Prices on your Christmas list

In Economics, prices are set with supply and demand.

demand_supply_price_equilibrium1

One thing that can shift the supply curve is a change in technology. As we have seen in many items like DVD players prices can drop dramatically as we figure out how to make them cheaper and faster.

Men’s Health takes a look at prices and innovation with four very popular Christmas list items.

  • HDTVs

"HDTVs have undergone an increibly steady price decline as production demand have increased. But the downward trend is slowing… Most experts think that prices will level off in the next year."

…so they say buy now.

  • Laptops

"Average prices look rock-steady. But if you don’t count the big three (Sony, Apple, and Lenovo), prices are actually dropping around 7 percent a year."

… so they say buy in July, August, or September because before then "products announced for the year begin shipping, driving up average costs."

  • Digital Cameras

"The average price is a reflection of both SLR and point-and-shoot cameras. The price for the latter is actually already leveling off below $200, so buy this year if you haven’t upgraded since 2003 – camera power has doubled. But digital SLR prices are expected to drop another 22 percent by 2010, to an average of $740."

…so they say buy anytime other than March, April, September, or October because the two biggest trade shows are in February and August and the month following prices skyrocket as they start shipping.

  • MP3 Players

"Expect average prices to remain relatively steady… Even as he price of memory drops new features like video and Wi-Fi, which keep prices at a near-constant level."

…so they say buy when the device is released because you will get the most bang for your buck.

Worried about prices online dropping right after you buy something…. go here.

"There are lots of stores out there that offer price protection policies — when the price drops on an item you’ve purchased, they’ll refund you the difference. But there’s a catch… it’s up to you to watch prices.
Price Protectr makes it simple to keep track of your purchases and get your money back. It’s free. It’s easy. It’s free and easy money. How often do you get that offer?"

Happy Shopping…

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Published in: on December 18, 2007 at 5:18 am  Leave a Comment  

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