Originally Posted by r-dub
One of the main problems is the assumption folks make about pricing methods. Too many people assume (incorrectly) that things are priced via a 'Cost Plus' model, where a seller figures out their costs and adds a little margin for running the business, shrinkage, 'profit', etc. In reality, most businesses in most industries price off of a 'Value' method. They charge the price that the market has determined is 'appropriate.' They charge $100 for double straps because people are willing to pay $100 for double straps. It's such a niche market that the cost of tooling, initial production runs, advertising, distribution, etc could never be recouped by another producer in the market even if they could reach a margin cost of $5 per strap.
+1...the only way prices for most items on the market will come down is for people to stop paying those prices. for example, this is where i first realized this: in boise, i tried connecting my laptop to a wireless connection, and it told me i had to pay and subscribe. now, save the arguments about whether that's a good idea or fair or whatever. the thing i realized is that while it seemed ludicrous--i got a laptop specifically to save internet bills and so do a lot of people--it seemed like a bad idea, but if people were willing to pay for it, then the company was going to charge. i'm not sure if it failed, i'm sure it did, but that's when i realized that however stupid and overpriced, there doesn't have to be a reason for high price other than that a company can charge that price and get away with it because people pay the price.
as far as complaining about the price of ramen, i do think it's funny, but not shocking. i mean, sure, it costs a dime, but still...it costs you and me a dime, and the company a miniscule fraction of that. and then it's food. so it becomes principle. companies have people over a barrel with food. who's ready to stop eating? not me. so companies don't have to justify prices with cost, research and development (i think sloppy robot was giving the companies too much benefit of the doubt. they're corporations, for ****'s sake. they **** people in the ass for ****s and giggles) or packaging or whatever. they simply don't have to justify it. they just have to say "do you feel like eating? then pay our prices, inflated or not." the grocery store is the best example of the worst pitfalls of capitalism. be glad you'll be perfectly okay if you don't get those double toe straps.
edit: i guess that last bit got a little ot. the discussion of business and food got me thinking...and while not much of a socialist anymore, i sure do hate capitalism governing who gets to eat and who doesn't. so...soapbox time. sorry.