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Finding Holiday Discounts on iPods?
Posted by
Cliff
on Mon Dec 08, 2003 06:10 PM
from the getting-a-hold-of-a-real-bargain dept.
from the getting-a-hold-of-a-real-bargain dept.
jeffy124 asks: "I was hoping to get an Apple iPod for Christmas. Alas, it's too expensive and out of the budget. So I'm forced into purchasing it for myself. Hoping to cash in on a holiday season bargain, I've been keeping my eye on the sales circulars that come in the newspaper. I've seen plenty of discounts for MP3 players of all kinds (Rio's, Dell's new HD-based player, etc), and the iPod has also shown up. Christmas does not yet seem very merry to me. They're always at the regular $299/399/499 price, never at a discount of any sort. You read that right, it's 'for sale' at the *regular* price. Stores guilty of this include Best Buy, Circuit City, Target, and CompUSA. Why do stores do this? How often? And does anyone know why Apple has been singled out while their competition has gotten their products discounted? Anyone know who *is* granting discounts on iPods this holiday season?"
"The other day came in the mail a 10% off coupon for various items at Best Buy, including 'MP3 Players' as indicated on the front of slip. Hoping this was how I was gonna get that discount, I set aside time this weekend to drive to Delaware in order to skip out on my local state sales tax too. I turned the coupon over, and in the legal disclaimer was the phrase 'Excludes Apple iPod Players.' Needless to say, a Merry Christmas is still aways off."
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apple fixes the price (Score:5, Insightful)
next issue?
Re:apple fixes the price (Score:5, Informative)
I work at an Apple Authorized Reseller in Los Angeles, and Apple has made it pretty clear that if we drop the price by more than $50, we aren't going to be an authorized reseller much longer.
Personally, I think it's terrible, because there is quite a profit made on Apple hardware by us, particularly G5 desktop systems, and iPods.
Basically, we could knock a good 74-100$ off the iPod without losing money. And I think if we did such a thing, we'd get a pretty healthy customer base very quickly.
Parent
Re:apple fixes the price (Score:5, Insightful)
Parent
Re:apple fixes the price (Score:5, Insightful)
Patagonia lets retailers discount, but they generally have to:
a) notify the rep first
b) not discount stuff that they're told not to discount!
It's really a pretty common practice with high-leverage brands.
FWIW I was told - and I don't work the retail channel, so have no way of confirming this (but not reason not to believe it) that the profit on the CRT iMac (and probably the current eMac) was CDN$20
So while you complain about price gouging on the high end, remember the non-existent profit margins on the low. Keep in mind too that those customers buying the CDN$20 computers ('cause that's what they're worth to me) are the biggest pains - they're going to take forever to make a decision, ask you to explain why your iMac is better than a Dell at $50 less, come back regularly and ask questions which you think should be obvious.
So basically, you make no money off your low-end customers.
So I got no problem with Apple fixing prices and retailers making decent markups - as long as it's backed with reasonable warranties and decent products.
And there's where the iPod fails: 90 days is a joke, and a battery that's not changeable by the user is a travesty of epic proportions. Why anybody's buying this thing, I don't know.
But I want one...my precious.
Parent
One company can't "fix prices"... (Score:5, Interesting)
It appears, Dingleberry, that you have a disturbingly common misconception: that because only Apple makes Apple products, that makes them a monopoly. I will first give a relatively standard answer: does Sony have a monopoly because only they sell PlayStations? No. If Sony were the only company that sold gaming consoles, or held a supermajority of the market, and they actively fought to keep it that way, then they would be in a monopoly position. If Apple were the only company that sold MP3 players, or held a supermajority of the market, and actively fought to keep it that way, then they would have a monopoly and your position would be reasonable.
The other difference is that between monopoly pricing and price fixing. The former can only be done by a monopoly that holds a supermajority of the market in a particular commodity (a single company). The latter can only be done by what is commonly known as a cartel, a group of companies in the same industry that get together to decide what the price of the good or service they all sell should be. If they collectively hold enough of the market, they can keep prices as high as they want, because the competition cannot make enough of a dent in their market share to really compete.
You can be sure that even if the market share of the iPod dropped from its current level of (I believe) about 80% down to 40%, Apple would not lower the price by a significant amount. This is because Apple doesn't keep the price high to gouge us or because they're a monopoly, they do it because that's the kind of company they are: they make expensive, high-quality, high-profit-margin items that people buy because they're the best, not because they're the most affordable. In other words, they're not a monopoly, and nor are they trying to compete on the same footing as companies like Dell and HP, which always compete on price. They compete on quality, instead.
