The 10% Factor: What goes up must come down…

Well, a couple of months ago VMware and many other US software vendor annouced a 10% price increase. Hey, that really helps to defeat the mistaken impression that products are “premium”, just for “enterprize business” and are “expensive”. Anyway, no soon had VMware and Citrix and others jacked up their prices, then prices went down again. 

The rationale for the first increase was all down to currencies. You see up until recently the greenback was weak against the euro and british pound [Watch out, the British are coming!!!] The argument was our strong currencies were kicking the butt of the US Dollar and we getting products priced in US dollars way cheaper than we should have. Tut-Tut. Clearly, nobody was looking at the price of barrel oil when they made this statement. The problem with this argument was the weakness of the dollar against other currency was not some wierd event that just started in 2008. It actually began back in 2001. I aint saying nothing about what the significant event was in 2001 for fear of being flamed alive! :-) .

But do you remember what President Bush said “It’s voodoo economics”. Then Reagan made Bush Snr his VP after Bush had run against Reagan in the Primaries! 

http://www.wisegeek.com/what-is-voodoo-economics.htm

Anyway, like it or lump it – whether you think there is any rationale to the currency argument – the prices got cut again. Back down by 10%. Why? Well, market conditions had change – more excrement hitting the fan apparently… Anyway, my favourite photo of recent times – was sign placed on a lampost opposite Wall Street. All it said “Hey, bankers – why aren’t you jumping?” [or words to that affect]  Looking back on that photo – i thought it was probably in very bad taste considering that other event that happened in 2001….

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