“I had no idea I was being a sucker,” I wrote in my post on how coffee shops and other retailers root out the areas in which I am less likely to notice price variations. Since being a sucker is not one of my favorite things to do, I’ve continued to read with fascination about other ways in which retailers figure out where or how they can charge consumers a higher price for something that doesn’t cost them any more.
My new discovery: color.
The book, The Economic Naturalist, by Robert Frank, described its assessment of the question, “Why does Apple sell its black laptop computers for $150 more than for otherwise identically configured white ones?”
Apparently, in July 2006, the Apple website listed the price of a 13” MacBook in white at $1,299 and the price of a 13” MacBook in black at $1,499. But the MacBook in black had a hard drive with an additional 20 GB. That explains the $200 price variation, right?
Well, the book notes that you could actually get the MacBook in white with the larger hard drive (the additional 20 GB) as an option, for an additional $50. Everything else was identical between the white and black versions. So in the end, the black version cost you $150 more.
I thought that was pretty interesting. Since the date of the example was from a couple of years ago, I thought I’d mosey on over to the Apple Store website to see if things have changed since the time of the example in the book (2006)—or since the book was published (2007).
Clicking through to get to the MacBooks, there were three MacBooks featured on the main MacBook page:
- 13” MacBook in white with a 2.1GHz processor;
- 13” MacBook in white with a 2.4GHz processor; and
- 13” MacBook in black with a 2.4GHz processor.
| APPLE MACBOOKS | |
| 13 inch: white | 13 inch: black |
| 2.4GHz Intel Core 2 Duo | 2.4GHz Intel Core 2 Duo |
The difference? Once again, the hard drive: 160GB vs. 250GB. Again, it looked to me like that was what was driving the price differential.
So I clicked on the 13” white. Just as in the book’s example, the hard drive was a configurable option. The upgrade option?
“250GB Serial ATA Drive @ 5400 rpm [Add $100].”
In other words, if you make all of the stats and features identical, the 13” MacBook in white is listed for $1,399 and the 13” MacBook in black is listed for $1,499—a $100 price premium to pick black.
The trick here is that you have to know that this type of pricing may be going on—and work your way through the configurable options for each model to see if there is a less expensive option that suits your needs (assuming for the moment that you can get by with a different color).
Granted, color choices can mean different things in different contexts. For many, the choice of a laptop in white or black may only be a mild preference. It could be a bit different to have to drive around town in a car that’s an electric lime green, when that’s so different than your personality that it makes you uncomfortable; and colors in cars can have practical effects as well (with certain colors showing dirt more readily than others).
But for me, this is just like the coffee pricing example—a reminder that retailers are quite sophisticated in determining where and how you are willing to pay more. If I’m willing to pay more for a certain color, that’s one thing—but it looks like I’ll have to be more diligent to at least be aware that’s what I’m doing!
Related Posts:
How Much Is That Coffee In The Window (How Coffee Shops And Others Sneak Past Our Frugality)
How The Word “Free” Makes Us Lose Our Minds
wow, that is so interesting. Wonder if I paid more for my black Ipod? :)
Interesting post, I wonder if it has to do with marketing as much as anything. If I see a bright white laptop I know almost instantly that is an Apple computer, however in black who knows. The more you see the white the more you think about a Mac. Sounds like advertising to me.
I know on other items it is the same, inparticular new washer and dryer set I recently purchased. If you want them in black you will pay a premium versus in white. I really wanted the black and knew I was paying more, to make them stand out less in their location. They both work the same and are equally efficient.
I know what you mean. A while ago, when I was renewing my cellphone plan I noticed that I was eligible for a new phone. So I was able to get a Motorola SLVR for free. The funny thing is that the hot pink SLVR I got was free, but the black one was $35. I looked at the specs and they were EXACTLY the same except for the color. Since I'm a girl I didn't mind the pink one, but I asked a coworker if he would pay $35 for the black one and he said yeah, there is no way he would use a hot pink phone even if it were free. LOL.
Oh, f'r hevvin's sake! That's quite a discovery.
Appliance manufacturers have always zinged consumers for the privilege of getting a coat of enamel in a color other than white. Actually, when the Euro look was in and everyone suddenly WANTED white, you had to pay extra to get white appliances. From what Philip says, it sounds like they've gone back to nicking you for not-white appliances.
Now if we could get Apple to make those things in oxblood red...how much would you pay to get a red MacBook?
"How much would you pay to get a red MacBook?"
Some people will pay $450 extra.
I noticed the extra cost of the black and the overpriced HD and RAM, so I bought the fastest processor macbook (in white) with the lowest other specs. I will add additional RAM and HD space when necessary.
Baglady: I noticed that Lazy Man & Money also does not mind pink to save some cash.
Surely it would have something to do with smaller build runs for the alternative colours, they don't sell as many so the economies of scale and automation aren't there?
Thanks for all the comments, everyone!
The book I mentioned, The Economic Naturalist, which introduced this question to me seemed to think it cost Apple the same to produce the black version as the white version. It surmised that the pricing decision came from Apple's experience with introducing a black iPod in Fall 2005, which it priced the same as the white iPod. But the black iPod sold out quickly, leaving the white ones in stock.
thanks for shedding some light into this! it's a good 'wake up call', for many of us... we should learn to be more inquisitive, and not just do what we are told, eat what we are fed... come to think of it, companies make a lot of money, just by changing the 'packaging' of virtually the same products...
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