TIP: Click on subject to list as thread! ANSI
echo: coffee_klatsch
to: Cindy Haglund
from: George Pope
date: 2006-04-18 21:01:18
subject: Because they can!

On (18 Apr 06) Cindy Haglund wrote to ALL...
 CH> Here is the answer to the pressing question of why makers of locally
 CH> made
 CH> products charge more locally than elsewhere.
 CH>
 CH> The reason is this: BECAUSE THEY CAN!

That's a simplistic cynical answer, not considering any of the actual
facts!

Let's say I'm making a product locally to sell locally -- I make them
one at a time and generally sell them one at a time, and can only sell
once to someone, until their first one is used up or wears out, but
let's say someone is in town from back east and sees my product and
wants to sell it in the east.  They offer me a large sum of money to buy
so many thousand units for his exclusive marketing in the east. . .

So he's getting them cheaper than I am (you have to factor in my
overheard costs for my shop in my cost per unit for units I'm selling
here.)

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

So he already has a large store in NYC, with far more customers in one
day than I see in a whole year, and they are going to find my product so
quaint & interesting, so he'll sell them faster than I was -- so his
overhead costs added onto the cost to acquire the item are lower, so he
can lower the shelf price lower than I can!

It's not that the local stuff is being jacked up to screw the locals,
it's that there are sound business reasons why the distant stuff is
cheaper!

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


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