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echo: coffee_klatsch
to: Cindy Haglund
from: George Pope
date: 2006-04-19 08:21:56
subject: Because they can!

On (19 Apr 06) Cindy Haglund wrote to George Pope...
 CH>  GP> That's a simplistic cynical answer, not considering any of the
 CH> actual
 CH>  GP> facts!
 CH>
 CH> What do you expect? We're suppsed to be kept in the dark and accept
 CH> 'because I said so" answers. This sort of answer has been drilled into
 CH> us since birth. Asking why is ... is....  uh.. Dangerous!

Then I presented you further facts to show that "Because we can" wasn't
the answer. . .

 CH> It's how those in power stay in power... they 'explain' what they do
 CH> by patting you on the head saying, "for your own good'... we know
 CH> best."

And if you accept that answer, you DESERVE that answer; me, however, I
ask for further details and I tenaciously stick to it til I get 'em!'

 CH>  GP> The ones I sell to him don't cost me anything in storage or shop
 CH>  GP> space, so I can knock those costs off and still make my usual
 CH>  GP> profit-per-item
 CH>  GP> amount!
 CH>
 CH>  0

No -- If it takes me 1 hour to make a widget & I feel my time is worth
$10.00/hour and I have to store the item in a warehouse (works out to
$1.00/item in cost, and Ihave to pay rent on a store to sell them (works
out to $4.00/item) then I'd need to sell them to the tourists locally
for $15.00.

The guy from NYC offers to buy 1,000 of these for the $10.00 each I want
to make, so I sell them to him.

He sells them for $12.00 in NYC and makes a quick $2.00 each (times
1,000) -- So it's cheaper in NYC, because I need to charge $15.00 to
make a living.

He's dealing with larger numbers in a shorter period of time, so he can
make his living even though he's only getting $2/item (I got $10/item
for the same items he's getting $2 for)

 CH>  GP> So he already has a large store in NYC, with far more customers
 CH> in one
 CH>  GP> day than I see in a whole year, and they are going to find my
 CH> product
 CH>  GP> so quaint & interesting, so he'll sell them faster than I was --
 CH> so
 CH>  GP> his
 CH>  GP> overhead costs added onto the cost to acquire the item are lower,
 CH> so
 CH>  GP> he can lower the shelf price lower than I can!
 CH>
 CH>  GP> It's not that the local stuff is being jacked up to screw the
 CH> locals,
 CH>  GP> it's that there are sound business reasons why the distant stuff
 CH> is
 CH>  GP> cheaper!
 CH>
 CH>
 CH>  "Sound business reasons " is same thing as saying
'Becasue we can'.
 CH>
 CH>  Doesn't really answer the question...

No it's not the same thing -- You were saying I was charging more
locally (eg. $15.00 vs. the $12.00 he charges) because I can -- it's
because I *HAVE* to, or there wouldn't be a widget in the first place!

Now if he were to charge $15 it'd be because he could, because he
doesn't have the actual sound business expenses I do to arrive at the
$15 price sticker!

My $15.00 price tag was because I *HAVE* to, not because I can!

Because I care,
|<+]::-)  (Cyberpope(the Bishop of ROM!))


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