Price Mark Up

It's easy to make this all more complex than it actually is.
If the same product is available in 10 countries, and 8 of the countries sell it for £10 and the other 2 sell for £2.50 it matters not whether the lower price is in profit or not, the 8 are subsidising the 2.
I had to buy a fusion in Spain and it cost me the same price in Spar as it would have in a UK Tescos, I might start importing Fusions, from India and retire in a year or 2.......
 
It's simply business i.e wages , rent , power costs etc etc nothing more nothing less . They are not being subsidies

the fact is we generally live a better lifestyle we have to pay for this !
 
Stacy555 said:
It's easy to make this all more complex than it actually is.
If the same product is available in 10 countries, and 8 of the countries sell it for £10 and the other 2 sell for £2.50 it matters not whether the lower price is in profit or not, the 8 are subsidising the 2.
I had to buy a fusion in Spain and it cost me the same price in Spar as it would have in a UK Tescos, I might start importing Fusions, from India and retire in a year or 2.......
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It's not really subsidising though, you are just being ripped off more than people in India if you choose to buy that product. Gillette is a business not a charity, and they set their prices in order to maximise the return for their shareholders. They are not setting the prices because they like people in India more than British people, it's because they make more profit at lower prices in India because their sales numbers are more price sensitive that in the UK.

This is why the reduction in trade barriers and import duties is good for consumers as it makes it difficult for companies to do this sort of thing as people would be able to just import from the cheaper countries.
 
HugoRune said:
It's not really subsidising though, you are just being ripped off more than people in India if you choose to buy that product. Gillette is a business not a charity, and they set their prices in order to maximise the return for their shareholders. They are not setting the prices because they like people in India more than British people, it's because they make more profit at lower prices in India because their sales numbers are more price sensitive that in the UK.

This is why the reduction in trade barriers and import duties is good for consumers as it makes it difficult for companies to do this sort of thing as people would be able to just import from the cheaper countries.
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The problem with both our arguments is we have no figures to back us, if I could prove there was zero profit margin after manufacturing, advertising, and distribution + taxes then my subsidy theory would be correct, but on the other hand if there was any profit at all, then you're argument would work.
 
Product placement in the marketplace , I maybe wrong but I'm led to believe DE shaving is still the first choice in India, so I'd guess even at a reduced price something like the Fusion still would not be a top seller.
 
Stacy555 said:
The problem with both our arguments is we have no figures to back us, if I could prove there was zero profit margin after manufacturing, advertising, and distribution + taxes then my subsidy theory would be correct, but on the other hand if there was any profit at all, then you're argument would work.
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No. A subsidy is where the government steps in and pays a company an amount to offset a lack of profitability.

It is not a subsidy where a company has varying levels of profitability across different geographical markets.
 
Supermangs said:
No. A subsidy is where the government steps in and pays a company an amount to offset a lack of profitability.

It is not a subsidy where a company has varying levels of profitability across different geographical markets.
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We have a winner. With that, let's consider the subsidy matter settled.
 
Supermangs said:
No. A subsidy is where the government steps in and pays a company an amount to offset a lack of profitability.

It is not a subsidy where a company has varying levels of profitability across different geographical markets.
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We have not proven the existence of any profit, please read posts before replying with predetermined assumptions.
 
Deep down, do any of us really care that much?

Saturday morning now, just took the oldest lad for a swim, the misses is in a good mood, and I have baked some bread that would save the world if given the chance. That's more important.
 
Supermangs said:
Deep down, do any of us really care that much?

Saturday morning now, just took the oldest lad for a swim, the misses is in a good mood, and I have baked some bread that would save the world if given the chance. That's more important.
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I don't care as such, as its something I have no influence over, I just find it an interesting discussion.
As I said, without any figures we can't draw a conclusion, we are simply talking, that's what forums are for, no slagging off or abuse, just good clean debate.

Enjoy your son and wife, as I do mine, don't get me started on saving the world......lol.
 
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