Because they are supposedly worth $9.99 and are instead worth their weight in plastic. I am assuming this is a way to inject short-term funds rapidly into a company to solve some immediate issue.
Not me saying they are worth $10. That's what TD prices them at for MSRP. They are discounted 99% of the time to $6 but that is still high. I have a book on reading comprehension to sell you.
They aren't worth $8.99. The MSRP is actually $6.99, which is what the typical "sale" price at TigerDirect when they aren't on rebate.
Amazon and Newegg sell the exact same fan for $7. Fry's and MicroCenter sell the same fan for $3.99.
NOTE: I am talking about the non-LED version (CF-012LB) which is what this deal is for.
As for them wanting a short-term cash infusion... I think you're reading too much into it. Most TigerDirect (TD-XXXX) rebates are merely cash changing hands from one Systemax company (TigerDirect) to the other (4MyRebate). I doubt they are even manufacturer-funded most of the time.
I read and comprehend fine, don't blame me for your inability to think though.
A price that you do not pay, such as price before rebate or "list price" or anything else is meaningless. They can make it whatever they want since buyers won't be paying it and market discipline is not applied to it. The only thing is that you might consider is that the pre-rebate price is the "penalty" if you don't submit the rebate correctly. In that sense it might matter.
Also the value or "worth" of a good is not based on its price. It's not based on MSRP. It's based solely on the good itself. The fact that you don't understand this most basic concept explains my original shorthand reply which assumed you were reasonably intelligent. I'm sorry for that assumption.
I agree with everything you said. Sounds like someone was paying attention in their business and marketing classes.
I think that's totally bizarre because some people receiving DOA units and instead of replacing them, Newegg just credited their account and told them tough luck. Then, it turns out they actually had some anyways.
I just read what lover wrote...
It sounds like someone was not paying attention in school. There are numerous iterations of the terms which require a more specific situation to be realized. MSRP is meaningless if they are utilizing a different marketing strategy, such as penetration pricing. However if it is someone like a motor vehicle MFG the MSRP is the only available price for new items, based upon their locked pricing strategy. In that situation the MSRP does matter. The price is locked in via contract and anyone abusing the price, lowering it, will have their supply contract terminated. Market value does not reign supreme in all cases, because that is situational itself. Also the worth or value I was referring to is actually the IMPLIED WORTH/VALUE which is what a reasonably educated person would understand when I personally am comparing the value of the fan to its weight in plastic. There are also multiple iterations of worth/value as well, these are also situational and need context.
It sounds like he went to the school of Marx and skipped the updated Porter & modern pricing strategies. Yes I went to business school as well.
Why are we talking about penetration pricing and other nonsense when I've said from the beginning they priced the fan over MSRP during the rebate period?
If you follow TigerDirect deals... you know they will offer a mail-in rebate on just about anything. A rebate is one of their favorite tools used to give a temporary discount on an item. They use them because they stand to benefit in at least 3 ways:
1) Positive customer reaction for TigerDirect brand --> May increase sales on other products down the line.
2) Rebate breakage --> Customers who simply fail to submit the rebate or miss the postmark date.
3) "Rapid Rebate Processing" --> TigerDirect's parent company, Systemax, also owns 4MyRebate. When people choose rapid processing, they are essentially giving back 10% of their rebate value back to TigerDirect, in a round about ways.
MSRP isn't a very important figure except to select products, such as: automobiles, fashion, televisions (i.e. Samsung/Sony unilateral pricing), and high-end radar detectors (i.e. Escort).
I thought satanslover summed it up pretty nicely: "They can make [the price] whatever they want since buyers won't be paying it and market discipline is not applied to it. The only thing that you might consider is that the pre-rebate price is the "penalty" if you don't submit the rebate correctly. In that sense it might matter."
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