Not So Dismal

Making Economics a Little Easier to Understand

Posts Tagged ‘Pricing

Cheap Macs Aren’t the Point

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Here’s an excellent article from Daring Fireball’s John Gruber on why the “$800 Macbook”, a concept that began as literally one man’s rumor and grew into some sort of backwards conventional wisdom, was not announced at yesterday’s Apple event. One stat in particular that is so telling as to Apple’s philosophy toward their product line: the Mac had 18% of US marketshare, but 31% of revenue share for the industry. Where others are commodities, Macs are not. This makes Apple more protected in a period of economic uncertainty like the one we face today than, say, Dell because with the Mac, it never comes down to price. “PCs” are inferior goods (in the economic sense), but Apple’s most loyal customers are the ones that have nowhere else to turn. The creatives and professionals rely heavily on the type of tools that either only exist or exist in their best forms under OS X, an operating advantage that no other company can have.

[Disclaimer: I own AAPL shares.]

Written by caseyayers

15 October, 2008 at 3:54 pm

Daily Dismal: West Side’s the Best Side

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Gotta love the Jaguars, right? Although they lost to the Pittsburgh Steelers Sunday night, the stadium atmosphere was electric and reminded many people, including me, why they are season ticket holders in the first place. Here’s an interesting question, though. Look at the pricing graph that Jacksonville used in the pre-season while selling those season tickets:

Duuuuuuuvaaaaallll

Focus on the light-blue on the west side versus the bright-orange on the east side, then take a gander at the prices. Since there’s ten games in a season, those west-side tickets cost $14 per game more on average than those on the east-side of the stadium. What’s up, here?

The sun, that’s what. Those fans on the west side are slightly less likely to get toasted, at least in solar terms, throughout the season. Fans on the east side, alternatively, are looking right into the source of what is often blistering heat early in the season. And at all times, of course, the sun can create a bit of glare, especially with those Sunday, 1PM games that make up the majority of the season. So why aren’t all of the seats on the west-side more expensive? Because those seats are the first ones to really gain any effect, since the sun tends to fall down the southwest corner of the stadium. The sun issue is also why a select number of more affordable club seats are available on the east side, while they all garner the highest price point on the west side.

A few other benefits exist, as well. One could argue it’s a little easier to enter and exit the stadium, traffic-wise, from the west, which points towards downtown. Also, the Jaguars bench is on the west side and most on-field entertainment focuses on the west side. But at the end of the day, it’s all about what SPF fans need to apply early in the season. As a Jags ticket agent once told me, “West side is the best side.”

Written by caseyayers

6 October, 2008 at 7:51 pm