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In article >,
Endangered Bucket Farmer > wrote: >In article >, says... >> In article >, >> Antipodean Bucket Farmer > wrote: >> >In article >, >> says... >> >> In article > , >> >> Mark Anderson > wrote: >> >> >In article says... >> >> >> I'm glad we agree. Of course at the same time completely get rid of >> >> >> corporate taxes, since corporate taxes really are consumer taxes since >> >> >> the tax burden is just built into the price of goods. >> >> > >> >> >This is a myth propagated by people who don't understand economics. If >> >> >corporate taxes were eliminated, Starbucks isn't going to lower the price >> >> >of its coffee. The reason it charges $4 for a cup of coffee is that they >> >> >have determined the consumer is willing to pay that price. If their >> >> >market gurus found that the consumer was willing to pay $5 for a cup of >> >> >coffee with an acceptable drop off in demand, Starbucks will charge $5, >> >> >corporate tax or no corporate tax. >> >> >> >> This is a myth propagated by people who have a little knowledge about >> >> economics. The model where cost has no impact on price only works in >> >> a monopoly world. >> > >> > >> >Try studying the subject of "Branding." It is part of >> >advertising/marketing. >> > >> >For example, Branding is why the tin of beans with the >> >recognisable name and pretty picture on the label costs >> >more than the generic "no-name" tin of beans. Even if >> >the actual product inside is identical (sometimes even >> >made in the same factory on the same line.) >> >> You've never tried the no-name tins, have you? > > >Is that really a question, or just an ASSumption? > >I have eaten plenty of generic, no-name, store-brand, >off-brand, food. Recently. In fact, I have some in >the cupboard right now. > >When I go to a supermarket, my brand choices are solely >based upon price. Been doing it for over a decade. > >Never bothered me in the least. OK, so you are apparently unable to sense differences in taste and texture. Good for your wallet. >> Sometimes, the no-name >> products are just as good. Often, they simply aren't. The advantage >> to the consumer of the brand is one of consistency. > >Like the consistent 50-80% (or more) higher cost? Obviously not. >Besides, for high-quality (better than supermarket), >low-dollar (compensated by my work, discipline, and >attitude), vegetables, I go to my personal organic >vegetable garden. Vegetables are rarely sold by brand anyway, so that's a particularly bad example. >> >Starbucks IS a quasi-monopoly, since they are the only >> >ones who sell *Starbucks_Brand* coffee, which may be >> >PERCEIVED as special, and worth a $$$ premium. >> >> Substitute products abound within their market; > > >Branding is about *emotions* and social stereotypes. >It is actually a strategy to *avoid* a rational apples- >to-apples comparison. Like I said: look it up, and do >some reading. But it doesn't work perfectly. Despite all this manipulation, people DO make comparisons. Even some of the strongest cases of brand loyalty, such as cola, haven't managed to create a monopoly-like situation, as can be seen by the fact that Pepsi and Coke continue to compete, and compete on price at that. >> a monopoly on selling a particular brand is _not_ at all >> the same as having a monopoly on the product. Brand loyalty >> allows them to maintain some premium, not >> total insulation from competition. > >That is right. And "some" premium may be enough for >profitability. By playing on the emotions of the >marketing-ad-targets/consumers. So? Them having "some premium" doesn't at all address the claim that price is insensitive to cost. -- There's no such thing as a free lunch, but certain accounting practices can result in a fully-depreciated one. |
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