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A product's price is mostly a function of demand, not the cost of its raw materials.
by ams6110 10y ago
A product's price is mostly a function of demand, not the cost of its raw materials.
- twelvechairs 10y agoWell, demand is only there if they can differentiate from the cheaper options.
- coldtea 10y agoYou'd be surprised. Lots of the higher priced products have only marginal (if any) differentiation from cheaper options, sometimes only the brand being it. That's how you can have $400 plastic "brand name" glasses and $30 "non brand name" glasses that are made in the same chinese factory, with the same plastic materials and quality control, and both owned by the same parent company (e.g. Luxottica). And let's not get into clothing and wine.