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But you realize the reason expensive things are expensive is because there are enough people willing to pay the premium. If demand for premium products diminish
by double0jimb0 7y ago
But you realize the reason expensive things are expensive is because there are enough people willing to pay the premium. If demand for premium products diminishes, premium product producers can either lower prices to meet demand at lower price point, or lower production to new lower levels of demand.
Either way there is a present glut of expensive things without enough demand, so existing oversupply is liquidated. So expensive things get less expensive.
- captainbland 7y ago> If demand for premium products diminishes, This is the crucial part, there is no reason to believe this is happening. There is not a 'glut' of expensive things as many are forced to buy the expensive alternative when their preferred choice is gone, and regular consumers of the premium brands still buy them. They just sell out less fast.
- double0jimb0 7y agoThe economy is 75% of what it was 3 weeks ago. Numerous industries have laid of 50%+ of their laborers. I’m going to wager there is less demand for premium products.
- captainbland 7y agoPerhaps we are each talking too generally and need a bit more specificity. If we're talking about premium products in the sense of iPhones, new cars, video games and other kinds of irregular purchases like that then I expect you're right at least in the short term. But the relevant point of discussion here is what you tend to need from a supermarket in day-to-day household consumables and their respective economy/premium products which contribute to a household's regular expenditures. In the household consumables case, the premium products are definitely still selling.