Trx tax… I just don’t get it.

[LowPSI]

Are we in commy china or merica? Markets will do what markets do to settle on a price. If they are priced 'too' high, then they won't sell. If they don't sell, they will either lower the price or eat their product. Simple economics. Your personal preference for what a company should mark something up as has no say.

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Veblen good - Wikipedia

en.m.wikipedia.org

 

[TRXMIKE]

Are we in commy china or merica? Markets will do what markets do to settle on a price. If they are priced 'too' high, then they won't sell. If they don't sell, they will either lower the price or eat their product. Simple economics. Your personal preference for what a company should mark something up as has no say.

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Bubububu bullshit!

 

[RoNiN]

Veblen good - Wikipedia

en.m.wikipedia.org

Well you sir are a festishio… see I can make up words too!!!

 

[Fifty]

Veblen good - Wikipedia

en.m.wikipedia.org

I agree with this to a point. For instance the company Im heling/consulting with.

They are located in oklahoma where its cheap to operate, they are family owned so they dont have to pay corporate overlords, do very little marketing which also reduces their costs... etc etc etc.

Their competition are either corporate owned, have heavy investors, are located in expensive areas, and/or have heavy marketing programs.

Anyways, the products are priced lower than the comparable competition even when using the competitions mark up strategies. And unfortunately the largest battle the sales teams have are trying to educate the customer base that the product is not "alibaba" chinese relabeled imports, nor is it built to an inferior design or material quality.

Ive talked to a couple marketing folks who are friends about this and everyone said "raise your prices and people wont question the quality"

Now, granted, Ive asked the owner to raise the prices and then he could afford to pay me (I do this for fun and he is a friend of mine and all the shock programs I start are to be built with the features I want lol) and he is hesitant because the economy and doesn’t want to take advantage of the customer.

A marketing guy came on board and convinced him we need to raise prices a little to pay for marketing strategy to get the word out and educate the clients etc.

So that will happened in a month or so, but the pricing will still be below the competition…

 

[mtbr]

Bubububu bullshit!

Well articulated point.

 

[shapiroeric]

A lot of it is R&D.....there are a ton of mustangs....the cost to develop something for the TRX could be the same as a Mustang but the potential to sell units is much less because there's a lot less of them. Hence the price has to be higher to make some money.....the market will dictate the price if no one is buying them the price will come down....

 

[TRXMIKE]

Well articulated point.

Thought you would like that!