Get your wallets out

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Posted By: Hankron

The difference in pricing reminds me of the story about a wealthy man who lived in the neighborhood where I grew up. Years before I knew who he was he invented a computurized weather communcations/graphics system. When he first came out the with the system, he went to various trade shows and television stations trying to sell his system. His asking price was something like two to three thousand dollars. There were no takers. He hired a marketing expert, asking him why he couldn't sell his system, which he knew was a fine system. The marketing expert said that, quite simply, his sell price was way too low. He said that an executive at a television station would wonder about the reliability of a system that was so cheap. On the advise of the marketer, he raised the price to about $20,000 and sold his system many times over. The system was widely used by local television stations to present weather graphics on television, and the inventor became rich.

The moral of the story: people are stupid.