Posts Tagged ‘pricing’

A buck or a pound / A buck or a pound

Monday, 27 October 2008

As European politicians and pundits tut-tut over the ostensible relative deficiencies of American economic policy, pay attention to what is happening to exchange rates.

By itself, the absolute level of exchange rates isn't particularly meaningful — that's really just a matter of scaling. but movements of exchange rates are significant. When the value of one currency is dropping relative to that of another, it means that people are trying to shift holdings in the former to holdings in the latter.

These days, the dollar is generally strengthening with respect to the pound and with respect to the euro, which means that people are trying to increase their share of currency that buys stuff in America relative to their share of currency that buys stuff in Europe.

That doesn't mean that economic conditions in America aren't bad, but it strongly argues that conditions in Europe are worse.

A Quality of Mercy

Monday, 8 September 2008

I ran across this (fisher) price schedule:

unitsprice
100–999$1.50 each + $200 short-run fee
1000–2499$1.50 each
2500–4999$1.30 each
5000–7499$1.20 each
7500–9999$1.10 each
10000–24999$0.90 each
25000–49999$0.80 each
50000–99999$0.70 each
100000–249999$0.60 each
250000and up$0.55 each

If the business were mine, then I would amend the table thus:

unitsprice
100–866$1.50 each + $200 short-run fee
1000–2166$1.50 each
2500–4615$1.30 each
5000–6874$1.20 each
7500–8181$1.10 each
10000–22222$0.90 each
25000–43749$0.80 each
50000–85714$0.70 each
100000–229166$0.60 each
250000and up$0.55 each
For unit counts not in the ranges shown, please call us.

Granted that there might be a few belligerent customers who insisted on buying a count in one of the ranges for which there was no listing; these could be offered the price as per the first schedule. (Or a flat fee of $350 for any number from 1 to 99.)