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Prices are determined by what they are worth to the customer, not by the cost of goods. That must mean that someone is willing to pay that much for it. (I'm n

• chrisseaton 8y ago
  > Prices are determined by what they are worth to the customer, not by the cost of goods. I know that. I never said anything about costs, so I'm not sure why you're telling me this. > That must mean that someone is willing to pay that much for it. I'm sure that's literally true. But they may be making a mistake and setting the price wrong for what the market could support and to maximise their income.
  • pwg 8y ago
    > But they may be making a mistake and setting the price wrong for what the market could support and to maximise their income. What we here do not know is whether they have already done that calculation and determined, based upon whatever basis they used for estimating, that their maximum income is, in fact, at their present price point.