Online Storefronts - Absurdly annoying

economies of scale

When it comes mass production of anything, large companies will always have the benefit of fabricating, and thus selling products, at a lower per unit cost. This is referred to as economies of scale and basically means that the more you buy and produce, the smaller the manufacturer's cost per finished item. As such, some companies are able to market their wares at lower prices and still allow for a potentially larger overall profit margin. I agree that "fair market value" is a bit of a misnomer in that true market value would be determined through auction only, whereas our market prices are pre-determined through manufacturing cost, wholesale and retail profit margins. I also agree that it is important for product price ranges to be maintained to allow for the continued operation of those who produce our goods and services. This allows us a greater variety of products from which to choose, but means we will be paying for them, if we are able. The structure of our consumer economy is based on prices set through profit margins along the production process and, I don't think, could function any other way. The unfortunate reality is that we will continue to pay tens of thousands of dollars for cars when it costs Acura, or any other automotive manufacturer, significantly less than that to make each car, because each operator along the way has to get his share. I was passed the other day, while driving my Honda, by a new SLR. Did it cost Mercedes 455,000.00 to make that car? I doubt it. Did someone pay that much? You bet they did. In the world of business and consumer consumption, that makes it fair. There is more I would like to say, but I am out of time.

My quick thoughts on two other topics:

1. The "Wanted/For Sale" should be split into custom cues and cases, and production cues and cases, to better target the respective market segments.

2. The quality of a member's contributions, not the quantity, should be considered most before criticizing whether or not they should be listing items for sale.

Ryan
 
Back
Top