how computer market is similar to housing...
I am looking for a used PC to replace my wife's current system (which I also purchased used), and was struck by the similarties between the computer and housing markets.
The majority of older PCs for sale on craigslist have outrageous asking prices, interspersed with a handful of reasonably priced systems that are up to 50% less than other comparable used systems being advertised. But the reasonably prices systems are definitely the minority, and you have to wade through dozens and dozens of listings to find the bargain. So many people just can't accept how much value their PC has lost in 2 or 3 years. In fact, many sellers comment on how they paid THOUSANDS for a given system, therefore this must be a bargain.
At the same time, you can go to Dell's web site and find a brand new PC with far supperior specifications to most used systems for just $370. Why would anyone buy a used box for $250 when they can get far better new one for just a little more?
This seems eerily similar to the housing market. It is the builders who are the quickest to cut prices if that's what the market dictates. By contrast, most individual home-owners will hang on, refusing to sell, refusing to believe that a home isn't worth what they think it is.
I suppose I shouldn't be surprised at seeing similarities between housing and computers. Human psychology doesn't change just because they are buying and selling computers instead of homes.
Still, it gives me something to think about...
The majority of older PCs for sale on craigslist have outrageous asking prices, interspersed with a handful of reasonably priced systems that are up to 50% less than other comparable used systems being advertised. But the reasonably prices systems are definitely the minority, and you have to wade through dozens and dozens of listings to find the bargain. So many people just can't accept how much value their PC has lost in 2 or 3 years. In fact, many sellers comment on how they paid THOUSANDS for a given system, therefore this must be a bargain.
At the same time, you can go to Dell's web site and find a brand new PC with far supperior specifications to most used systems for just $370. Why would anyone buy a used box for $250 when they can get far better new one for just a little more?
This seems eerily similar to the housing market. It is the builders who are the quickest to cut prices if that's what the market dictates. By contrast, most individual home-owners will hang on, refusing to sell, refusing to believe that a home isn't worth what they think it is.
I suppose I shouldn't be surprised at seeing similarities between housing and computers. Human psychology doesn't change just because they are buying and selling computers instead of homes.
Still, it gives me something to think about...
Comments
Until recently, Most used computers from Dell and the big box retailers came with everthing installed on the defaults. Including the Junkware. Some people look at the time savings vs. the level of skill or effort required to fix up or configure the PC to where they are comfortable. They are willing to pay more for their lack of time and/or skills.
Just my anecdotal experience. Sounds more like houses all the time...
Every house is different -vs- Every computer has different hardware/software/viruses
It's not just your house, it's your home -vs- It's not just a computer, it's your brain's home
I guess there are one or two similarities.