Yes, it is well described. But my logic knocks on my skull saying there would be some inherent gaps.
Say, when the manufacturers go for a bank credit at the time when the demand rises ... Is it that they hadn´t had income before that, no depot in general?
It sounds so friendly when banks say "golly... you're sure growing your business... and we want to help"...
What I learned about the aims in the bank biz must have been a misunderstanding. These guys are actually humanists ... they help!
Stupid me was always believing that banks would get states money considerably below current interest in order to lend it to customers and even back to the state ( that´s where states debts come from, BTW ) and that they were handling interests of loan very different from interests of account. Means, they don´t give a flying sh!t about anything on earth except their cash flow and insurance of that.
"if there is a greater demand than there is a supply... then the price stays up."
The price also can be quoted and remained far above reasonable as long as it can be made perceived as being cost for its major part ( which besides has worked out fine so far ) and as long as discount is prevented.
We all know also from general explanations that manufacturers switch off the lights in their two room apartment in the basement before they lay down on a Ikea bed, while their producing employees must be earning 15 grands easily.
But it appears to me that parts end up as a retailed unit for about 20 times the amount they could be single purchased for if not quite some more, depending from case to case. No running costs, developing efforts nor stuff salaries explain that proportion of a jump to my skull knocking fellow.
There must be a huge shed somewhere and I would think that could be partially ... at your position, Fletcher. I hope I don´t sound perverse.
In many cases when I read that phrase " ... in order to stay in business" there is actually included "with usual margin", but unfortunately always left out in the writing or saying. Yet, somehow it belongs to the individual topic in the same way like the phrase itself. Only except for those cases where "to stay in business" would mean "not to go bankruptcy", which, I beg you pardon can´t be meant each and every time it is being used.
No, friends, I say the topic of margin is usually not metioned at all and if just so as if it were reasonable on principle and a minor part of the price labeling.
I also say that it is not the usual "demand and supply" explanation that grounds it all, but that there is preparation to ensure consumers max out of the wallet. Be it manufacturers who can afford to fire dealers or be it much rather nation wide or even international price agreements.
Price syndicats ( if that´s the right English term ), officially illegal, but practised everywhere all the time. ( They only are outed when single members get hostile, thus so rarely, but the penalty gets a joke then anyway and they continue their rounds just like before.)
I go even further to say that certain cheapo products are manufacturered worse than necessary under equal investment to keep the higher price league where it sits. How´s that? Crazy fantasy
Ok, Fletcher, as you have described somehow detailed how things are ( of which I found interesting the part about the big chains policy, BTW ), would you mind to tell us what the parts of one of the GR units do cost?
C´mon, be so nice, ... but don´t cheat!
( You aint gonna do that anyway, I´m just joking ;O)
From nature of the biz you could be sort of pissed at me now, but I insure you no bad intentions personally - actually guess you estimate that already.
It´s just talking about the nature of the game and maybe not that easily taking "the cards as" they are laid.
At least intellectually. Practically I have to go out and just pay the full amount required just like those who believe in the costs declaration.
It isn´t about manufacturing costs, it is about what the max is you can get consumers to shell out with all the means that could help to it. THAT is the pricing lawfulness.
PS: Remember the 900$ jump of the Corby convertible e.g.? It was declared as early miscalculation of production as it like usually sounds solid, doesn´t it.
I would very much assume it was rather from the first dealer feedback.