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It's what recovery looks like.
Put Hillary in. She'll Fixitt.
She's Change, she's Fresh ideas.
She's NOT a continuance of Obama.

The Cricket Chorus is singing at full song.

I'll wait for CNN to tell you.

Paraquat wrote on 11/11/16 at 11:08:00:



he lied,  prices are not controlled by manufacturing, pricing is created by marketing, pricing is often very, very fictional, it might start with manufacturing, but marketing sets it in the end.

justin_o_guy2 wrote on 11/11/16 at 11:29:46:




Explain diamonds, there IS NOT a shortage of diamonds in the world. a Marketing decision was made by the 2 or 3 companies that control the diamond supply to horde diamonds so that they can argue the price should go up, and on top of that, they marketed them as a sign of true love and that inflated the price, and then the marketed them as "investments" and the price goes up

also, show me ONE product where the marketing department doesn't set the price, it's not set by the factory manager.

explain how the iphone only cost Apple $219.80 in components, with manufacturing adding another $5 to the price and it sells for $700

Explain Tesla, they haven't made a profit yet, selling everything at a loss, that's a marketing decision, not manufacturing

your economics 101 is fine, but it's 101, that's the ENTRY level to economics, after that it gets complicated.

we are talking PRICES, price is set by marketing, setting to a price point, to a perceived value, ever hear of mark up, that's how a $5 shirt goes on sale at JC Penny's for $35, then is "marked down" to $25.

prices are fictional, sure the lower the manufacturing costs the better, cause that increases PROFITS, but that may or may not decrease PRICES.

justin_o_guy2 wrote on 11/11/16 at 18:31:57:



it's not my fault you can't follow a conversation. I replied to Paraquat, who was talking about prices. and prices, almost ALL prices are fictional constructions by marketing forces, not just a department, of some kind.  

I made a statement, you cherry picked your examples to try to demonstrate where it failed, I came back cherry picking even MORE examples proving my statement. and notice, I never said you were wrong, I said you were only understanding the complexities of this at an entry level understanding. yes, production does effect price, but it's really become almost a secondary concern for price. if you just want to go that far, fine, but don't try to "educate" me about sh!t after that.

my Diamond example is a direct response to your "over produce a product and the price goes down" diamonds are highly over produced and they are one of the most expensive products out there. Proving that poduction doesn't necessarily effect price the way you'd think it does.

now your example, OIL, is ONE of ONLY A FEW products, where the supply and demand curve and production cost really do, more or less, dictate price, but that's really only true with inelastic products, where the demand is really NOT affected by price,  BUT, even then, there's marketing, Shell gas is more than Valero gas, and Exxon is more than Kroger gas and Chevron gas is more than Walmart/Murphy's gas, so even THERE, there's some marketing cost factored in, the brand names of gas market that they have more cleaners or whatever else in their gas which allows them to JUSTIFY a price increase over generic gas.  And limiting me to YOUR examples, you know, the ones YOU CHERRY picked to prove you point, the exceptions that make the rule, yeah, that's how you want it huh? stuck in your limited reality.

oh, and I'm not just talking about individual marketing departments, marketing in general affects prices overall, Samsung didn't have to have their marketing department set the price of their phones, if they want to compete with Apple, Apple set the price, then Samsung copies it so they can be perceived as an equal product.  

and you're one to talk about "Communicate complete thoughts" some of the time you're too busy mocking something in that "uneducated" spelling crap you use that I can barely decipher what the heck the words you are typing are supposed to be.

and YOU KNOW I'M RIGHT. it's not my fault you don't know what Marketing is, and the advertising is only a SMALL part of marketing.

to give you another chance, look up elastic and inelastic products

Prices are ultimately set by the marketplace (minus a certain level of government intervention sometimes, ie. milk, wheat)

Perfect example from reality: My company just released a new product. This product (we hope) is a game changer in my industry. I was asked by my boss as were other segment manages like myself, given this product's performance features, what would our market's pay. We all came up with a number. We knew our cost, that's manufacturing's contribution. But all that does is give us a starting point. So yes, in step one, marketing sets the price.

However, if this product cannot capture market share, the price will come down to a point acceptable by the market. So in that sense, the market sets the price.

An important note, in some cases,  sales price is a marketing tool itself.  If you've noticed, the Yeti products carry a high price and all the same price regardless of where they are sold, with a few exceptions. This was a marketing decision to help push the idea these Yeti products are unique, exceptional and if you were "somebody " you have to have one. $399 for a cooler seems ridiculous, but they sold a crap load of them.

I've noticed the 12oz tumblers dropped from $29 to $24 recently. That tells me the sales have slowed down, there's a glut of inventory so now they see the technique to entice buyers with price is fading. Prices will begin falling now. The market eventually set the price.

Another note; Yeti could reject the market's definition of the correct selling price. They may pull supply of the product off shelves and simply wait the market out or create a false short supply situation so prices remain high.

One interesting piece of advice I was given in economics is the only real law in economics is supply and demand. Everything else is subject to interpretation.

Lost A and his bro, Lost B, decided to go into business, as they worried Trump might follow through on something, like cutting welfare of able bodies....
So, they gassed up their old studebaker pick-up, drove to El Paso to buy some watermelon grown in Cuidad Juarez......

Him and his bro were savvy, they knew they could take advantage of these ignorant mexican farmers who grow up in poverty and no access to good schools, like they did.
They formulated a plan to confuse the farmer, over pricing of his watermelons.
When the ignorant mexican peasant farmer said he wanted a dollar each, for his melons, they countered with, "We'll give you only 10 bucks, for 10 melons!"
The farmer scratched his head and agreed....
They loaded their truck to the max, took off, and popped a warm beer to celebrate their savvy business skills.

They got back to their neck o' the woods, setting up on a busy intersection to sell their watermelons from the back of the truck.....

They quickly sold out.

They celebrated with the last warm beer of the case before they got down to counting their winnings and devising another enterprise.

They counted their money, $300 hundred dollars.
They were very gleeful, but sadden the beer was gone to celebrate....
Ok, they said, but we need to figger out profit, the savvy duo decided.

They started out with 300 melons, sold them all, but only had $300.00 to show for their effort, and they haven't even factored in gas in the truck yet?

Beerless they pondered until Lost A shared with Lost B, I think I have figgered it out.

We need to buy a bigger truck.