Wiring

[Papa]

So what are you saying? All the reviews have been glowing.

My perception on pricing is: When the latest and greatest product is released the manufacturer attempts to set there position in the marketplace, a "list price" and than retailers offer their "Market price", based on wholesale cost, typicaly about 10% lower. As the product gains acceptance in the market place, supply and demand begin to equalize, the market price does so as well. Next I expect to see markey positioning "list price", to adjust further, to be more competitive with the ever growing competition. I suspect that Tower has there pricing set as a percentage of the wholesale cost, and as there existing inventory runs out they will adjust their price accordingly. Based on the wholesale cost of their new inventory. FIFO.

We saw this most recently with the new CRT. The fair market price in the first 30 days was the list price, as the supply began to increase, the market price has reduced by about 10%.

Market positioning, GAAP, economics 101.