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To: Your Nightmare
And why, exactly, would someone buy from you if your price was higher than the market price?

Variations in quality, consumer preference, myriad reasons.

Why do you think all prices of a good are not the same? Milk can go for $3.25 or $3.89 or $2.99.

It is preposterous for you to assert that only one price will sell.

704 posted on 11/15/2005 8:28:21 AM PST by Principled
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To: Principled
Variations in quality, consumer preference, myriad reasons.
So you aren't selling the same product. The question then becomes whether the consumer is willing to pay the premium you are requesting for the variation in quality and their preference. The amount of income taxes you pay doesn't sway them in the least. The price is still driven by the market.


Why do you think all prices of a good are not the same? Milk can go for $3.25 or $3.89 or $2.99.
You usually won't find milk at this wide a price range at the same store or even the same general market. Some similar products will be sold for higher prices because the business has investing in marketing campaigns to differentiate their product from others (that's why people buy name brands over generics). The consumer perceives a premium and is willing to pay extra for it. But still - THIS IS A MARKET DRIVEN PRICE. If the business tries to sell the differentiated product for more than the market it will bear - they won't sell and they will be forced to reduce their price. The income taxes the business is paying doesn't mean squat to the consumer.
721 posted on 11/15/2005 11:03:28 AM PST by Your Nightmare
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