Stuff costs too damn much

[Boozy]

I think you'd be surprised at how razor thin the profit margin is on things you buy.

When a business owner is making a lot of money, it is almost certainly because he has sold millions of his widget and personally made only five or ten cents on each. If his profit margin were $10 per widget, it would take no time at all for a competitor to undercut his price. Competitor A would make $5 per widget in profit, then Competitor C would undercut him and make $2.50... it does not take long in a free market economy for profit margins to get cut to nearly zero.

Yes, there is a problem in these economies with wealth disparity, but it's not because consumers are getting overcharged.

[DrFaroohk]

I think you'd be surprised at how razor thin the profit margin is on things you buy.

It's not as razor thin as people would have us believe, as I was saying earlier. As with my cofee example, they'd have you believe that they lose money on each cup of coffee. They charge 1.50 - 2.00 for a cup, and it costs like 2.00 to make, so they lose. Except they don't, because all those prices they make up are grossly inflated. It really doesn't cost .75 for the packet of coffee to brew the pot. It doesn't cost a dollar for each paper cup. I actually did the math once and it's like a quarter for a cup of coffee.

Or you're paying for a name. Something I hate even more. That extra cost you pay is just because it says Nike or Microsoft on it. It has nothing whatsoever to do with the product, it's just...it says this name, it costs more. That shit pisses me off too.

[AdminAssistant]

The profit margin is rather thin on a lot of things, but not on beverages in general. I mean, a regular soft drink costs the restaurant something like 10 cents. In one of his books, Anthony Bourdain talks about how the economy was causing fine dining restaurants to fail because the rich weren't dropping $2,000/meal on wine like they used to. Those high profit margins on drinks allow the restaurants to survive since the profit margin on food is so thin.

[LexiaFira]

i'm sorry Dr...but you are starting to sound like my grandmother. stuff cost too much, these kids are too damn spoiled and blargh blargh.
don't get me wrong i am not making fun of you or calling you out and i do understand your frustrations but the way you say things it just reminds me of her in her declining years.

[protege]

My grandmother would say the same thing. Every time I go over there, she whines about how 'expensive' things are...and how she "can't afford" things. I don't mind someone clipping coupons, or shopping around for the best deal. But, no matter what it is, she "can't afford it." She gets my grandfather's pension, social security, and income from some investments, so it's not like there isn't money coming in. Also, the "fixed income" argument doesn't fly with me either. Last time I checked, we're *all* on fixed incomes--there's only so much money coming in

Also, why should a company have to drop their price because some people can't afford their products? I mean, would I like to tool around in a Ferrari? Of course I would. However, the insurance and repair costs would likely drown me...never mind the cost of buying such a vehicle! Do I sit around and complain about the high cost? Nope.

Instead, I live within my means...and tool around in a five-year-old Corolla. It's easier on the pocketbook, and fits my needs nicely. It's paid for, and gets me where I need to go. If I need to play "someone who drives a sports car" an old MG sorts that purpose nicely. That car was a wreck when I got it. Fun to drive, and much less costly than a Ferrari. Plus, nobody makes jokes about how I'm "compensating" for something

[jackfaire]

I know they claim it's to make up for all the research and clinical trials and such, but damn, this is stuff people need to be healthy.

Yes and if they couldn't make back the money they spent on research and clinical trials then no one would get the stuff they need to be healthy because researchers don't work free and if those companies can't pay them they will go work for a company that wants to make a new perfume.

It's not necessarily just about profit but about getting back all of the money they paid a bunch of people to invent something.

In the development process your essentially pouring in a lot of money with no guarentee you will ever get it back. The researchers would be unwilling or unable to just wait and get paid after the product is making money.