The law of supply and demand works very well for commodity goods;
food, clothing, PC's and such. There are some items where demand is
very insensitive to price. Addictive products (tobacco, alcohol,
heroin) have a demand curve insensitive to price. Products where
there are things at risk which are more important than money (health
care) will be insensitive to price.
The term Zuikoholic has been mentioned on this list. I buy Olympus
equipment not for better pictures, but for the 'thrill' of owning
exceptionally well made equipment that gives me many hours of time
away from the mundane worries of life.
Olympus has a small but dedicated group of customers for it's SLR
equipment. I suspect that raising prices will cost Olympus only a few
customers and the increased returns on the others will more than make
up for the loss. If this keeps Olympus producing SLR's longer BRAVO.
> Yeah, I'm familiar with this BUT... It is unlikely (for example)
> that OMs are made on the same line as Styluses. Carl's point is
> valid. Is it better to REDUCE the price of OMs so that Olympus can
> make bigger batches, or is it better to INCREASE the price which
> will result in SMALLER batches?
>
> As you suggest, SMALLER batches = higher cost per unit. LOWER
> selling prices per unit = higher sales and lower cost per unit.
>
> This has been borne out thru the history of industrial production,
> from Model Ts thru VCRs.
>
>
> Regards,
> Denton Taylor
William Biesele
http://www.wolsi.com/~wbiesele/
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