, then theyd be back to whatever price ATI set as the best price right now. Which I personally suspect would be more like $450 all the way until Nvidia gets competition out, but then again I could be all wrong about that, and ATI may well make more by selling more volume at $380.
I'm always reminded of this whenever new video cards come out and "sell out".
I'd even ask whats the difference between this and Apple selling iPod touch that probably costs $100 to make for $230? Or Nvidia introducing the GTX280 at $600 last gen, only to be forced to slash prices rapidly when 48XX came out? All are cases of demand leading to profit.
Even take it to game consoles..every Wii that sold for $400 on ebay for like the first two years of it's life, was money Nintendo missed out on. If it's okay for thousands of people to resell Wii's on ebay for profit, why not Nintendo?
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