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> I’m not interested in selling a $1.99 product to a guy with a $199 device. I’m interested in selling a $199 product to a guy with a $3999 device.

I love the way you're thinking (and presenting it)

> That’s the guy I’m going to listen to.

You and me both!

Saving a few dollars on RAM is penny wise, pound foolish.



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>> the best of which is a device that barely does X for $200.

OK, after we did the bid, and that's the result, why can't i just go buy something if it's less than half the price ? even if i buy it from my buddy, as long as it fits ?


> An advantage to buying better hardware in the first place: it will still be worth enough for someone else to buy it from me.

Yep, a great source of inspiration for this line of thinking: https://forum.thinkpads.com/


> Except for a handful of very over-priced models that I can't afford to buy.

This statement here made me pause for a bit. He wants a computer with specific features, but doesn't want pay for the models that offer those features because they are too expensive?

Everyone wants to have their cake and eat it too, but unfortunately, reality has constraints.


>So if I asked to buy your laptop directly out of your hands right now, how much would you demand? $3000? $10,000? $50,000?

i would tell you to get lost.


> Due to a slight problem of undercapitali7ation[sic], I found this incredibly low price still a bit high.

Alas, a situation I am only too familiar with, even though computers and peripherals are so much cheaper these days. Also I love the way he phrased that.


>Third, if you're paying $60 for a laptop, just pay for it yourself. Getting people to chip in for a 10 year old, $60 brick just looks really cheap. It's not much of a sacrifice, guy.

This really, really depends on how much you make. Maybe it wouldn't be a problem for us, but I know many people who can't afford to drop $60 on something like that out of the blue.


> I recently bought a 4K HDR smart TV for $199

I find it hard to believe that the manufacturer sold it for less than that. Maybe they had to get rid of that unit, but selling that far below cost cannot be profitable.


>But you can also pay $400 for a number of acceptable alternatives

Can you show me just one of those, please?

I would buy it today.


> Has anyone ever seriously reconsidered buying a product when you tell them it's $500 instead of $499?

The effect seems to be because people subconsciously see the price as $5xx and $4xx. So I would guess yes.


>This device is not at my price point, therefore those that buy it are spending their money recklessly

It is possible that others have more money than you do.


> I dont want to spend $10

Pennywise dollar dumb. You're making a $800+ device worse to save $10.


> are there people that don't think gross margins matter?

I hope not. If you sell it for less than it costs you to make it, eventually you're gonna have a bad time.


> Why are so many people upset by this?

They feel uncomfortable that the person above can shell that money on stuff that is slightly more than what they can afford. They then need to rationalise their decision that they made the best choice.

If I make $50 an hour, I am not going to waste 8+ hours searching and doing spreadsheets to figure out 'what is the best for the money' because I am already losing 50$ per hour. The new pair that is 'cheaper' costs as much as the device itself + as much as I 'paid' searching for it.

If it isn't my hobby, there is no reason to waste time on it.


>Now if I over you something that's worth $5, or alternatively something that's worth $10 but that for a short you can purchase for just $5, which item do you choose?

I have no reason to assume that simply because you tell me something may have sold for $10 in the past, that it has any bearing on the relative utility per dollar of that item in the present.

I only look at the price I would be able to buy at, and search a few other retailers on my phone, and determine if it is an acceptable price.

People prefer discounted items because of ego. They like to feel like THEY got a deal.


>Given all these bankruptcies, I’m beginning to think that even back in 2001, this product was underpriced. $3.99 was simply too low to charge for a product which would go on to serve me well and faithfully for 20+ years and counting. In life, you have to know your value, and charge accordingly.

He's mixing up use value and exchange value.


> Most vintage computers sell for less than they were new. That is before accounting for inflation.

If you base it on original MSRP, I have well north of a million dollars in older and/or vintage hardware, not accounting for inflation. Resell value today? Maybe a couple grand, if I really tried hard enough.


> let alone $3500. They might as well have made it $9999

I’ll buy it at $3,500, but not at $9,999


> No - but as a price-sensitive customer I would buy a couple-months-old, gently-used Macbook and save $200 or more. As a price-sensitive business I would buy a Dell.

Given the number of successful 1-2% cash-back credit cards, it would seem that even regular consumers care about saving tiny fractions on their spending.


> How do you deal with the rest of the consumer universe? I'm betting you get along just fine.

Yes, because I couldn't care less. I do care about my laptop, though. If anything because it's 1,500 or more.

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