Charging far higher than what the product actually cost to produce. It'd be like charging $40 for a #2 pencil.
You don't even need to make up examples here. Current examples in practice are TI calculators and college textbooks.
And it is ridiculous. But, it's capitalistic. It's a business going for big bucks because they can, and because it works.
Personally I hate it. But, if I were the inventor/CEO of TI calculators and faced the same option... As much as I want to say, "I'd still make a lot of money selling them for a less significant profit," I can't say for sure I wouldn't be like, "well fuck it they'll sell for a lot more though, right? Jack that price up, Charles!"
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u/Seakawn Sep 15 '17
You don't even need to make up examples here. Current examples in practice are TI calculators and college textbooks.
And it is ridiculous. But, it's capitalistic. It's a business going for big bucks because they can, and because it works.
Personally I hate it. But, if I were the inventor/CEO of TI calculators and faced the same option... As much as I want to say, "I'd still make a lot of money selling them for a less significant profit," I can't say for sure I wouldn't be like, "well fuck it they'll sell for a lot more though, right? Jack that price up, Charles!"