Tuesday, May 16, 2006 3:32:22 PM
delete options/BTO - semantics and precedent
Calling something a delete option or a BTO option is just semantics. A company can sell a base unit for $950 and offer a $50 option, or price their base unit at $1000 and offer a $50 delete option - it's all the same in the end, except which number they can use in their ad. What is the difference between giving you a $50 credit for something that costs them $15, and adding $50 to the base price for something that costs them $15? The credit could be made less to cover inventory, but beyond that the pricing and margin is the same as a base model w/o the option.
I agree, if they offered delete options for almost everything it would be a total mess. But, historically, SuperDrives are one of the things that were not in the base model and sometimes offered as BTO, or in the higher model. As the cost comes down, and usage goes up (like Airport cards) it makes sense to bundle them.
IIRC I would have had to spend $100 for a Superdrive in my iMac G5 last year (maybe a fractional Ghz bump came with that too?). Looks like it is $50 now on the mini - I'd still go external at that price.
There are some obvious reasons why they would not unbundle the iLife apps, but that is a different story.
-KCMW
Calling something a delete option or a BTO option is just semantics. A company can sell a base unit for $950 and offer a $50 option, or price their base unit at $1000 and offer a $50 delete option - it's all the same in the end, except which number they can use in their ad. What is the difference between giving you a $50 credit for something that costs them $15, and adding $50 to the base price for something that costs them $15? The credit could be made less to cover inventory, but beyond that the pricing and margin is the same as a base model w/o the option.
I agree, if they offered delete options for almost everything it would be a total mess. But, historically, SuperDrives are one of the things that were not in the base model and sometimes offered as BTO, or in the higher model. As the cost comes down, and usage goes up (like Airport cards) it makes sense to bundle them.
IIRC I would have had to spend $100 for a Superdrive in my iMac G5 last year (maybe a fractional Ghz bump came with that too?). Looks like it is $50 now on the mini - I'd still go external at that price.
There are some obvious reasons why they would not unbundle the iLife apps, but that is a different story.
-KCMW
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