In Reply to: RE: Caveat emptor! yes with all things.......... posted by Sordidman on June 14, 2012 at 16:09:06:
Sumflow:> ..they set a price based on what the market will pay.
Sordidman:> No. The price is set according to a number of factors. Again, you need to go out and get some listening experience. And some knowledge about what you are talking about....
What is the average mark-up of a retail price vs the "street" price of many high end components? In general, what is the "cost to build" percentage vs the retail price of most components?
See: http://youtu.be/caFD7bwkuEc?t=44s
Charge what the market will bear. A business wisdom that comes from Greek and Roman times. If prices were based on cost we would not pay a dollar at MacDonald's for what costs three cents with the cup, for soda. This man clearly says the cost to build products has nothing at all to do with rinsing prices. They set a price based on what the market will pay, and he explains why.
In the old Peanuts comic strip, Lucy had a lemonade stand. But instead of selling lemonade, she offered psychotherapy. The sign over the stand read “The Psychiatrist is In — 5 Cents Please.” “Why do you charge five cents?” Charlie Brown asked her one day. “It’s what the market will bear,” Lucy replied.
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Follow Ups
- Price .. what the market will bear. - Sumflow 23:55:09 06/20/12 (0)