"Digidesign's Mbox is a USB driven audio interface that features two analog input/outputs, 24-bit stereo S/PDIF digital I/O, two analog TRS inserts, a headphone output with dedicated volume control, and zero latency monitoring" ("Mbox two"). In layman's terms, the Mbox is a relatively small hardware unit that allows Macintosh and PC users to record music on their home computers. The Mbox works in conjunction with the music industry's most popular recording vehicle: Digidesign's Protools software, which comes free with the purchase of an Mbox unit. The list price for an Mbox unit is $495.00 ("Digidesign"). This pricing analysis compares the possible pricing strategies for an Mbox unit at three different point-of-purchase locations: SoftwareOrders.com, Rainbow Guitars, and Guitar Center. .
Digidesign Mbox Price Comparison .
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SoftwareOrders.com.
SoftwareOrders.com is an online computer software vender that has been in business for over 14 years ("Contact"). SoftwareOrders.com is selling the Digidesign Mbox for $435.00 with a minimum shipping cost of $20.39. SoftwareOrders.com has most likely chosen to sell the Mbox at this price because the average retail cost for the unit is around $450.00. Since SoftwareOrders.com does not charge sales tax for its merchandise, customers would pay a total of $455.39 for the Mbox. This price equates to a slightly lower out of pocket expense to the consumer, which helps SoftwareOrders.com stay competitive.
Additionally, SoftwareOrders.com does not specialize in musical merchandise or computer recording products. This means that SoftwareOrders.com most likely sells a significantly lower number of Mbox units in comparison to Guitar Center or Rainbow Guitars. Since it moves fewer products, SoftwareOrders.com must keep its prices around the market average in order to maximize its overall profit margin on the Mbox unit. Additionally, SoftwareOrders.com likely attracts customers who are willing to pay a slightly higher price in return for the convenience of ordering products online.