FlashBazbo

I didn't address that topic at all. It's not relevant. Why not? Because the retail price is determined by what a buyer is willing to pay at the retail transaction. Contrary to what the news media thinks, a retailer cannot automatically pass along every added cost that comes into the supply chain. If the total cost of the product to the LBS (counting middleman, taxes, utilities, rent) is higher than the price his customer is willing to pay, the LBS is out of luck. If he sells it, he's going to sell it at a loss. Money out of his pocket for the privilege of selling the product. Customers don't care what additional costs their LBS has. They just know what the LBS is asking for the product. If the customer thinks it's a reasonable price, they buy it. If the customer thinks it's too high, they don't. They buy something else or somewhere else. But it's the retail interaction that determines the retail price.


Individual customers don't determine the U.S. price of SRAM components. But customers, as a group, absolutely determine that price. If the price is too high, they don't buy. If they don't buy, SRAM makes sure the retail price drops until they do.