For all intents and purposes, you have communism, and the USA has capitalism.
One thing about growing up in communism was that Political Economy 101 was not an elective. We all hated it back then. Now I'm constantly reminded that we were wrong.
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For all intents and purposes, you have communism, and the USA has capitalism.
So, if you buy a car for 50K and I buy exactly the same car, at exactly the same shop for 48K, you are not being ripped off? Interesting.
So, if you buy a car for 50K and I buy exactly the same car, at exactly the same shop for 48K, you are not being ripped off? Interesting.
profit isn't just margin, it is also dollars, if a lower margin but larger sale, and/or more turns gives you more dollars...wellThis all went sideways from my comment on Cuzza's post.
I never said that small shop sell their stuff at Costco prices, or they are ripping you off.
Cuzza's post was about shop that would match price if you came in and tell them that some other shop is offering better price on same item they sell. If you don't tell, then you pay higher price. That I consider to be a ripoff.
Tobin says his price is his cost+fair profit, and I totally agree with that. But, that means that some other buyer should not get better price than I did, because all his cost + fair profit remains the same. BTW, I never say Tobin is doing this.
Here's your problem. Why would a shop do this? Why would anyone want to do this? But, it seems you're OK with shops getting different prices but not the consumer? Why? Caveat emptor. If you've done your homework, you should benefit from But c
For thirty years, I worked in the automotive field and many of those years, I made my living off of a flat rate manual. Replacing a muffler bearing might call for 2.3 hours. That's predicated on an average mechanic using hand tools. So, I invested in a lot of tools, including fast air tools. Now the job only takes me a half hour, because I made such an investment. Should I charge only a half hour? That's not a good return on my investment, is it? Should I give my loyal customers a break? I might. What if they're buying other services from me at the same time? Sure. There's a point at which I've got to protect my investment. That's the way the free enterprise works. I like it like that.
I agree on that.profit isn't just margin, it is also dollars, if a lower margin but larger sale, and/or more turns gives you more dollars...well
I'm wondering if some of these folks get mad when they go the grocery store and spend $1.29 on a can of green beans and then go back the next week and they are on sale for $.99. Different people pay different prices on everything all the time. From the pack of gum at the checkout counter, all the way up to houses / cars and other major purchases. Prices aren't fixed on anything in the U.S.