Comment by wavewrangler
5 hours ago
What do you mean? I don’t recall ever asking manufacturers if I could trade my privacy for a discount. I don’t remember that at all…people will pay whatever the price is, if inflation hasn’t taught that to you, then I’m not sure what to tell you. The other thing inflation showed us, is that manufacturers will absolutely put a price on what they feel is “decent profit.” Cmon dude. Do you not remember how much we paid for eggs?! Which, i think it was found later to be that the manufacturers “manufactured,” “scam-bled eggs.”
You know, I’ve been thinking, I don’t think im being paid enough! Im giving myself a raise. We can do that, right?!
>I don't recall asking
Companies can develop new products without your advice. In fact consumers often don't know what they want.
>people will pay whatever the price is
Then why do businesses have sales? If prices don't matter why would businesses choose to make less money per sale?
> Companies can develop new products without your advice. In fact consumers often don't know what they want.
I'd urge reading up on revealed preference and product discovery. It cuts both ways in that, sure, a company can offer a product on the market that no buyer asked for and have it sell well, but then, the media can expose some rather unsavory facts about that same product and subsequently (consequently?) have it not sell.
> Then why do businesses have sales? If prices don't matter why would businesses choose to make less money per sale?
It's worth picking this apart. Prices not mattering is usually expressed in economics-ese as price-inelastic demand, and that's usually not what's happening. Sales are a mechanism for drumming up demand for a product, with the hope that the additional volume will compensate for the marginally lower margin.
>I'd urge reading up on revealed preference and product discovery
I'm not sure what point you are contesting.
>It's worth picking this apart.
They were rhetorical questions.
>price-inelastic demand
With this you could argue that the absolute price does not matter, but the relative price between products that can substitute each other do. In this comment chain it is being argued that this kind of device wins on relative price.
>Sales are a mechanism for drumming up demand for a product, with the hope that the additional volume will compensate for the marginally lower margin.
It is for increasing demand, but making a higher rate of profit on the item is not the main reason. Things like being able to clear inventory, or to learn about what the current demand curve looks like (to know if prices should be adjusted) are more common purposes.