D600 Full Frame announced! (not official yet)

[daredevil123]

your point that "economies of scale will never drive prices down as companies will never automatically pass savings on to the consumers".

If you read properly, that is not my point. Remove the "never"s, and you get closer to my point.

My point is, Economies of scale ALONE, do not means lower pricing, because companies do not AUTOmatically pass on savings on to customers, WITHOUT other external factors.

Everything you mentioned are OTHER factors. No point continuing this discussion, since every likes to bring in "other factors".

 

[edutilos-]

If you real properly, that is not my point. Remove the "never"s, and you get closer to my point.

My point is, Economies of scale ALONE, do not means lower pricing, because companies do not AUTOmatically pass on savings on to customers, WITHOUT other external factors.

Everything you mentioned are OTHER factors.

Oh, yes, I missed out the "alone in my quoting", apologies. The context is the same though, is it not?

Cheers.

 

[daredevil123]

I wasn't referring to economies of scale, but the elasticity of demand. Highest price doesn't guarantee highest revenue. To get the highest revenue, one has to analyze the elasticity of demand. As mentioned earlier, if a drop in price can entice more buyers such that overall revenue increase, a seller will be incentivized to do so.

Profit is maximized when marginal cost cuts marginal revenue, and not at the highest price. This is true even in a monopoly.

Cost savings may be fixed or variable, and cannot be directly translated to the consumer. In addition, if there is no competitive pressure, the manufacturer has no incentive to drop his price, thereby translating the cost saving into a higher profit margin.

In any case, greater interest in a product is generally beneficial for the individual consumer, when considering the price of the product.

I agree to your points, but elasticity of demand is "other factors". Companies are not obliged to lower prices without other pressures or incentives. We are both talking about the same thing.

 

[daredevil123]

Oh, yes, I missed out the "alone in my quoting", apologies. The context is the same though, is it not?

Cheers.

No it is not.

I am raising a point that, when people talking about economies of scale, it does not necessarily means lower prices... it simply means lower costs... with no relationship to prices to end consumers.

Just check back with your economic theories you learnt in school. and you will know I am right in saying that.

 

[daredevil123]

I was referring to this part which follows my (mis)quote.

If you insist that this does not support your point, then I rest my case. :bsmilie:

This is my case. I am not talking about specific cases nor am I talking about specific conditions. I am talking about how generalization like these are inaccurate.

No it is not.

I am raising a point that, when people talking about economies of scale, it does not necessarily means lower prices... it simply means lower costs... with no relationship to prices to end consumers.

Just check back with your economic theories you learnt in school. and you will know I am right in saying that.

 

[edutilos-]

No it is not.

I am raising a point that, when people talking about economies of scale, it does not necessarily means lower prices... it simply means lower costs... with no relationship to prices to end consumers.

Just check back with your economic theories you learnt in school. and you will know I am right in saying that.

Yes, of course, that is fundamental.

Just to point out that I am not sure how the bandying about of "economies of scale" originated. I really don't think Blur Shadow or I actually brought it up, relooking the conversation?

 

[edutilos-]

Oops, I just noticed Blur Shadow's first post. Problem solved then. :bsmilie:

 

[daredevil123]

There are merits to this. If demand is sufficient, manufacturers can achieve greater economies of scale, and thereby, possibly, lower prices for consumers.

Yes, of course, that is fundamental.

Just to point out that I am not sure how the bandying about of "economies of scale" originated. I really don't think Blur Shadow or I actually brought it up, relooking the conversation?

There you go. It can save us more time and keystrokes in the future, if you read up the context of discussions before jumping in.

 

[edutilos-]

There you go. It can save us more time and keystrokes in the future, if you read up the context of discussions before jumping in.

Hahaha, my bad.

Sorry, all your responses make sense now, if all of them were in reference to Blur Shadow's first post. Cheers!

 

[daredevil123]

Hahaha, my bad.

Sorry, all your responses make sense now, if all of them were in reference to Blur Shadow's first post. Cheers!

No problem. you have a good day too.

 

[Blur Shadow]

No problem. you have a good day too.

Sorry if the trouble started from me!

 

[Fudgecakes]

Chill la bros. we already have a raging debate about Samsung and apple already. We don't need another one here :3

 

[daredevil123]

Sorry if the trouble started from me!

no need to apologize.

 

[daredevil123]

Chill la bros. we already have a raging debate about Samsung and apple already. We don't need another one here :3

i think everyone is quite chill here actually...

 

[Fudgecakes]

i think everyone is quite chill here actually...

Yeah. I guess I'm abit lag

 

[daredevil123]

Yeah. I guess I'm abit lag

Not lag la.. it is just a civil discussion. not some flame war..

 

[san2001]

Without other forces, companies will always price goods the highest price the market can bear. Economies of scale alone, will never drive prices down, as companies will never automatically pass savings on to the consumers. Prices will only lower due to other factors, like what you say, with more competition or elasticity of demand. In the end, the main driving force of any company is always profits.

Not necessarily. IKEA is a company that makes a ton of profit via a lot of efficient measures that include economies of scale. They also happen to pass on some of the benefits to the consumer.

There are many ways of making sizable profits. High margin is just one of them. Plenty of companies make a lot of profit from low margin and high volumes too. Apple is one of the few exceptions that have high margins and high volumes.

 

[Fudgecakes]

Not lag la.. it is just a civil discussion. not some flame war..

I thought the atmosphere felt abit.... Hot initially. Guess its just me

 

[Cheesecake]

I'm just waiting for the official announcement n then it is buybuybuy!

 

[rain5533]

I'm just waiting for the official announcement n then it is buybuybuy!

Keep this up.. BBB virus attack In Singapore again..

Don't forget open new thread of where can get the stock or better price...

I'm support you at behind only