They're worth it.
Dan Aris
Parent
Just wait... (Score:5, Funny)
Re:Just wait... (Score:5, Informative)
BB, CC and their ilk will beat prices or match them. I have never had a problem getting them to match a price up to 30 days from the purchase date.
Parent
Re: Finding Holiday Discounts on iPods? (Score:5, Funny)
If you have to get a loan for $49 [ipodbattery.com], you probably shouldn't buy an iPod.
Or any MP3 player for that matter.
- Tony
Parent
Do not buy Creative junk! (Score:5, Informative)
I have about 5 of their products, including a
hard drive based MP3 player. What a waste of
money. I am not buy another Creative product.
I have owned an Apple ipod also. Nice mp3 mplayer.
I am loving my new Rio Karma though.
Parent
Two words: EDUCATION DISCOUNT (Score:5, Informative)
So get yourself to your local college bookstore and either find an oblivious checkout clerk or contact a friend who has a friend who is still in college.
You save at least $40.
Parent
Re:Two words: EDUCATION DISCOUNT (Score:5, Informative)
Parent
Shop at Best Buy (Score:5, Informative)
Parent
Blame Apple (Score:5, Insightful)
If you want a cheaper ipod, your best bet is most likely going to be eBay.
Re:Blame Apple (Score:5, Interesting)
Yeah, this is pretty common. Microsoft does this all the time with their retail software and the X-BOX.
What annoys me Mail-In-Rebates. It seems like all of the advertized prices for Best Buy, Comp-USA, Staples, yada yada, require rebates. Some require two or more. Rebates suck because you have pay up front, go to the trouble of mailing them in, and then you have to wait 4-6 weeks and hope. Plus you get nailed for the full price on the sales tax.
Parent
Re:Has no one said the more likely? (Score:5, Informative)
Parent
Re:Has no one said the more likely? (Score:5, Funny)
I bought the new Blink182 CD at best buy for 10 bucks, but rememberd I wanted the Christmas Story DVD, too. It was also on sale for $20, but I don't know how much they were losing on that.
Blink 182 and Christmas Story. Dude - You are the loser here.
Parent
Ebay? (Score:5, Informative)
Re:Ebay? (Score:5, Interesting)
Parent
Manufacturer's doing a deal (Score:5, Insightful)
I don't think it's morally right to say that a product is 'on sale' unless there's been a reduction in price though - at least in the UK, there must have been an immediately preceding period at which the product was priced higher for it to be marketed as at a 'sale' price...
Simon.
Re:Manufacturer's doing a deal (Score:5, Insightful)
I think people forget that any time any person or business sells anything, they are having a sale. "Sale" has come to take on the meaning of reduced prices but I don't think people's inability to recall the original meaning of words needs to be legislated.
Parent
Re:Manufacturer's doing a deal (Score:5, Insightful)
Parent
Educational discounts! (Score:5, Insightful)
Price Limits (Score:5, Interesting)
Re:Price Limits (Score:5, Informative)
This is the difference between vertical restrictions on price (i.e. Apple the manufacturer, and downstream retailers) and horizontal restrictions (all oil-producing companies and the price of oil).
This concludes the daily antitrust lesson
Parent
Re:Price Limits (Score:5, Informative)
Say Best Buy sells an iPod for 399(MSRP), and Joe's DisKount ElectroniX sells it for 349 next door. Best Buy spends money advertising the availability of iPods, hires salesmen, etc. Joe is a 1-man shop with no ads, except for a big sign on their front window that says "IPODS: 349". They're located right next to Best Buy.
From Apple's perspective, Joe is freeriding off the efforts of Best Buy. Best Buy is pissed off because it loses sales to Joe from keeping it's retail price up, so it stops promoting the product and drops it's price. Apple is pissed off because no one knows about its product except for tech nerds who scour the internet review sites. Therefore, antitrust law tends to allow retail price maintenance in the absence of monopoly.
I think you're exactly right - the reason Nintendo got in trouble was because it colluded. I thought it was about the price of cartridges also, not about systems, but i could be wrong.
Parent
Re:Price Limits (Score:5, Informative)
Let's get the facts straight right now. the console gaming industry, on average, does NOT work on the Razor/blades economic system. the GC is sold at a profit, not a loss.
Parent
Re:Price Limits (Score:5, Insightful)
You are very ill-informed. One company setting a price for a product is not "price fixing". Other companies can and do compete against Apple's iPod with lower prices, so go buy those instead if you don't like the prices. Now, if Apple got together with Dell and Rio or whoever else, and conspired to keep prices at a certain level, then that's "price fixing" and it is anti-competitive and illegal. Secondly, if Apple is a monopoly in the market, they can also achieve the results of price fixing without conspiring with another company. A couple of months ago, Apple had about 30-40% of the market in terms of unit, and about 50% in terms of dollars spent. It is not a monopoly.
Similarly, BMW and Benz are not "fixing prices" just because their products are expensive. The are simply luxury goods, like $500 portable music players.
Parent
"For Sale" does not mean "On Sale" (Score:5, Insightful)
I haven't seen ipods for anything less than MSRP at any B&M either, probably due to the demand being so high.
Apple doesn't discount (Score:5, Informative)
The only time you will find Apple products for sale is when Apple passes along end-of-life discounts. (i.e. right before the new model comes out)
Capitalism 101 (Score:5, Insightful)
To make money.
How often?
As long as the market will bear.
Supply and Demand (Score:5, Insightful)
Step 1) Create product
Step 2) Sell it at market price based on supply and demand
Step 3) Profit
It's so easy, even Microsoft can do it!
Re:Supply and Demand (Score:5, Insightful)
Now, if Apple had an agreement with all the other companies to keep the prices of all mp3 player high, that would be something to be concerned about. But at the end of the day it's Apple's product and they can should be able to charge whatever they like for it. If the product doesn't warrant the price, people won't buy it. If people don't buy it at the higher price, the market will force Apple to lower their prices. It all comes back to Adam Smith and his Invisible Hand.
Parent
What about a refurb? (Score:5, Informative)
resellers are forced (Score:5, Informative)
Apple price-fixes, but allows bundles (Score:5, Informative)
Because Apple does not allow you to sell Apple products below the pricing offered by Apple themselves.
Apple does, however, let you bundle things- so your best bet is to look for the best bundle(free case etc). Smalldog and MacConnection are among several catalog companies who regularly do these deals, because it's the only way to be competitive(and not a terribly good one, either.)
Do get a case; mine was scratched all over within a half week, and I was excruciatingly careful with it. Also, DO get an extended warranty, and DON'T GET IT FROM APPLE, it's shorter and MORE expensive than Best Buy's(for example.)
FYI- don't bother looking for an iTrip. I placed my order two months ago with Griffin and they have yet to ship me mine. It's getting cancelled tomorrow, I'm fed up of waiting, and I hear the FM adapters all suck anyway.
Re:Apple price-fixes, but allows bundles (Score:5, Informative)
Nice job of leaving out the next paragraph. This is probably what the original poster was refering to.
Parent
Apple still can't make enough iPODs (Score:5, Insightful)
They're maintaining the price and pushing a huge advertising campaign, it's a good strategy, higher price & lower volume = bigger profit & lower manufacturing cost.
They don't need to discount...? (Score:5, Funny)
Kinda like toy fads -- what kid would want to accept a cheap knockoff "Fondle Me Herbert" doll when all their little pals have "Tickle Me Elmos"?
-fren
- - redundant - - (Score:5, Informative)
Apple sets it. You can't re-sell Apple products below this set level. Nobody can.
Yes, Apple has been sued for this. (not successfully IIRC).
In fact, Apple HAS successfully sued resellers for selling under MAP. They put some of them out of business - they were called "Grey-market" MACs, they were bought overseas, and sold into the US market. (some people ended up frying the power supplies because they were set to 240 instead of 120).
Other industries have also been sued for MAP, and gotten their asses handed to them. But since Apple is *NOT* a monopoly, they can get away with it. Don't like it? Buy a competitor's product.
Free iPod... (Score:5, Funny)
"on sale" != "lower price" (Score:5, Informative)
On sale means that items are being sold...for example, "On sale now!" means that the product is currently available in stores for your purchase. Not necessarily that it is available at a special, lower price.
Yes, I realize that "on sale" can also mean that you've got a new, temporarily lower price...but it doesn't have to.
We get signs up all the time for new games and products that say "on sale now", and then people get upset when we're charging the same price as our competitors.
yrs,
Ephemeriis
Price Control is a common retail practice. (Score:5, Informative)
What you are seeing is an example of "price control." Price control is a relatively common practice, especially for companies that create higher-end products and have limited (or no) direct-to-customer distribution. Essentially, Apple has the ultimate discretion as to which retailers it will sell iPods too. In order to qualify to carry an iPod, that retailer, be it Best Buy, Circuit City, or any other, must enter into a binding agreement with Apple as to the pricing of the unit. Under that agreement, discounting of the units is generally either completely disallowed, or allowed only with manufacturer approval. Thus, the Best Buys and Circuit City stores HAVE to sell the iPod at whatever price Apple tells them to.
