Re: Re: Re: Re: Re: Re: Re: Expensive Mouthpieces vs. Old Standbys


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Posted by Joe Baker on November 20, 2002 at 08:56:01:

In Reply to: Re: Re: Re: Re: Re: Re: Expensive Mouthpieces vs. Old Standbys posted by Leland on November 19, 2002 at 22:58:20:

Yeah, but that waiting list is a factor in the supply/demand ratio. If the guy increases production enough to surpass demand, regardless of the cost, the price will fall. The waiting list demonstrates both in an economic model and, psychologically, to potential buyers that the demand is higher than the supply, which forces the price up.

As Rick suggested, setting the price for an item is something that is only minimally affected by the cost of production. The ideal price is the highest one that still makes people wait in line.

Joe Baker, who believes that people who cut prices when they don't have to are philanthopists, not businessmen.


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