4 ms·

Maximizing profit is not always the best way to go. Especially in the realm of luxury items. Their elasticity is counter-intuitive with regards to the general i

Maximizing profit is not always the best way to go. Especially in the realm of luxury items. Their elasticity is counter-intuitive with regards to the general idea of supply and demand. That's why you have waiting lists in many luxury industries (think about Tesla too). It's part of the trade.

djrogers 6y ago
> Maximizing profit is not always the best way to go. My comment was not advocating for 'maximizing profit' - secondary markets do not make for happy customers, nor do excessively long wait times. Yes - a waiting list can be part of a luxury good, but there's probably an optimization of customer happiness somewhere shorter than a 2 year wait list. A wait list that excessive can spur a secondary market, which makes the wit list even longer, which makes customers and potential customers that much less happy. And the secondary market only enriches the middle-man, while doing nothing for your loyal fans and customers.
KorematsuFred 6y ago
> Especially in the realm of luxury items. Especially for luxury items, it makes sense to keep the price pretty high and supply limited (like Ferrari). I am from India and $150 is pretty low for the market he is targetting. For example I routinely purchases Moleskin notebooks for around $30 in India and this was not even a rare item. A doctor, a judge can easily afford to pay $500 for these pens.
- chevill 6y ago
  >For example I routinely purchases Moleskin notebooks for around $30 in India Do you use fountain pens? Moleskin notebooks are amongst the worst paper I have ever used for a fountain pen. Even the finest points I have bleed an absurd amount.
  - KorematsuFred 6y ago
    Oh no. Moleskins are pretty bad for fountain pens. I use rollerball jel pens mostly.