How come neither fred nor bob paid tax? Given a modest 5% tax, Fred would have paid a further $300 more. If you put in much more realistic numbers (75% back, and tack on tax) you'll see the margins are MUCH larger.
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Upgrading every refresh?
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How come neither fred nor bob paid tax? Given a modest 5% tax, Fred would have paid a further $300 more. If you put in much more realistic numbers (75% back, and tack on tax) you'll see the margins are MUCH larger.
Consider this scenario
Bob buys a mac at $1500 a holds onto it for 4 years, and then sells it for $300 after 4 years, when he buys a new mac. His total for 4 years worth of computing = $1500 * 1.08 - $300 = $1320
Fred refreshes every year buying the same $1500 mac and selling it at 75% (a more realistic number). After 4 years, Fred has lost an entire macs worth of money in margins 4 * 25%=100%. And on top of that, he's had to pay sales tax 3 more times than fred. Fred's total for 4 years worth of computing = $1500 *1.32 = $1980.
The difference? $660
Bob buys a mac at $1500 a holds onto it for 4 years, and then sells it for $300 after 4 years, when he buys a new mac. His total for 4 years worth of computing = $1500 * 1.08 - $300 = $1320
Fred refreshes every year buying the same $1500 mac and selling it at 75% (a more realistic number). After 4 years, Fred has lost an entire macs worth of money in margins 4 * 25%=100%. And on top of that, he's had to pay sales tax 3 more times than fred. Fred's total for 4 years worth of computing = $1500 *1.32 = $1980.
The difference? $660
When you're already spending thousands of dollars on something, a $660 difference over 4 years is meaningless.
When you think deeper about it, $660 is pocket change, really. I've spent more than that in less time on my aging PC desktop.
There are other considerations besides money that are more important than that $660-over-4-years difference.
$660 is a great mid-level gaming PC, look what these guys did with just $500:
If you're spending that on an aging desktop pc....then you're doing it wrong.
Tax and shipping can very from place to place. So how about Fred and Bob bought their MBP online at MacMall - so no tax or shipping. Better?
I guess we have different definitions of MUCH... and of course if Bob has one more issue then that is wiped out as well.
Why should I build a completely new system when the old one remains fully functional and can use some upgrades in key places? Especially since I'll have to reinstall everything and then end up being forced to replace that $442 system ($500 with 13% total sales taxes) with new parts on its first anniversary... no thanks.
I don't replace my computers every year, instead I do a big system upgrade every few years with small incremental part replacements in between. Is that a problem?
You're not making any sense.
Still thinking best case scenario. Guarantee many of the refreshers don't go through MacMall, and a good portion aren't willing to.
Not sure what you mean when you say "if bob" has one more issue. You mean after his AppleCare is up? I would say issues with Macs arise like issues with reselling arise. Equate the two. Better?
Actually my post made perfect sense. Your's however is rather confusing.
First, please note that I am NOT in favor of upgrading every year. Look at my previous posts.
1. "Reinstalling everything", you do this with your new Mac too. If its only done once every 4 years, "reinstalling everything" isn't bad. Plus there are migration assistants to help with this.
2. Actually you can spend the full $500 on parts. Newegg and Tigerdirect have no sales tax, and free shipping if you're a good shopper. Plus TONS of discounts.
3. Why would you upgrade your PC after 1 year? Now YOU'RE not making any sense. First you say you'd upgrade your PC after 1 year, THEN you say you only upgrade every couple of years. Which is it?
4. Please do not try to misdirect the conversation. My post was very clear and sensical. Simple posting "you're not making sense" tends to be a defense mechanism for a flawed argument. If you claim the other persons logic is non-sensical, then its an easy scapegoat to leave the conversation. If there is something you don't understand, state why and I will try to respond.
I upgrade almost every year and I always put my old machine for sale at exactly 66% of what I paid. It usually sells pretty easily.
In my opinion, buying a brand new machine for a 33% of the cost is more efficiently than updating individual components (RAM, SSD, etc). That's why I don't mind my MBA being non-upgradable.
In my opinion, buying a brand new machine for a 33% of the cost is more efficiently than updating individual components (RAM, SSD, etc). That's why I don't mind my MBA being non-upgradable.
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I don't understand your first point - so they aren't willing to try and get the best deal they can? Anyone using Fred's scenario should try and get the best deal they could.
In my scenario Bob didn't purchase AppleCare. If he did then it swings even more toward Fred since if he refreshes every year he wouldn't purchase AppleCare ever.
So Bob's cost would be
$1499 - MBP
$250 - Apple Care
-600 - Selling MBP after 4 years
$1499 - New MBP after 4 years
$250 - Apple Care for new machine.
$2898 Total
Fred would be
$1499 - MBP
-1100 - Selling MBP (not quite 80%)
$1499 - MBP
-1100 - Selling MBP
$1499 - MBP
-1100 - Selling MBP
$1499 - MBP
-1100 - Selling MBP
$1499 - MBP
$3095 Total
So in this case for ~ $200 Fred gets a new/update machine every year. Bob still wouldn't be covered his 4th year of owning the machine as his Apple Care would have expired.
If Bob did every 3 years so he would always have AppleCare it would be
about $2700 figuring he would get say $200 for his old MBP. Fred would be at $2696!
Again just showing a possible scenario.
So you assume everyone shops at MacMall? Also, all the BTO options cost more at macmall. You'll pay the sales tax through those.
No straws. I like the constructivenes of your comment. It really adds to the thread.
Buying every refresh seems to be the better scenario.
If you buy aftermarket parts you could always just save the factory hardware and put it back in when you sell the old computer. Then put the used ssd, ram, etc. in the new one.
Also, if you buy on a back to school event with an education discount then you lose very little money on resale. I realize this isn't possible to do every time but at least the first time. Not everyone has access to student discounts and you can't have a computer year round to take advantage of every back to school event. New generations are announced before the event, so to get the most resale you'd have to sell while the old model is current or go computerless for up to a month(ish).
If you buy aftermarket parts you could always just save the factory hardware and put it back in when you sell the old computer. Then put the used ssd, ram, etc. in the new one.
Also, if you buy on a back to school event with an education discount then you lose very little money on resale. I realize this isn't possible to do every time but at least the first time. Not everyone has access to student discounts and you can't have a computer year round to take advantage of every back to school event. New generations are announced before the event, so to get the most resale you'd have to sell while the old model is current or go computerless for up to a month(ish).
the hassel of selling high dollar items on a fairly frequent basis is why i dont do this
i will buy and sell when I feel I need to update. I wont update for the mere sake of updating
i will buy and sell when I feel I need to update. I wont update for the mere sake of updating
There are many factors. Apple can raise the price of the MacBook. The resale price may nor 80% (or whatever), economic conditions, currency fluctuations, ect...
The biggest factor? Time. Most people's time is worth more than the effort and hassle one would have to expend by selling their MacBook every 11 th month. Why do you think AppleCare is for 2 additional years? Apple knows this is the optimal time for replacement. businesses only replace computers every 3-5 years. Only fanatics with too much time on their hands do it every year. Now, if you have the extra money to spend, then it makes more sense. However, the incremental technological upgrades makes a weak case for yearly upgrades.
The biggest factor? Time. Most people's time is worth more than the effort and hassle one would have to expend by selling their MacBook every 11 th month. Why do you think AppleCare is for 2 additional years? Apple knows this is the optimal time for replacement. businesses only replace computers every 3-5 years. Only fanatics with too much time on their hands do it every year. Now, if you have the extra money to spend, then it makes more sense. However, the incremental technological upgrades makes a weak case for yearly upgrades.