Expert: Marvinator - 4/27/2005

Question
Hi
I want to know what is the reason of wide range of prices of one product in internet stores. for example a digital camera that is 500$, you can find from 200$ to 600$. what is the reason? can we trust on the lowest price and buy from them.
thanks a lot

Answer
Most of the time, price differences come from buying power.  A company which is able to purchase a large lot of items can get a heavy discount form their supplier and then pass this savings on to the customer.  

In other cases it's just a matter of one company charging full retail and the other making only minor markup on the item.  

As for your final statement, you should NEVER EVER judge a company based ONLY upon the price of the item.  If you can, find people who have dealt with the company and get thier input.  In addition, do a search of the company on intenet search engines and see if there are any complaints made public.  Research of the seller on an auction goes beyond just looking at the feedback rating.  You HAVE to check out anything that is out there before you plunk down your hard earned money for any kind of item.  

This is precisely the main problem with the feedback system of Ebay as it shows only VOLUNTARY statements from customers and sellers alike.  A person with a zero feedback is determined to be something bad rather than just unexperienced.   If one takes the time to read both the statements, (a few of the good and a few of the bad) check out the ratio of good to bad, and finally to look at the depth of current auctions, one can get a better idea of who they are dealing with.  

Never go with JUST price.