The high cost of high demand
If you are dreaming of buying the latest cell phone which you can not afford…here is what you need to think about.
The latest in the market is always expensive, cus simply everyone wants one…so if you can’t afford it what can you do?
Think of the previous release of this cell phone. the price was hot once released then after few months the price got discounted…
So all you have to do is wait a little while before you can buy this latest release.
I hear you say, I don’t get it, why can’t I get one now?!
Well, let’s have a look on the dusty book shelf here…
The development cost are naturally high in the beginning…especially when the manufacture needs to compensate for high losses generated from product guarantee and returns…
If the product is in high demand the manufacturer is in much obligation to delver as much order as he can and repay his investors…as the demand tapers off the consumer starts to have the advantage, as the manufacturer wants to keep selling he will try to attract more customers by lowering the price…
and so the price keeps going lower and lower as fewer people are demanding the product by the time.
Again, I hear you say, what if I don’t want to wait?!
Then you will have to pay for your impatience…
Take the advice, give couple of months more and watch how the price will start to lower…
And remember, price is always determined by the relationship between supply and demand, so if you wanna bargain the price, be patient and wait for the supply to increase, or the demand to decrease.
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60 Comments to “The high cost of high demand”
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Thanks for educational post!
Such a simple principle that sadly I think most people don’t understand. Just waiting a few months will end up saving people a lot of money. I generally only replace my electronics when they break, and that helps me avoid the mindset of always needing the latest and greatest. I hope more people read this post.
It is a basic demand and supply chain fundamental, but I have seen adverse results in developing countries. Production house creates scarcity of products and creates pressure on buyers to increase their demand and then they will slightly increase price band as time goes. So, if you buy early then chances for lower prize is higher then the future.
I usually will wait for a litle while for the price to drop. But I don’t really know the reason for the price to lower after a while other than the release of new models.
good!
very well!
Great post!!thanks for sharing..
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Its the most basic concept which i think everyone should follow.
You are right and people also wait for result of any new release because we will know that how it’s useful for us…
good!