Here's an interesting thought. What would it take for telescope prices to actually come down? A miracle? Zombie apocalypse? Comet or Asteroid impact extinction level event...assuming of course that at least you and some telescope retailers and shipping companies survive. LOL!
How many times in recent history have prices for highly sought-after and very desirable "things" hit very high orbits, even geosynchronis and then returned to low Earth orbit prices? I'm not refuring to consumer electronics and items that get cheaper because of advancement in technology and lower prices because they get easier to manufacture. I cannot thinkof too many.
Clear skies and keep looking up!
It is often said that prices for consumer goods tend to be sticky- in both directions, and that latency (which is actually better interpreted as a slight weakness in correlation to demand as I’ll show below) is because consumer demand is but one influence. As a very general rule, they don’t shoot up at the first sign of increased demand, but they also don’t drop at the first sign of waning demand either.
You’ll usually see the noteworthy (more painful) price increases after manufacturing costs (raw material costs, labor shortages, etc), logistic costs (shipping, warehousing, etc) increase along with demand- it usually takes a few variables to trigger hikes. (These price hikes differ from- and are often in addition to- the normal price bumps that usually occur annually.)
It’s a safe assumption that demand will soften at some point in the future, but unless and until meaningful decreases follow in the Cost of Goods Sold, retail prices will resist meaningful reductions. It may certainly happen at some point, but consumer demand is only a part of the complete breakfast.
To see good example of this (on the downward side of the equation), browse through 20 years worth of Astronomy magazines and note the list prices for Meade or Celestron products. They decreased for a good while (you can come up with a number of theories in why that is- production efficiencies, technological advances driving the electronics costs down- both reductions in CoGS, perhaps demand was on a downward trend all those years, who knows), but that suggests price movements are the result of a complex web of influences.
The real danger (for industry) is when they are unable to lower prices DESPITE a big drop in demand because CoGS reductions haven’t trickled down yet. That’s when you lose companies.
Edited by Creedence, 04 August 2021 - 09:19 PM.