Remix.run Logo
pixl97 2 hours ago

Every product follows demand curves. At a price of 0 you could find infinite usage. This has nearly zero relation to how much it costs to provide the product.

bunderbunder 2 hours ago | parent [-]

Except of course it relates. All else being equal, we will prefer $X COGS over $2X COGS because that helps us with both profit margins and price competition.

pixl97 2 hours ago | parent [-]

It relates in the sense there's a minimum cost of production without losses, not the actual price people are willing to pay.

bunderbunder an hour ago | parent [-]

Framing it in terms of the price people might be willing to pay for a single product in isolation frames the point I was making, which was about price competition, right out of the picture.

Maybe I'd be willing to pay $10 for product A if I had other options. But if there's a product B for $3 that's not quite as nice but still ticks all my boxes, then product instantly becomes a lot less attractive.