[quote name='gamerdogbert']Apple charges sales tax in ALL 50 states, and always has as a matter of corporate policy, even before they actually had stores in all 50 states. However, what we're talking about is the difference between whether you have a positive balance of store credit that you can spend on purchases, instead of paying "cash" for them by letting Apple charge your credit card. If you have a $0.00 balance on your account and you make a purchase, Apple automatically charges your credit-card-on-file and they add sales tax. But, I discovered that any time you have sufficient store credit from a gift card to cover your purchase, only the actual purchase amount is deducted from your balance, NO sales tax is added on. Test it, I bet you'll be surprised.
It all boils down to how easily and likely it is to get a deal. Real world products purchased with cash come from retailers who act as a middleman in-between us and the game/music companies, and they need to continually reduce prices in order to keep sales up, so the game/music companies have no choice but to go along with it. However, digital distribution removes that middleman and also removes most of the costs and overhead that would necessitate a steady curve of markdowns to stimulate sales. If they go 2 months without selling a single digital copy, they've lost very little money, whereas a retail store would have lost a ton. And their profit margin is also sky high because they get to keep the cut the retailer would have gotten, plus the overhead savings too. Basically they can milk it for all its worth with nearly zero risk. So they only budge on prices JUST enough as what they barely have to. Aside from Steam, what digital distribution service do you ever see doing aggressive, deep sales? None. iTunes doesn't, for sure. You'll get the occasional $1-3 discounted album, but you're not going to find page after page of 75% off music, ever. So we take what we can get, and try to buy gift cards at less than their face value. I mean, if you wanted to buy a hamburger and you had a $10 bill, but I offered to sell you a punch card good for $10 worth of hamburgers for $9, why wouldn't you buy it? You'd still be getting $10 worth of the hamburgers you enjoy, which basically never go on sale, but you'd also walk away with an extra $1 bill in your pocket that you could buy a candy bar or a soda some other day. If that's the best deal the hamburger chains are going to allow you to have, then either you take the deal or you pay full price. Why not take the deal?[/QUOTE]
I graduated with a degree in business, and while we went over tons of commerce stuff, they never went over this. While I knew a lot of this already, some of it I never thought about. I learned something today, thanks to you
