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.
I could be - consumer perception alone can allow differing prices. So the question remains, why a variation in price for the same product?
You usually won't find milk at this wide a price range at the same store or even the same general market.
You're wrong. I see it every time I go to Kroger.
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.
Right. Until they can't reduce it anymore - at what point will that be?????? When their revenues do not exceed their COSTS!
HELLO!!!?????