I'm just saying that you can't claim a price differential is justified by a cost differential without actually doing the math and providing X% cost differential ~+ X% price differential.
Because absent those being equal, we have to consider that there are more factors and without context we can't even determine the relevance of the cost factor.
In my view, the price differential exists simply because it can. People will pay $10, $20, $50 or more for a box of Legos. They grumble, sure. But they still buy them. I buy them because they work well, they're partnered with brands and properties that people also really like and they execute well in the tone and context of those brands.
But I'm of the mind that prices for all non-commodities are set by willingness to pay and costs are a function of how much profit corporations needs to justify their investment.
Ergo, that Lego spends more to make the pieces well is a consideration toward their profit margin. Not the price.
I'm just saying that you can't claim a price differential is justified by a cost differential without actually doing the math and providing X% cost differential ~+ X% price differential.
Because absent those being equal, we have to consider that there are more factors and without context we can't even determine the relevance of the cost factor.
In my view, the price differential exists simply because it can. People will pay $10, $20, $50 or more for a box of Legos. They grumble, sure. But they still buy them. I buy them because they work well, they're partnered with brands and properties that people also really like and they execute well in the tone and context of those brands.
But I'm of the mind that prices for all non-commodities are set by willingness to pay and costs are a function of how much profit corporations needs to justify their investment.
Ergo, that Lego spends more to make the pieces well is a consideration toward their profit margin. Not the price.