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The Real Marty

Member Since 24 Aug 2003
Offline Last Active Yesterday, 11:49 AM
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Posts I've Made

In Topic: Chris Clemons a no-show

Yesterday, 11:52 AM

Reading Bradley's comments in the T-U, he is clearly very concerned about this.  I am wondering what's going on here.  What are these "personal issues" that are keeping him from showing up at training camp?  

 

The guy is 34 years old, maybe he doesn't want to practice in the heat.  

 

If he can't get to work, I guess it's time to fire the guy.   Seriously.   He's 34.   We might need to move on. 


In Topic: This Is Great, $15 an hour leeches

29 July 2015 - 01:35 PM

Because the market will or won't allow it. You say businesses raise prices when they figure out they can charge that much. It's much more complicated. Say business A charges 6 bucks for a product. They learn that their two competitors charge 9 for it. They could say well they charge that much so I can too. Or they may keep it at six to undercut the market hoping more volume make up for it. Or they may raise it to ten. But then when they raise the price they may lose customers who went there specifically for the savings. So it's not as simple as that. I am not saying that all businesses are honest or fair. But a decent amount by are just trying to make a living, not gouge everyone.

 

Yes, pricing can be complicated, but I am taking issue with the idea that prices are set according to cost.  Nothing could be further from the truth.   Costs may determine how much profit the business can make, and costs can determine whether that business will even exist in the near future, but cost does not determine the price of the products that business sells.  Pricing is done to maximize revenue, or to undercut the competition, or to increase the customer base, but the price you set for the product is not set by how much the product cost you.   Because none of your customers care how much the product you are selling to them cost you.   They only care how much they want it and how much they are willing to pay for it.  Period.  If you tell them the lasagna is priced at $25 because it cost you $20, then they will say, that's interesting but I don't want the lasagna enough to pay $25 for it, regardless of what it cost you.  

 

Prices are set by supply and demand.  How much money do I have, and how much to I want your product.   I don't care how much it cost you.  I only care about what it's worth to me.   And if you find out that I am willing to pay $25 for your lasagna, then you might raise your price to $25.   Because that's all that matters: how much is the customer willing to pay. 


In Topic: Who's Currently Number One In Your Clubhouse?

29 July 2015 - 01:11 PM

I am leaning towards Jeb Bush, but if he starts advocating more military adventures in the middle east, then I will look elsewhere. 


In Topic: This Is Great, $15 an hour leeches

29 July 2015 - 01:08 PM

Most restaurants operate on a <2% margin. Changes to costs (produce in particular, meat more so right now) have an immediate impact on their viability and pricing.

 

Prices are set by supply and demand.   If a business can raise its price, it will and should.   Imagine if you were selling widgets at $12 per widget.   But you figured out you could price them at $20.   What do you do?   Your customers don't care how much those widgets cost you.   All they care about is how much you are going to charge them.  

 

Now imagine you go to your customers and tell them you are raising the price of your widgets because your costs have gone up.   Do your customers really care that your costs have gone up?   No.   All they care about is how much money they have to spend, and how much do they want that widget.  

 

This is why every time a business tells you it is raising its prices because its costs have gone up, it is conning you.  They are raising their prices because they figured out that you are willing to pay more.  They are just giving you an excuse.  "My costs have gone up." 

 

If a restaurant decides to raise their prices because their costs have gone up, and they successfully raise their prices, well why did they wait until their costs had gone up?  Why didn't they raise their prices a long time ago?  Obviously, the public was willing to pay a higher price.  And obviously, the diners don't care about the fact that the restaurant is going through some sort of cost squeeze.   All they care about is how good is the food, and how much are they willing to pay to eat there. 


In Topic: This Is Great, $15 an hour leeches

28 July 2015 - 07:49 AM

Just to put my opinion on the record, I believe that raising the minimum wage reduces the number of minimum wage jobs.   If you raise the price of something, you usually reduce the demand for it.   So raising the price of a fry cook will reduce the demand for fry cooks.   Minimum wages are counter-productive.   They actually hurt the people they purport to help.