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To: Hemingway's Ghost
I simply can't envision retail prices dropping on the order of 20% across the board due to nothing other than manufacturer or producer benevolence.

Me either! Price stability will not be due to anyone's benevolence - it will be due to a desire to survive.

Why doesn't a company go out today and simply increase prices? Why not?

90 posted on 08/27/2004 8:27:58 AM PDT by Principled
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To: Principled
Why doesn't a company go out today and simply increase prices? Why not?
Why does any company try to increase their profit margin? Because there in it for the profit. How many times have you heard a company tout "costs are down, profits are up"?
95 posted on 08/27/2004 8:32:23 AM PDT by Your Nightmare
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To: Principled
Why doesn't a company go out today and simply increase prices? Why not?

You don't need to Socratic Method me---I know what you're driving at. If an average car costs $XX,XXX, and consumers accept that and are used to paying that price, I don't think there's a way in hell every car manufacturer out there is going to reduce its retail price to .8 x $XX,XXX merely because it no longer has to pay "hidden" taxes during production. You really think one car manufacturer will break ranks and discount their product that much out of good faith? If so, you have more faith in a businessman's "morality" than I do.

105 posted on 08/27/2004 8:39:28 AM PDT by Hemingway's Ghost (Spirit of '75)
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