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A price of an item is rarely if ever based on its raw material cost. With restaurant food even more. You pay for location, rent, heating, staffing etc etc etc
by tnolet 7y ago
A price of an item is rarely if ever based on its raw material cost. With restaurant food even more. You pay for location, rent, heating, staffing etc etc etc
- draw_down 7y agoNot really rebutting GP’s point.
- ravenstine 7y agoMore importantly, the price of an item comes down to how much people are _willing to pay for it_. Price does have to cover overhead(unless you're WeWork and care more about revenue than profit), but a comparable competing product can have the same overhead and charge way more if its audience is willing to pay more or it.