Re: Say NO NO NO to Wal-Mart!!!

The Real Bev wrote:
> So we should want to pay higher prices for what we want to buy?  Not
> likely.
>
> Well, actually it IS likely.  Are all those stories about merchandise
> (cosmetics, mostly) quadrupling in sales volume when prices were doubled
> true or just urban legends?


Don't know if they are true, however they were taught in college 
business classes 35 years ago.  There was one story about GM doubling 
the price of a 1923 Buick and doubling sales because people wanted a 
"luxury" car.

Lots of cosmetics and "botique" items the customer has no clue about the 
actual value of the product, and no way to find out.  Cosmetics are sold 
at whatever the market will bear, and the "cost" is mostly packaging, 
advertising, and retail.  The actual products are often not 
significantly different from the half gallon jug you can buy at Wal Mart 
for $2.95.  Nevertheless, many customers will gladly pay $20 or more for 
a 1 oz jar if they are told that it's "special."

I read a copy of GQ magazine a few months ago. Their fashion for men 
article had shirts at $400, slacks at $900.  Shoes at $1,200. 
Altogether the outfit was about $4,000, including a jacket.

Out of that $4,000 about $3,600 is marketing hype, and about $400 would 
probably produce and distribute equally high quality pants and shoes. 
Heck, being featured in GQ is probably way expensive.

Bob