snipped-for-privacy@snyder.on.ca wrote on Thu, 08 Dec 2016 00:27:15 -0500:
Actually, I disagree completely that "you get what you pay for", since again, that's saying that quality and price are locked in step, and they're just not.
Here, in California, it's a million bucks for a 2000 sq foot POS house. In Texas, that house would be 50K or less.
The quality is the same. The price is very different.
You really get what OTHER PEOPLE PAY FOR, in that the way economics 101 works is that the price of something is based on what other (idiots mostly) are willing to pay for.
So, for example, at Safeway, the lettuce is 2 dollars a head consistently whereas at Trader Joes, it's 1 dollar a head for the same quality lettuce.
How the hell can Safeway charge double? The answer is that OTHER PEOPLE are buying that lettuce.
If Trader Joe was out of lettuce, I'd be stuck paying what OTHER PEOPLE pay for if I wanted or needed a head of lettuce.
The quality would be the same in both cases.
I agree with you that manufacturing is only part of the total cost of an object. In some cases, manufacturing is almost nothing, and where storage is the biggest expense.
Take o-rings for example. How much do they really cost? How much do they sell for in the auto-parts store? The expense is not in manufacturing since they make tens of thousands at a time. The expense is in everything else, as you noted.
Even in the case of tires, look at the expense in California: Tire itself = about 100 bucks Sales tax = about ten percent of that Eco fees = about five or six bucks Shipping from Tire Rack = about 16 bucks each (UPS ground) Installation & balancing = about 20 bucks each Disposal fee = about 3 bucks each California tax on the disposal fee = about a quarter but do they have to tax everything? etc.