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I don’t think that story illustrates the point you think it does. Prices aren’t based on cost, they’re based on perceived value on the part of the buyer, and th
by jdlshore 1y ago
I don’t think that story illustrates the point you think it does. Prices aren’t based on cost, they’re based on perceived value on the part of the buyer, and the marketing and brand recognition behind Fritos raises its perceived value much higher than the generic brand.
To put it another way: all generic brands are cheaper than their name-brand counterparts, and that fact has nothing to do with debt or cost structures.
- lotsofpulp 1y agoThe lower bound of a price is the cost (or ability and willingness of a seller to sell), the higher bound of a price is the ability and willingness of a buyer to pay.