RE: [ihc] Presto dizzy on ebay

[Tom Harais <THarais@xxxxxxxxx>]

-----Original Message-----
From: Steven Stegmann [mailto:steve.stegmann@domain.elided] 
Sent: Monday, October 11, 2004 5:02 AM
To: John M. Adams; ihc-digest
Subject: Re: [ihc] Presto dizzy on ebay

> That list price is not what IH charged for it when it
> was new.  That's a current price for NOS.  IH is
> upping the prices on old stuff that has been laying
> around, and nobody is buying, so that when it get's
> scrapped, the holder can claim a bigger write-off.  I
> found this when looking for parts for my rebuild a
> couple years ago. Irritating but I see their point.

Steve:

That's illogical.  For book and/or income tax purposes, they can only "write
off" what their cost basis in the product would be - their inventory basis.
Potential selling price would not matter.  I think some parts guy is
spreading rumors. :-)  But, I've never seen that kind of thing happen at any
company I worked at. ;-)  I'm more inclined to believe that supply and
demand is at work here.  Thus IH would up the price of NOS they still have
on hand, believing that they could get a higher price due to a limited
supply with a consistent demand.

Supply and demand have been on my mind a lot lately.  The first rule of
economics you know.  The reason they've been on my mind is because we have a
presidential election coming up and all the economic BS is flying with no
sound basis in free market economics in the first place.  I can't believe
what people say, think or believe when it comes to general economics.

Of course, one of my subordinates here at work who bought a new Expedition
about two months ago, just told me the other day that the Expedition would
be getting 40 MPG if the oil companies weren't colluding with the auto
manufacturers to keep mileage down.

Yeah, and Elvis is alive and hiding in our CEO's closet.

Tom H., '76 Traveler