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A Walk on the Edge

637
Oh no...Sand People!2/23/2010 9:11:55 am PST

re: #620 windsagio

They’re only giving like 20 cents worth of food anyways :p

In retail especially (I admit it breaks down a fair deal when we transfer the discussion to rent) the price-points are very carefully analyzed and are part of the sale plan. If it were worth the money they might mess with their portions, but I’d bet in the McDonalds example, they wouldn’t bother.

I’m telling you as an entrepreneur, you do all you can to make as much as you can with as little as you can get away with. If it’s a good or service that the market wants at the point you have to offer, fantastic. If not, you adjust accordingly, then when the government comes into play it can throw a wrench into everything. The market might not like the product you offer at the point that you HAVE to charge due to fees and taxes and remain just breaking even. So what happens next? You close shop or figure out a way to come up with a different method, which costs money, and at times venture capital, angel investors, etc, bank loans in this market, aren’t readily available. So when the government wonders why higher taxes are actually generating less revenue…go figure. They are business idiots (for the most part) who have little actual business experience.

People respond to incentives.