Saturday, August 24, 2013

Google Glass Economics - part one


As has been widely reported, qualifying to become a Google Glass Explorer is fairly exclusive (the total number of Explorers is 8,000 individuals). And then once deemed to be "in", becoming a Glass-wearing Explorer costs $1,500 (plus tax) and the time and expense involved in visiting Google offices in San Francisco, New York or Los Angeles to be trained and take ownership your unit.

I will have more to say about the "unique" nature of this would-be beta program, including the high price of entry, in another post, but since I teach Economics (as well as Marketing) and have a class coming up on "Opportunity Cost". I have to report on the "black market" in Glass, as represented on eBay.

While the Explorer agreement includes a ban on selling your Glass (gifting is allowed), there is a "buyer beware" market that I've been watching, with what amounts to 3 to 5 Glass units up for bid at any given time. The auction pictured here gives an idea of the asking price - with 4+ hours to go on the auction the bid is at $5,000.

So given an Explorer is willing to part with his or her Glass, and this pricing holds for long enough to post and execute an eBay auction, what's the REAL cost of being an Explorer? 

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