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JimmyDanger said:
theprof00 said:
JimmyDanger said:

You can't make a profit on high end TV's? Just ask Samsung! They're laughing all the way to the bank. And yes - Samsung's high end TV's are just as good (if not better in many cases) than Sonys.

And Rich people only buy as many TV's (probably the most expensive  "high end" TV's on the market , because they're y'know - rich and all) as people on 100k a year (I don't know if that's "rich" but 100k a year would make me a hell of a lot richer than I am now!) - have you seen those episodes of MTV Cribs? Rappers with 50" LCD's in every room of their house? A TV (or two) for the yacht, holiday retreats, custom limo/hummer - of course those "poor" people buy just as many TV's right?

Jimmy Danger, jsut so I can help you understand this debate between Kowen and myself, a couple months ago, Kowen made the statement that Sony was failing. After much argument, he pointed to tvs being the worst performing aspect of the company. I agreed. He went on to say that big changes would have to be made or the company would be facing dire straits, though I am unsure whether or not he mentioned axing the division as a solution.

Then, Sony made big changes, and pulled out a lot of stake in tvs. Suddenly, kowen was on the other side ofthe coin saying that this was a big mistake, and that by big changes, he meant "make it profitable". My argument was that Sony is in a tough position as they have to buy their equipment more than others and can't offer better prices.

You'd best not involve yourself in the discussion because Sony making the wrong decision is the only thing kowen ever sees, in any situation.

To address your other response, I meant as a ratio. For example, I make 40k a year and I have 5k$ worth of tvs. That's 8% of my income at any point in time. Does someone on cribs spend more than 8% of their income on tvs? I highly doubt it. Someone who makes a million would have to spend 80 grand on televisions in order to equal the same amount of spending. For a high paid actor, 20m per movie, they would have to spend roughly 1.6m on tvs.

The more money you make, the more the ratio looks like it would fail.

It's not hard to understand. It's a fundamental principle of economics. A shrinking middle class is bad for the economy because the things that the majority of people want become less affordable, and are bought in less quantity by the wealthy.


You and Kowen should get a room and have your private little massive debate in there.

You said something I disagreed with - (You can't make a profit off high end TV's) - I disagreed. I didn't realise only Kowen was allowed to disagree with.

And while I agree with the shrinking middle class = bad/shrinking economy - in regards to your "ratio" economics/Tv rationale  - there's a reason rich people generally remain rich, and that is because they don't spend 20 x on consumer goods as people earning 20 x less than them. They don't buy 20 litres of milk for your one (but they will generally buy a more "premium, high end milk", and maybe 1 or 2 times as much) or a 20k TV as opposed to a 1k TV. I have no doubt that someone on Cribs may spend 80k on "entertainment" (80k would be a cheap party hosting cost for catering/DJ's/Bands/Hosts/Decorations) - to match your %8. And while you pay off your 200k house (hypothetical example) - he (the 1 mill salary guy) is likely to not be paying off 3 or 4-  1 mill properties,  rather than paying off 30 * 200k houses (unless he's a property investor by trade). While Joe Citizen may have $50 left off his $400 per week at the end of the week (or say 1/8 - 12.5%) while Pinky McBling may well have 15,000 (or %75) of his 20k per week (can very depending on excesses) and still maintain a lifestyle well above the basic cost of living.

Some more basic economics - economy of scale doesn't necessarily translate from macro to micro. 2.5 % profit can be an amazingly good return for a multibillion dollar corporation primarily concerned with developing and selling goods (with the exception of some "boom" companies )- but disaster for a small to medium sized business. You'll find the further you go up the scale in terms of gross turnover the smaller the actual margins need to be. Why supermarkets can afford to sell much, much cheaper than corner stores (aside from their obvious group buying power).

well now you've gone and done that all in vain. Don't say I didn't warn you, but I definitely did not say that you couldn't make a profit on high end tvs.

If you want to make an argument about something, address exactly what point I made, because I can't tell. I didn't say 2.5% was bad. Kowen did, to which I pointed out that samsung was 1.7 and some other company (LG?) was 1.3.