Where it starts to get shady is when a retailer that hasn't signed a price control agreement with the manufacturer gets their hands on the price controlled units, and starts selling them at a price below the manufacturer's price point. This generally happens when a retailer that has an agreement with the manufacturer unloads some overstock or demo units, when a retailer goes bankrupt, or when a shipment "falls off of a truck." Many manufacturers that use price controls get very, very unhappy when this happens. Most price controlling manufacturers will cut off sales of product to retailers that sell overstock to discounters. This can lead to shady, under-the-table dealing, units with serial numbers ground off so the manufacturer can't trace who sold it to whom, and general malaise. Most manufacturers won't honor the warranties on items purchase through third-party discounters.
If you think Apple's price controls are nasty, take a look at the high-end watch world. Companies like Rolex won't even allow retailers to advertise the prices of their watches AT ALL. Take a look at a jeweler's ad in the newspaper for Rolexes- they'll always say something to the effect of "call or visit for pricing." Watch companies are also well known for forbidding internet sales. And they put out propaganda to the effect that all watches sold by discounters are counterfeit.
It's the manufacturer's world. We're just here to consume.
10% discount means $269 at Target (Score:5, Informative)
I signed up for the Target credit card and got an instant 10% off. That saved me $30 right there.
Then they gave me a smart card reader, and another 10% off my next credit card purchase, plus another 10% off any on-line purchase.
Wow. I'm done. It was easy, and to be honest I haven't used their card since. Maybe I'll start using it if my current "favorite" card continues to screw me with their crazy rules.
DELL's stackable coupons (Score:5, Informative)
Partner Links Through Amazon yielding discounts (Score:5, Informative)
A longtime mac bloggish site is linking to amazon, and offering actual discounts on a variety of apple hardware. Including the iPod.
Click on over to MacInTouch [macintouch.com] for a little bit off. It's linked off towards the bottom of the home page. It's not a huge discount, but the only one I've seen:
iPod 10GB: $284.05
iPod 20GB: $379.05
iPod 40GB: $474.05
I Just Asked Froogle (Score:5, Informative)
http://www.darrenbarefoot.com [darrenbarefoot.com]
Words. Words. Words.
Nice iPod used/recon'd inventory... (Score:5, Informative)
Re:Isn't it Apple? (Score:5, Insightful)
Apple cannot control what you actually SELL it for, though.
However, if you're a retailer and you know you have X allocation of iPods, and you can sell them all at full retail, why discount?
Parent
Re:Forget it, go for the Rio Karma (Score:5, Funny)
Parent
Re:Why an Ipod? There's a better alternative... (Score:5, Informative)
I'm sure someone makes an armband-style case for iPod owners who want one.
No movable parts so no skipping unlike the ipod
The iPod has 32MB of cache. The average song encoded at a 128K bit rate is 4MB. So about 6 to 10 songs should fit into the iPod cache. I suppose skipping could become an issue for the iPod if you strap it to a running paint shaker and listen to it for a while.
The Ipod is overkill in terms of storage (The Iriver can hold 5-50 cds depending on the sampled bitrate but normally I'd say around 6-10)
Says you. I have a 30GB iPod, and I like being able to carry around my entire CD collection in my shirt pocket. No matter where I am, I can listen to any song I want, any time I want.
The Ipod is too big & heavy
The size of a deck of cards and the weight of 2 CDs is too big and heavy? Do you have severely atrophied muscles because you've been in a coma for the last 10 years, or something?
The Ipod battery fails after about 18 months and costs over $100 to replace
Lies, all lies. Some people have had battery problems, not everyone. The majority of people with original 5GB iPods who posted when this was brought up a week or two ago are having ZERO problems. And if $100 is too rich for your blood, you can replace the iPod battery yourself for $50. [ipodbattery.com]
The Ipod is just a notebook/laptop hard drive in a clean looking case but just as fragile as any other hard drive
I haven't read of anyone who has had issues because of drive fragility. People who are really concerned about it can buy a case. I prefer to just take good care of my stuff.
I've read nothing but excellent reviews for the Iriver mp3 player and own one and it's the best I've ever had.
I've read nothing but excellent reviews for the iPod, and own one, and it's the best I've ever had. Neener neener neener!
I don't agree with the argument that you get more storage for the same price from an Ipod. What's the use if it's overkill? If it was an external hard drive or something along those lines I'd agree but it's not.
Ummmm, the iPod is an external hard drive. You can store anything on it, you can even install an OS on it and boot from it. For someone who claims to have had an iPod, you sure don't seem to know much about them.
~Philly
Parent