>overpriced What does this mean exactly? If the company is

It means that for the components and quality being offered, the price is higher than you would pay for an equally good product from another company.

>>58353610
Then why do people do so?

Clearly the product or serviced is priced accurately if so many people buy it.

Theres two sides to look at this.

From the sellers viewpoint you are correct, if a product sells well the product is apparently priced correctly (or maybe even too low).

From the buyers viewpoint overpriced usualy means the product's price is higher than the actual value of the product. This phrase is often used when companies pull shit like asking 200 dollars for 8 GB of extra ram, which might cost them 10 bucks max.

The two are linked ofcourse, if a buyer thinks something is overpriced, he will not buy it.

>>58353644
>actual value
Entirely subjective.

>>58353617

Products are priced to the highest a company thinks people will pay, not what they think it's worth. A company that markets to people who don't know much about technology will have products that are more expensive because they know their customers don't know the difference. This is what's called dishonesty.

>>58353658
It's only entirely subjective if you are consumer whore who is tech illiterate.

Someone who knows tech will value in the compenents in the product itself, because he has information the retard consumer does not have.

Ofcourse he also adds a layer of subjectivity, but it will be smaller than that of the typical consumer.

>>58353644
>>58353665
>asking 200 dollars for 8 GB of extra ram, which might cost them 10 bucks max.
But you're not paying 200$ for 8 GB of RAM.
You're paying for the specific computer model to be upgraded with 8 GB of RAM.

>>58353680
>But you're not paying 200$ for 8 GB of RAM
You are
>You're paying for the specific computer model to be upgraded with 8 GB of RAM.
Yes, exactly what I said

>>58353697
>You are
Wrong. If that were true, the seller would just give you 8 GB of lose RAM modules.
But they give you a specific laptop with 8 GB more RAM installed.

>>58353718

So you're paying for parts and labor? Is that what you're saying?

>>58353718
You are trying to justify the 190$ price difference by the install costs of a ram stick?

Have you ever installed a ram Stick?

>>58353737
>You are trying to justify the 190$ price difference by the install costs of a ram stick?
Wrong again.

It includes:
* Materials Management
* Quality Management
* Product Management
* Production Planning
* Financial Accounting
* Controlling
* Materials Management

>>58353737
>Have you ever installed a ram Stick?
Of course. Have you ever run a profitable computer manufacturer?

>>58353755
>It includes:
>* Materials Management
>* Quality Management
>* Product Management
>* Production Planning
>* Financial Accounting
>* Controlling
>* Materials Management

None of that accounts to a 190$ price difference, it doesn't even account to 10$. You sound like the typical retard consumer or a snakeoil salesman. Either way you're an idiot.

>>58353783
>What is sales mix variance?
>What is absorption of cost?
Why don't you compete with Dell or Apple?

>>58353735
>So you're paying for parts and labor?
That and much much more.
Advertising, all the aforementioned management departments, shareholder dividends, basically every in the budget of the company is a fractional part of the $200 RAM upgrade.
It's only $10 if your time is worth nothing.

>>58353804
Looks like babbie had its first economics class. You know, simply throwing around definitions without actualy explaining how they are relevant to the case at hand makes you look stupid.

>Why don't you compete with Dell or Apple?

At no point did I say a company cannot get away with pulling stuff like this. I just recognise it for what it us, a pure markup. And I'm not as dumb as you to think these costs are actualy reflected in the extra costs a company has to make to buy and install a extra ram stick.

>>58353829
You could easily compete with them tho, no?
After all, they're extremely overpriced.

Move thread to /biz/.

>>58353590
Wrong.

If the prices are right, then the company (and every other company) should be making exactly zero dollars.

>>58353839
>should be making exactly zero dollars.
>should
The entire point of a company is to maximize its profit.

>>58353755

>Stuff that every manufacturer deals with as an inherent part of the process

Yet two identical products will be different prices when the only difference is the demographic being marketed to. This isn't because one product is worth more than the other, it's because one company knows they can mark their prices up more than the other. This makes the more expensive one overpriced whether the consumer knows it or not.

>>58353824
>Advertising, all the aforementioned management departments, shareholder dividends, basically every in the budget of the company is a fractional part of the $200 RAM upgrade.

They are not going to put all those costs in a ram stick upgrade, they put it in the base product. Advertisement costs etc are all covered by the base product. Simply because if it wouldn't be and nobody would go for the laptop with the ram upgrade, they would have parts of their costs that are not covered.

That is what you fail to understand.

>>58353834
They are overpriced in the eye of someone who has knowledge of tech.

They are not overpriced in the eyes of the typical consumer who buys tech as a fashion accessory, which is the majority, and which is why companies like Apple are so succesful

And then OP, realizing that his Reddit arguments don't work here, flew off into the night to hopefully never be heard from again.