We have expectations of value in response to price. I was down at Kelly Sheet Metal and ordered a three sided object to cover the ice trays in my freezer. I wasn't sure of what the fair price should be, but when they said $25 I was happy, but walking back to the car, thinking of how long it would take them to do it, the value of the worker's time and the cost of materials, and the value of them being there, rather than off making Revolutionary Era Furniture (the value of them just idling around waiting for me or other customers) I came up with $20.
Sure enough, when I showed up today there it was with a $20 ticket on it. If, at the beginning they had said $50 I might have walked. Fifty sounded too high. If, when I went to pick it up they had said $30 I would have paid it, rather than try to haggle. It may well have been a fair price and who was I to say no.
All this leads to this blog site, where the blogger says that the market clearing price on a Kindle is 99¢.
And, with the Kindle it is there in your hot little hand just a couple of minutes later, literally two or three minutes later you are opening it up and reading.
Hat tip to the Instapundit.
Regards — Cliff
1 year ago