- Capitalism and Alternatives -

why lower your price to undercut the competition

In Reply to: For the LAST time...(better) posted by Stoller on November 19, 1999 at 14:42:22:

: Then the manufacturer determines how many cranks are willing to overpay.

: Great.

: Now the manufacturer's competition sells them for $90---which the crank, who's getting low on cash, readily purchases.

Don: This indicates that the candy bars were not selling well enough at $100. After all, why lower your price to undercut the competition if enough cranks are willing to pay $100? An insufficient number of cranks willing to pay, I guess. In other words, insufficient consumer desire.

: It stops at the point where production costs leave NOTHING for profit.

: No matter what ANY CUSTOMER thinks.

Don: So you think they will maintain that price if NO ONE wants the product?

: Get serious you guys.

Follow Ups:

• Again Stoller November 24 1999 (12)
  • No price war DonS USA November 24 1999 (11)
    • Yaaawn...(better) Stoller November 24 1999 (9)
      • if demand is sufficiently high, there is no point in engaging in a price war. DonS USA November 25 1999 (8)
        • ??? Stoller November 26 1999 (7)
          • competition only comes into play if demand is insufficient for the needs of all the producers. DonS USA November 30 1999 (6)
            • 'Demand' - wih correct links Stoller November 30 1999 (4)
              • I disagree. DonS USA December 01 1999 (3)
                • That's what this whole forum is about Stoller December 01 1999 (2)
                  • Addition Stoller December 02 1999 (0)
                  • most 'capitalists' are pragmatic people who are not much interested in free market theory. DonS USA December 02 1999 (0)
            • 'Demand' Stoller November 30 1999 (0)
    • Yaaawn... Stoller November 24 1999 (0)