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Old 07-21-2014, 08:51 PM   #31
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Did nobody take economics in high school? Prices can be out of equilibrium for a period to help drive sales, it is the intent.
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Old 07-22-2014, 02:33 AM   #32
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Did nobody take economics in high school? Prices can be out of equilibrium for a period to help drive sales, it is the intent.
True, but co. that prices incorrectly for long periods of time will go out of business one way or another. Look at what happened to Macy's department store that tried to do, every day low price with no sales, did not work.
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Old 07-22-2014, 07:16 AM   #33
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True, but co. that prices incorrectly for long periods of time will go out of business one way or another. Look at what happened to Macy's department store that tried to do, every day low price with no sales, did not work.
Pretty sure you're thinking of JC Penny in this case.
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Old 07-22-2014, 11:44 AM   #34
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True, but co. that prices incorrectly for long periods of time will go out of business one way or another. Look at what happened to Macy's department store that tried to do, every day low price with no sales, did not work.
Costco sells most of their stuff for below market prices and is still profitable.
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Old 07-22-2014, 12:47 PM   #35
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Costco sells most of their stuff for below market prices and is still profitable.
My understanding is the membership fee is Costco's profit.
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Old 07-22-2014, 01:31 PM   #36
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I am thinking about replacing a lifetime premiere box (and selling it) with a mini to eliminate one of the two cable cards I have. (keeping my roamio which has a cablecard).

In the long run the mini will pay for itself.

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Old 07-22-2014, 08:53 PM   #37
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Contrary to what most people think, the free enterprise system always guarantees that you will pay the highest price the market will bear for everything.

TiVo used to sell their hardware at deeper discounts than today and charge less for service. They almost went out of business. Today, they sell the hardware at about break even, and charge much more for the service, yet (excluding the phased recognition of damages from lawsuits) they still barely break even. So, low prices didn't drive any economies of scale. The retail TiVo, compared to a cable company's DVR, is really more like a high end vehicle like a Lexus or BMW versus a Fiat or Kia. They all do the same basic things, but the TiVo, like the Lexus, costs more because it is "better" than the alternative, in some peoples' opinion. Is there a "value equation" for buying a Lexus instead of a Kia? Perhaps, perhaps not.

The simple story is that without the Mini the only way to get its functionality is with a full TiVo DVR. The cost for that is much more (both for hardware and service) than the costs associated with a Mini. Rather than looking at it as "$100 for a Mini and it does nothing without service" I would submit it would be better seen as "it does everything a TiVo DVR does at half the price or less, and costs less than half as much for the service."
But that's just it. TiVo doesn't cost more. It actually costs less in the long run. In the seven years I've had FiOS. It would have cost me easily over $1k to have been using their DVRs. The same goes for Comcast in my area. TiVo has cost me less money and provided me more. It just has a higher upfront cost. But in my area it is easily less expensive than the cable company in the long run.
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Old 07-23-2014, 02:28 AM   #38
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Pretty sure you're thinking of JC Penny in this case.
You could be correct, but it was one department store that changed their pricing model and it did not work.

Costco has their own type of pricing with membership fees that does work.
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Old 07-25-2014, 07:18 PM   #39
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But that's just it. TiVo doesn't cost more. It actually costs less in the long run. In the seven years I've had FiOS. It would have cost me easily over $1k to have been using their DVRs. The same goes for Comcast in my area. TiVo has cost me less money and provided me more. It just has a higher upfront cost. But in my area it is easily less expensive than the cable company in the long run.
True...in the long run. Most people don't look at the long term...they see a $1000 price tag on a Roamio Pro with lifetime service and decide that the cable company DVR isn't so bad after all.

If we couldn't buy TiVos with lifetime service there would have been no point in switching from DirecTV to FiOS. The monthly cost for hardware to service all of our TVs would have put DirecTV and FiOS within a $10/month difference in total cost (once the new customer discounts expire).

So, in a very real way, Verizon gained an additional customer because of TiVo.

Hey Verizon, can you hear me now???
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Old 07-26-2014, 04:07 PM   #40
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I think they do it to "make money".
Contact your local cable company and ask them what they charge/month for a second DVR.

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... but am shocked at the egregious cost of using a Mini in my house.
The trivial things that 'shock' some people never cease to amaze me.
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