"M. Adam Davis" wrote:

> Lastly, it is just another product which they can fix a higher price to.
>  It may not cost them more, but just like a 2.2GHz P IV processor
> doesn't cost more to make than a 1.8GHz, it has a percieved greater
> value, and is charged is such.

I don't think it is a matter of it costing more to make.  There are several
factors involved.  One factor is the extra cost of engineering to get the
speed up from 1.8GHz to 2.2GHz.

If I recall, Microchip only manufactures 20MHz processors.  However due to
the manufacturing process, not all of the PIC's will pass the 20MHz test.
Instead of throwing away the ones that won't pass at 20MHz, lets lower the
price and sell them at 4MHz.  This may not be true with Microchips products
but it is true with other products.  Not even nessicarilly electronics
either.  Could be lumber, carpet, fabric, etc.

As far as charging more for faster response, I agree that a higher price for
faster service is not un-called for.  I have one client right now that is
getting a cheaper rate cause it is taking me forever to get his product to
him.  Have full time job during the day and can only do my normal business at
night and weekends.  Add to the fact that I am prepareing for my death
(getting married in May).  I don't have as much time as I would like to work
on the project.  If I wanted to spend more time on the project, I could spend
less time getting ready for the wedding at the risk of it costing more.
Luckily my client (Hi Randy) is very understanding in this.  If he wasn't, I
would have to charge more to cover the extra cost that it would cost for my
wedding.

Not all hours can be measured one customer against another.

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