Price advantage on buying Online...!!!

You are almost certain to find any camcorder or DVD player are being sold at a wide range of prices for same Product.

Ofcourse with no overhead cover, garage operations and with low operating costs push price below manufacturers suggested retail price.

Another (hidden) secret of online price variation is that eRetailers offer the same products at vastly different prices as marketing strategy. Because if everyone sold DVD or Digtial Camera for the same price then their is no reason for shop comparison, we almost certainly would buy from the same places/e-retailer, which makes companies profits stagnated.

Retailers who vary their prices over time—increasing and then discounting later creates kind of price instability that encourages consumers to shop around or wait. Thus we trent to visit many sites before buying, which ofcourse what they want us to do.

another interesting thing, I read recently no matter where you buy iPod products would cost the same. Because Apple use an Minimum Advertised Price to discourage resellers from discounting. Its lowest price any retailers are allowed to advertise. MAP is usually enforced through marketing subsidies offered by a manufacturer to its resellers. If a retailer keeps prices at or above the minimum advertised price, then a manufacturer like Apple will give them money to help advertise. If a store's price dips too low then manufacturer can withdraw these advertising subsidies.

This helps smaller retailers compete, since it aids in reducing the kind of cutthroat price competition from big-box stores that can put them out of business. Also, Stable prices are important to the company with retail outlets, because it's a manufacturer and a retailer (both online and through its chain of Apple Stores). If Apple resellers dropped prices on iPods at or below cost to get customers in the door, or as a way to cross-sell stuff like software or iPod skins—they could squeeze the Apple Stores out of their own markets.

And Ofcourse downside is, almost everytime MAP keeps prices artificially high (or at least higher than they might otherwise be with unfettered price competition). As for Apple, part of what you pay for when you buy an iPod or a MacBook Pro is for its coolness feature. But for Digital cameras, LCD TVs, and DVD players tend to be so similar from brand to brand and model to model that low prices play a larger role in determining which of them we ultimately buy. When we purchase an iPod, however, it's understood you're getting something unique. And you can be sure Apple knows that—and sets its prices accordingly.