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To: Your Nightmare

Exactly. That's how the free market works! Who sells items at the same price!?!!? It's not like that. Prices differ everywhere. Cost is made up in different items. Ever read the sale papers?

Ever purchased a $12 asprin at a hospital? What makes up the cost of that item?

Stores have to make a profit. If you drop the price of Diet Coke, it has to go somewhere else. So increase the price of peanut butter cups. So you may not sell as many Reese's Peanut Butter Cups as the next guy, but your margin on the cups is higher. If you sell half as many cups as you do diet cokes, it'a a wash.

It's a game of balance. In your last reply, it comes down to more than just prices.. but location and convenience... thus the name of the stores. Competetive commmerce, you have to love it!


159 posted on 05/05/2006 9:27:20 PM PDT by Imgr8t
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To: Imgr8t
It's a game of balance. In your last reply, it comes down to more than just prices.. but location and convenience... thus the name of the stores.
So you don't want to play the game. Ok. Does anyone else?

On your point. If I'm selling more Diet Cokes because of location and convenience, why would I drop my price? Or if my competitor is selling more because of their location and convenience, why would I drop my price?

We can still play the game if you want. Let's say you have better location and convenience (and what ever else goes into having more sales) and are selling 60 Diet Cokes at a dollar to my 40. You are making $12 and I am making $8. I lower my price to $0.99 and now I have 45 sales and I am making $8.55 ($0.19 x 45) and you have 55 sales and are making $11. I'm up $0.55 and you are down $1.

What's your selling price?
162 posted on 05/05/2006 9:43:38 PM PDT by Your Nightmare
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To: Imgr8t
Stores have to make a profit.
I guess we should all quit our jobs and open up stores.
176 posted on 05/05/2006 10:56:54 PM PDT by Your Nightmare
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