Saturday, 5 July 2008

Latest pricing strategies... or is it?

One fine day while I aimlessly wander thru the aisles of giant hypermarket at IMM I had this sudden urge to go see what kinds of malaysian made tech products would be sold it (since giant being malaysia boleh! and all). A quick browse and my eyes landed upon m2 memory sticks, with my mind linking my current phone memory capacity of 64mb ( I know!!!) I thought if the price was right I would go upgrade my mem stick, however three reasons compelled me to be satisfied with 7 songs in my phone and 10 pictures.
1) Money is the root of all evil, sadly I do not own the roots.
2) iPhone impending...bye bye sony ericsson
3) Notice the picture above, prices for a 2gb stick "as advertised" price is $51.90 so i said to myself my god has prices dropped rapidly, then curiosity got the better of me as my glare drifted off to the neighboring product the 4gb version of the same thing, guess what non advertised price and it is $49.90!!! haha either my eyes are spoilt, camera lens spoil or the glass panel between me and the product has fact distortion properties.

So my point is...can anybody explain this new pricing strategy of lower prices for higher capacity? Is 4gb two times heavier, two times slower, two times more energy consuming that causes the company to compensate by a $2 mark down of the price?

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