Comment Re:Regions and business strategy (Score 2, Interesting) 249
The idea is: People in, say, sub-saharan Africa have less money and less disposable income, so they can price their product cheaper there and make up for it in volume. While people in, say, the US have a lot more disposable income and can withstand paying twice or three times as much as those in SSA.
The problem with this model is that Americans know that if the company is selling it cheaper elsewhere they're still definitely making a profit there, and price discrimination based on geography is bullshit. They're making money in Sub-saharan Africa charging $2, AND ALSO making MORE money in the US charging $12. It's totally bullshit for them to charge ME $12 when Mbutu only pays $2 while still turning a profit for the company. Why should I pay anything when the company is just trying to bilk me out of an EXTRA $10 when they're still making money on $2? Fuck them, I'm pirating and giving them $0 instead.
That kind of thing. The idea of geographic segregation only makes sense if there's actually barriers to delivery that are different between areas and ALSO an asymmetry of information. There is neither since the internet exists, so any geographical segregation is utter bullshit and laughable.
The problem with this model is that Americans know that if the company is selling it cheaper elsewhere they're still definitely making a profit there, and price discrimination based on geography is bullshit. They're making money in Sub-saharan Africa charging $2, AND ALSO making MORE money in the US charging $12. It's totally bullshit for them to charge ME $12 when Mbutu only pays $2 while still turning a profit for the company. Why should I pay anything when the company is just trying to bilk me out of an EXTRA $10 when they're still making money on $2? Fuck them, I'm pirating and giving them $0 instead.
That kind of thing. The idea of geographic segregation only makes sense if there's actually barriers to delivery that are different between areas and ALSO an asymmetry of information. There is neither since the internet exists, so any geographical segregation is utter bullshit and laughable.