Originally Posted by
Illusions
I'm not assuming that companies are keeping prices down out of the goodness of their hearts, but instead following a rhetoric where they don't 100% know for certain the exact price point to sell new product at, and when the product premiers, increase the price based on how well it sells, up to the point where it starts hurting sales. They also have the option of lowering the cost of production instead of increasing the price of an item if that becomes necessary.
Well since I can't just publish on the internet the revenue numbers of a single retail store for a day since it would be unethical, I'd have to make one up.
Of course they are made up. I could say there is a retail employee somewhere making $8.15 an hour. Is that made up? Yes. Is it unrealistic or bogus? No.
I'm suggesting no such thing. I was stating how much extra a company would have to charge per product if they continued to sell the same quantity and type of product. Or if you wanted to get technical their AUR would have to increase $.04 per $1.
Real Estate costs, administrative costs, warehousing, utilities, everything except taxes and the cost of employee benefits would be the same if we're selling widgets at $1.04 versus $1 and rolling the extra $.04 per product over into employee pay.
Already discussed this, and I mentioned that I rather doubt it would increase the cost passed onto the consumer past $.05 per dollar spent. Regardless, the numbers I "made up" exaggerated the amount of full-time employees by a lot and went low, at least from my experience, on the per day earnings of the store.
So what you're saying is either A) Someone has to do something unethical and publish retail store earnings, employee hours used, employee pay, etc. per day or B) Corporate has to do something stupid and publish this data publicly or you're going to ignore people's hypothetical scenarios based on experience?
Yeah its almost like I have no experience with any of this ever and I'm just pulling the numbers out of thin air!