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Why Goods Are Losing Theyr Price With Time?
05-03-2007, 08:07 PM,
#1
Why Goods Are Losing Theyr Price With Time?
For example you buy pc today, in one-two years you come in the shop and it costs about half price you bought it for, its same with every single peace of goods you can buy for money, why this happens what makes the price drop, what makes it drop faster?
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05-03-2007, 09:47 PM,
#2
Why Goods Are Losing Theyr Price With Time?
Less demand since there are newer products that people would rather buy. This is especially true for PC's since the technology is advancing so fast.

And no it doesn't happen with every single piece of goods you can buy. Last I checked the price of milk and bread hasn't dropped in half ever two years. The price of socks hasn't changed much if at all.

No offense, but that's a pretty stupid question...
The belief in 'coincidence' is the prevalent superstition of the Age of Science.

&I don't understand why you're taking such a belligerant tone when you're obviously the ignorant one here. &
-triplesix
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05-03-2007, 11:59 PM,
#3
Why Goods Are Losing Theyr Price With Time?
Its not really a stupid question and its not really the drop in demand either. For most goods you can buy in our world, you dont really pay a prices which equals the "worth" of the good. I mean you dont really pay what the material and the time to produce the good costs. You pay 95% profit first and that is which drops after a while. For some food like bread and stuff you more or less pay the real value of the good and thats why it doesnt drop that much or even increase its prices after time, cause the wages go up and maybe there was less corn havested in the year and stuff like that.

But for a tv, a computer or a car you pay the profits and not the material and producing costs first. I know the "real" costs of a few products (meaning the costs of material, the costs to pay the workers and to pay all kind of taxes) for a example bottle of hair shampoo its a about 40-50 cent and the bottle will be sold for a bout 2-3 dollar in a shop. For 40-50 cent everything of that bottle is already paid and there is already a tiny profit included. Meaing you could produce a ordinary bottle of shampoo for just 40-50 cent and the company could pay its employees and pay all the costs and buy new machines and still would make a tiny profit out of it. Another example. A friend of mine works in stuttgart at porsche. Lets take an porsche 911 as an example which would costs you about (I dont really know the us prices of a porsche so let me use the euro-price for it). The porsche will costs you roughly 90.000 euro when you buy it. The "real" price is roughly 20.000 - 25.000 euro and thats what a porsche costs to create (etc. material costs, workers costs, and stuff and there is also a tiny profit included). So the other 70.000 euro you pay for your brand new porsche? Profits!

Btw. these are real numbers! and I bet with a computer its about the same. A brand new intel computer would roughly costs 10-20% of what you would have to pay in a store and that more or less also the reason why the goods "lose" that much value in a year or 2. Well they dont really lose value, the material prices are going up, its just that you can buy the goods for more or less the "real" costs after a while.
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05-04-2007, 04:45 PM,
#4
Why Goods Are Losing Theyr Price With Time?
Quote:And no it doesn't happen with every single piece of goods you can buy. Last I checked the price of milk and bread hasn't dropped in half ever two years. The price of socks hasn't changed much if at all.
I was talking about products that cant expire with time like food, and cost more than 50$, meaning they will require serious investments and next year or two you find out it cost like half.

Quote:Btw. these are real numbers! and I bet with a computer its about the same. A brand new intel computer would roughly costs 10-20% of what you would have to pay in a store and that more or less also the reason why the goods "lose" that much value in a year or 2. Well they dont really lose value, the material prices are going up, its just that you can buy the goods for more or less the "real" costs after a while.
Thanks this looks like it.

Can we look into this in global terms, there is such thing you buy e.g. top of the line mobile phone for (just numbers out of the sky i don't claim this related to real life) like 1000$ and next year its price drops to 75% and new model will take its price plank of 1000$, and when next new model comes out it will cost 1000$ previous one will be 75% and first one will be 50%, why top price stays like this its not going higher or lower its just on same mark and older stuff getting lower and lower until its discontinued. How they set this price do all mobile company's make meeting where they speak about this or its just pure coincidence that other company's top line mobile phones cost about same?
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05-05-2007, 02:06 AM,
#5
Why Goods Are Losing Theyr Price With Time?
I think I misunderstood the question.

Also don't overlook that after a company has been making a product, whether it be a tv or a computer, after a couple years they have more experience making it which ups their productivity and lowers the cost of production.

Still I don't think there is any conspiracy going on outside of the "conspiracy of capitalism".

http://video.google.com/videoplay?docid=44...list+conspiracy

That video is mostly about international banking, but I think it might answer a few of your questions.
The belief in 'coincidence' is the prevalent superstition of the Age of Science.

&I don't understand why you're taking such a belligerant tone when you're obviously the ignorant one here. &
-triplesix
Reply


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