Trump continues to back aluminum and steel tariffs despite Republican fears

[Benton]

(03-09-2018, 09:55 PM)Dill Wrote: In a free market, shouldn't one of these car makers at least look for a competitive edge by lowering prices just that much?

Or is it that they just can't let go of the higher price no matter what, like one of those coconut monkey traps with peanuts inside. Monkey can slip his hand in the hole, but cant pull it out with a fistful of peanuts. And won't let go of the peanuts, even if it means he's monkey soup.



Or is the a gentleman's agreement between competitors not to do that?

A few years ago my former employer called me in to let me know that prices were going up 25% on copy sales, 20% on advertising rates. No exceptions. When I argued we'd lose at least 15% of our readers and about 20% of our advertisers, the corporate guys said 'don't worry about it — you'll have to lose 25% of your readers to notice the drop and just increase rates 25% to make up for the loss in accounts.'

That was the answer. Not keeping more customers, just setting rates high enough to get a 10-15% overall increase in profit over the previous year.

Ford, Chevy, etc isn't concerned with Bob Smith in Dayton being able to buy a moderately priced $12,000 car on his $30,000 a year salary. Not when the profit margin is much better on John Smith buying an over priced $60,000 SUV that costs nearly the same to manufacture.

[*michaelsean*]

(03-09-2018, 11:46 PM)Benton Wrote: A few years ago my former employer called me in to let me know that prices were going up 25% on copy sales, 20% on advertising rates. No exceptions. When I argued we'd lose at least 15% of our readers and about 20% of our advertisers, the corporate guys said 'don't worry about it — you'll have to lose 25% of your readers to notice the drop and just increase rates 25% to make up for the loss in accounts.'

That was the answer. Not keeping more customers, just setting rates high enough to get a 10-15% overall increase in profit over the previous year.

Ford, Chevy, etc isn't concerned with Bob Smith in Dayton being able to buy a moderately priced $12,000 car on his $30,000 a year salary. Not when the profit margin is much better on John Smith buying an over priced $60,000 SUV that costs nearly the same to manufacture.

You can tell a business is in trouble when they raise prices (that aren't related to a raise in costs such as raw materials) rather than try to increase sales.  uSA Today kept doing that, and I just stopped buying  it.  

[RICHMONDBENGAL_07]

(03-07-2018, 09:55 AM)Belsnickel Wrote: I agree with you on this, except that you named AHCA, or the GOP healthcare act from last year. Did you mean something else?

I might be confused on this but, I thought the AHCA was similar to the GOP healthcare act?


Sorry for the late response.

[Belsnickel]

(03-21-2018, 03:38 AM)RICHMONDBENGAL_07 Wrote: I might be confused on this but, I thought the AHCA was similar to the GOP healthcare act?


Sorry for the late response.

AHCA was the GOP's attempt at a healthcare bill. I was confused that as a "liberal" you were apologizing to other liberals for thinking it was bad policy. I don't think any liberal would disagree with that.