Quote:
Originally Posted by murg
A $50,000 salary, split over how many devices can increase the cost of the devices above what makes them a bargain.
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I don't see how the smartest price to charge is affected by the salaries. If they already are charging an optimum price, and raise it to cover higher salaries, their volume will go down and they'll be worse off.
There's no rule saying they can't charge way more than cost. Apple and Microsoft have that happy (for them) ability. And there's no rule you can't sell below cost:
http://www.marketwatch.com/story/13-...ney-2014-11-17
True, you can't sell below cost forever. If supply and demand forces that on you, here's what commonly happens:
http://wolfstreet.com/2015/04/16/ban...-not-just-oil/
If you ask a corporate spokesperson why they raised prices, they are going to say it's because their costs went up. That's because blaming costs is socially acceptable, while charging as much you can, isn't. And if the costs also went up for their direct competitors selling extremely similar products -- say, gasoline -- it might even be true. But I don't buy it for items that strive to stand out from the crowd, like books and gadgets.