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Do you all not think that companies should charge prices that maximize their profits (in the long run)? Typically, companies are trying to predict the price elasticity curve that yields the most profit via # units sold * price. That said, if you overcharge, that could be bad for the brand, turning off users in the short and longer term. Another product like this for me is the Manta Sleep Pro Mask. It’s $80, but the best I’ve found, so I buy it anyways. I’m mildly annoyed and also feel like they’re taking advantage of me on price and will switch as soon as there’s an alternative at least as good for less…but when that happens, they’ll probably lower their price, which is what typically happens as sectors and products mature due to competition. Profit maximization curves are interesting, and I think explain things like how convenience stores exist with much lower volume compared to grocery stores. Eg XYZ food costs 90 cents and the grocery store sells it for $1, yielding profit of 10% whereas a convenience store sells it for $1.50, just a 50% increase in price for the consumer (for the convenience), but the profit is 6x that for the grocery store, so they only need to sell approx 1/6 to make the same profit. In the case of the author clock. If COGS is $50, profit is $150ish. If they sold for $100, they’d have to sell 3x as many to make the same profit. Given that it’s a niche product for readers (smaller population and typically more educated and wealthier), I think they care less about the price. Doesn’t seem that unreasonable to me. |
But I’m coming to the conclusion —more powerfully in the recent few years— that not only is this an issue that should be debated, but the pursuit of profit above all else is responsible to a greater or lesser degree for many of the ills that we see and suffer in our societies. And from my European perspective, I believe that it is responsible for America (its culture, way of life, the ‘American way’) fracturing and falling apart.