Just an additional point re: the following - call it Marketing 101:
It’s called “market based pricing”, where the price of a good or service is set at a level generally above costs but at a point on the price-demand curve where an “optimal” (defined by the seller) number of customers will pay. Some will pay, others will not. It’s the pricing strategy used by everyone from McDonald’s to Mercedes Benz. And it’s the pricing strategy that, as a rule, provides us with so much choice and variety in the marketplace. Choice is good.
“Cost-based pricing” involves setting the price at cost plus, usually, a fixed profit margin or amount. This is used by very few sellers in a free market*. Regulated industries (some utilities, etc.) often price this way, but pretty much everyone else has realized that it’s a less-than-optimal pricing strategy (yeah, yeah, I know, cite, cite, cite. Too busy/lazy right now.). But this seems to be what PorkChop is advocating The Reader must do - without even the added margin. And if we suckers agree to pay it, we’re fools.
What is a $500 TV? One that cost $500 to make? One that you, PorkChop, feel should be priced at $500? No, it’s one that’s priced at $500 by the seller and valued (what a concept!) at $500 or more by those willing to pay that much for it.
If I pay $50 or $700 for something and I’m happy with what I got for my $50 or $700, then I’ve not been “overcharged”. Others may choose differently.
And I also don’t need to be “rescued” from my decision (implied ignorance) about how stupid my choice (there’s that word again) is. What do you know about what I value? Maybe I value my time over my money. Maybe I value being able to look like a big shot by buying a $700 TV. Maybe the salesperson is my friend and I want him to get the SPF. Who knows? Certainly not you.
I paid my $4.95, I’ll reconsider at $14.95 and choose again. Don’t want to spend it? As so many others have said in this thread, you don’t have to. But please don’t presume to judge those who do.
- reserving the arguement of whether we have a “free market” for another time.