Re: International Pricing Policy

Wayne Niddery [TeamB] wrote:

If Company X is able to produce widgets for $5 and demand allows them
to charge an optimum price of $10 (above which sales start to fall
off), then you come along and build an exact equivalent widget, but
it costs you $20 to manufacture, do you think you will sell any at
$20+ (assuming the customer is aware of Company X's brand)? You would
have to do other things to convince anyone it is worth that extra
money over brand x, your production costs are completely irrelevant
to any potential buyer.

You are totally missing my point.

My objection was with Nick's original statement.

If he had said that the cost had no relation to the price the customer
is prepared to pay, then I agree entirely.

However, I do not believe that the price a manufacturer is prepared to
set has no relation to the costs.

Costs *have* to be considered to determine whether it is worth
manaufacturing or not.

--
Mike
.

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