re: #234 sattv4u2

Well, I’m not sure what to say. You’re claiming personal authority, but, likewise, I’ve both owned and run a business and currently work in a business where I deal with production costs and our retail prices on a daily basis. We never, ever say, “our production cost went up so our price is going to move”. We say “our production costs went up for that line of products so the profit margin on it dropped”. We don’t really have many direct competitors, so it’s harder for us to feel out ideal price point, so we tend to underprice as a conscious strategy.

Anyway, we’re trying to sell the most units we possibly can at the optimal profit margin. Obviously the margin has to be above zero, but if we priced goods by adding up how much they cost us to make and then slapping an arbitrary number on top of that, we’d go out of business very soon.