Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Yes, I understand. If you buy a $10 vase or a $1,000 vase, the benefit of using a credit card to purchase it is exactly the same: it allows the purchase. Yet the cost for the former is 30¢ and the cost for the latter is $30. This is a price-based-benefit, which is how the card companies have chosen to charge for their service.

With a credit card, the product itself IS the financing, so yes, it can be charged differently based on other equal factors that may be different between people such as their credit score, etc. However, the CC company CANNOT arbitrarily say, "I think we'll charge Goofy more just because". They are charging more because they have a higher risk factor with people with low credit scores.


Do you suppose an extended warranty costs the same for a Toyota as for a BMW? Why not? The reliability factors are almost identical.

Even with the reliability factor being identical, it costs more to fix the exact same repair on a BMW than on a Toyota. Why? Because the items used and PURCHASED by that warranty cost more.


Why does Microsoft charge an individual user more than a corporate user, and a corporate user more than an OEM for the identical piece of software?

The OEM pays the least because they also take on the majority of the technical support of the product thus lowering the cost to MS. The Corporate user pays more than the OEM because they will have in-house support that will take a larger portion of the support, but not as much as the OEM thus raising the cost to MS. The individual user has almost all the support cost going to MS thus necessitating the higher cost.


What is the ONE continuous thread in all these scenarios? A higher cost (or likely higher cost) to the company in question - Something I am quite certain you know, but wanted to toss a red herring into the fray.
For Qualcomm, there is not higher cost to them when discussing the difference between a top of the line iPhone and a bottom of the line Android. THAT is the entire reason for the suit, and as I stated earlier, I fully believe it is justified.

Kathleen
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement