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Old 05-07-2009, 04:19 PM   #26
Slow_hand
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Slow_hand has a complete set of Star Wars action figures.Slow_hand has a complete set of Star Wars action figures.Slow_hand has a complete set of Star Wars action figures.Slow_hand has a complete set of Star Wars action figures.
 
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Join Date: Jul 2008
Location: Baltimore
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Those cost of materials are so meaningless, for one thing there is no cost of anything else, like the overhead just to keep a company running, which includes the lawyers, the IT guys, the accountants, the administrative staff, designers. Also the cost of making the product has almost no relationship to the cost of sale. It's how much people are willing to pay for a thing or service. When the Star Trek was first made available on consumer video, it sold by the episode, and people bought them. When the seasons became available on DVD, they were priced many times higher than other shows, but sold like hotcakes. Look how much people were willing to pay for Wii's.

If a business sets a price based only or even mostly on it's own costs, it's probably setting the wrong price.
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