08-28-08: Learsfool
Macrojack is correct, I feel, in speaking of willing buyers and willing sellers
converging.
This is precisely what constitutes a market.
08-28-08: Learsfool
I disagree strongly with the statement that only the market sets the price,
particularly in the used market...
If willing buyers and sellers converging is what constitutes a market (and it
is), then it is nonsensical to disagree with the idea that the market
(willing buyers and sellers converging) sets the price.
Your post indicates more education is required on your part to understand
the market concept, because on one hand you seem to understand elements
of a market, but on the other hand you make statements that would never be
made by someone who understands the concept.
Now, there exist different paradigms for different buyers. Some buyers focus
on items that are only priced, or available, at 50% or less of their original
retail. These buyers will limit purchases to items that fit this criteria. For
these buyers, the 50% rule applies all the time.
There are other buyers who do not limit their choices to items available only
at 50% of retail, or less. These buyers have the advantage of purchasing from
a wider pool of available components, but they may pay more than 50% of
retail if the market dictates a higher price. These components will not be
available to buyers in the first category, because an offer of 50% of retail for
one of these items will fail, and a buyer willing to pay the market price will
win the item.
So, I see the possibility of both scenarios being correct, and appropriate to
their core buyers.