Quote:
Originally Posted by leebase
Well, it would be hard to stay in business selling below what it costs to make a product. However, pricing is about demand, not cost to manufacture.
Have a hard time believing that? How else can you explain the cost of Coke vs. generic Cola? The cost of bottled WATER. It's WATER folks.
Lee
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Actually it is a combination. Anything sold needs to cover the cost of research, design, prototyping, manufacturing, distribution, marketing, overhead, and profit. In the case of a book, the research, design, and part of prototyping is done by the author. Later prototyping includes editing.
Profit is dependent on many factors, but there is a minimum profit level that a seller can continue to operate on. Above that is gravy, but that gravy is what pays the big shots and also provides good nubmers for investors to invest in your company.
And yes, some products will sell above the minimum level due to various factors. And those are the companies you want to own stock in.
