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photostill · 05-05-12, 19:27

One of the big problems in dealing with a monopoly, is that they can pretty much charge what they want. Until they reach the point that people stop buying solely because of value of the product is not worth the price. Microsoft has found a way around that. They can charge whatever they like and there is not much the customer can do about it.

What Microsoft has done to create this market condition, is make it a law that no new computer will be sold without an OS (Operating System). They make sure that their OS is dominate. Here in the states we refer to this as the Microsoft tax. If you want Linux, other than a few times it's been tried as the OEM OS for a maker, you can't really buy it on the computer as it comes. Dell tried this for a while but I am not sure the OS/computer combination is still available. If you run Linux, you still have to buy the computer with Win or Apple OS on it.

Now you can get the money for the OS back. It's a pain but can be done. You have to write Microsoft and set up the sending of the OS cd back for a refund. Don't be in a hurry to get that money back. You'll get it but it's made a pain on purpose in hopes you will just drop it and they'll get to keep the money.

There is always an excuse why the price has to go up. Corporations have overhead, the bigger they get, the more expensive it is to support the corporation. That means the price must always go up or the product must devalue. In the states how this is played I will use a can of corn as demonstration.

When the can of corn is the first product sold by the corporation, it has great packaging, plenty of volume of product, and a reasonable price. The corporation expands, needing more money. To get that money, the can becomes slightly smaller but the price remains the same. In so doing, the same amount of corn the factory ships out stays the same but the cans increase because they are saving a little out of each can for the next one.

The the can changes as to materials. It's cheaper to make cans out of aluminum than tin. Cost of aluminum is less. The difference in what is paid for raw materials is profit to support the corporation.

Then the price increases. Always some reason, like the price of corn went up, or the price of fuel went up. What you never hear in this is the corporation needs more money to support itself and it's side projects. Now that the price is high, the can is cheap, the next cut is to take more corn out of the can and replace it with salted water. Since it is being sold by net weight, your paying for less corn and more water.

The reduction in volume continues until it is obvious that the product isn't delivering the corn. So now it is time for the can to decrease in size. Rinse and repeat.

This has gone on so long that now the size of the average can is something like 10 oz in the store. Old recipes still call for 14 oz or even 16 oz cans.

What you never see, is the price go down and the volume go up. If it were true that money values decreased and needed increases in price to cover that, then why is it when the money value goes up the price doesn't come down? Or if the other way works of limiting product, why doesn't the product in the package increase? Neither happens. Here is the fallacy of pricing/volume excuses.

Software is even worse. Once designed, all they are selling is a plastic disc that costs no more than 19 to 20¢, less if purchased wholesale as corporations do. So what the real price is, isn't the product. They will sell the same product on the same disc for the next 10 years. So reproduction costs have approached pennies. It's the license you are spending the money for. The imaginary intellectual property that can't be fenced.

05-05-12, 19:27	#2
photostill The Enigma Join Date: Apr 2012 Posts: 9,977 Thanks: 3,009 Thanked 1,524 Times in 928 Posts	Re: Microsoft to Increase UK Prices by up to a Third! One of the big problems in dealing with a monopoly, is that they can pretty much charge what they want. Until they reach the point that people stop buying solely because of value of the product is not worth the price. Microsoft has found a way around that. They can charge whatever they like and there is not much the customer can do about it. What Microsoft has done to create this market condition, is make it a law that no new computer will be sold without an OS (Operating System). They make sure that their OS is dominate. Here in the states we refer to this as the Microsoft tax. If you want Linux, other than a few times it's been tried as the OEM OS for a maker, you can't really buy it on the computer as it comes. Dell tried this for a while but I am not sure the OS/computer combination is still available. If you run Linux, you still have to buy the computer with Win or Apple OS on it. Now you can get the money for the OS back. It's a pain but can be done. You have to write Microsoft and set up the sending of the OS cd back for a refund. Don't be in a hurry to get that money back. You'll get it but it's made a pain on purpose in hopes you will just drop it and they'll get to keep the money. There is always an excuse why the price has to go up. Corporations have overhead, the bigger they get, the more expensive it is to support the corporation. That means the price must always go up or the product must devalue. In the states how this is played I will use a can of corn as demonstration. When the can of corn is the first product sold by the corporation, it has great packaging, plenty of volume of product, and a reasonable price. The corporation expands, needing more money. To get that money, the can becomes slightly smaller but the price remains the same. In so doing, the same amount of corn the factory ships out stays the same but the cans increase because they are saving a little out of each can for the next one. The the can changes as to materials. It's cheaper to make cans out of aluminum than tin. Cost of aluminum is less. The difference in what is paid for raw materials is profit to support the corporation. Then the price increases. Always some reason, like the price of corn went up, or the price of fuel went up. What you never hear in this is the corporation needs more money to support itself and it's side projects. Now that the price is high, the can is cheap, the next cut is to take more corn out of the can and replace it with salted water. Since it is being sold by net weight, your paying for less corn and more water. The reduction in volume continues until it is obvious that the product isn't delivering the corn. So now it is time for the can to decrease in size. Rinse and repeat. This has gone on so long that now the size of the average can is something like 10 oz in the store. Old recipes still call for 14 oz or even 16 oz cans. What you never see, is the price go down and the volume go up. If it were true that money values decreased and needed increases in price to cover that, then why is it when the money value goes up the price doesn't come down? Or if the other way works of limiting product, why doesn't the product in the package increase? Neither happens. Here is the fallacy of pricing/volume excuses. Software is even worse. Once designed, all they are selling is a plastic disc that costs no more than 19 to 20¢, less if purchased wholesale as corporations do. So what the real price is, isn't the product. They will sell the same product on the same disc for the next 10 years. So reproduction costs have approached pennies. It's the license you are spending the money for. The imaginary intellectual property that can't be fenced. __________________ You can help this site, by clicking on the link below to buy a Premium Account. & Thank you for helping us. Click;