Apple’s iPhone price drop

6 Sep

The blogosphere and other parts of the ‘net are atwitter with people upset with Apple’s $200 price drop on the iPhone. The iPhone, you’ll recall, was released just a little over two months ago.

Forgive me, please, but people need to stop whining.

Technology prices drop all the time. Whenever you buy something, you have to realize that in a short time, a newer, better, and possibly less expensive version is going to be released. The iPhone is no different. You got swept up in the mania, understandably so, and have been able to walk around for two months with the coolest phone on the planet while the rest of us wait for our cell contracts to run out. Don’t complain to me now about the price drop. You could have waited, you know–and some of us will still be waiting for our cell contracts to run out!

And while I’m at it, people need to stop, yes freaking stop looking for the lowest damn price they can find. Let me tell you what bottom feeding does by giving you a solid example.

Back in the 1980s, the Walt Disney Company came up with the idea of opening stores in shopping malls around the country. The Disney Store was born. Disney fanatics could acquire souvenirs, collectibles, clothes, and so on–a lot of the same stuff they could buy at a Disney theme park, without the added expense of travel and accommodations. For a long time, the Disney Store was successful.

Like any other retail operation, the Disney Store had sales in order to move slow moving merchandise. These sales would occur quarterly.

Then some genius figured out that if they had sales more often, they’d sell more stuff. The genius forgot the part about the lower price. But this practice–frequent sales–created an expectation in Disney Store customers that they could “wait and buy it when it goes on sale.”

Revenues took a nice nose dive.

The Disney Store wasn’t profitable, so Disney ended up selling it to Children’s Place.

Yes, that’s right–your local Disney Store is not owned by Disney.

This “I gotta buy it cheap” mentality leads to economic disaster. When you shop at Wal-Mart or Sam’s Club, you may think you’re saving a few bucks, but you’re also putting the local business owner out of business. The small guy who paid his employees $9/hour is now working alongside them at Wal-Mart for $6/hour. All because so many people wanted to save a few bucks by buying their crap at Wal-Mart.

While I’m on the rant, people should take a good look at what property tax breaks your local Wal-Mart received from your local government. Not only is Wal-Mart sucking the lifeblood out of local economies, but we tax payers are giving them a smaller tax bill to do so! sign-about-the-big-box.jpg

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