| When you buy electronics for Christmas, you can | | | | compare to the previous model? |
| often get outstanding deals on new products. | | | | When we ask these questions, we often find that |
| Read this article to find out the proper strategies | | | | there is a price to the "newness" of an item. It is |
| to use when buying gadgets and gizmos at | | | | always fun to say that you have the latest and |
| Christmas and throughout the entire year. | | | | greatest gadget. We all know these people who |
| Let's first ask this question: What is the primary | | | | are waiting at the store to get the hottest new |
| difference between a digital camera made today | | | | item. We know because they tell us all about it |
| versus one that was made 6 months ago? | | | | and show off their new techie toys to us. |
| If you answered "the price", you are probably | | | | But are they getting a good deal? |
| right. | | | | The answer is "absolutely not", with one |
| In my job, I am constantly doing product | | | | exception. |
| comparisons. There are two main categories that | | | | The features that are added to a "new" item are |
| I look when doing these comparisons: features | | | | usually those that you will never use or features |
| and price. | | | | that do not justify the exorbitant price of the |
| We need to ask the question, "What, if any, new | | | | item. For example, if we take a look at the top |
| features does this product have? What sets it | | | | rated LCD TVs, we can see a huge price |
| apart from its predecessors?" For example, if the | | | | difference between those that are 50 inches and |
| product is one of the new point and shoot digital | | | | those that are 52 inches. How much extra are |
| cameras, we look at things like usability, | | | | you willing to pay for those extra 2 inches? In |
| megapixels, style, and, most importantly, user | | | | many cases, the price for those 2 inches is about |
| feedback. | | | | 100% more. |
| The second category is price. How is this new | | | | The general rule is this: If you buy the latest |
| technology priced in relation to other cameras | | | | gadgets, you are paying more for the "newness" |
| that have these features? And, perhaps more | | | | than for the features. However, there is one |
| importantly, how does the price of this item | | | | exception to this rule. |