Price Mark Up

The bottom line is that they are entitled to charge what the market will bear. No one holds a revolver to anyone's head forcing them to buy these. I am reminded of a TV interview I saw once with a retired CEO of Exxon Corp. who bluntly stated that no one forced anyone to buy gasoline and that you could choose to ride a bike, a horse or walk wherever your heart desired. Just because someone has something the public may really desire is no reason for them to give it away. If it's priced too high then the public will refrain from buying it and the co. can then adjust the price accordingly. That's a free market. Interestingly, in order to let Gillette build a factory in Russia the Russian Gov't demanded 35% of the "gravy". So much for the Marxist theory. :rolleyes: ;)
 
HugoRune said:
I thought this was common knowledge :
http://www.dailymail.co.uk/news/art...r-heads-cost-just-5p-make-sell-2-43-each.html

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I was referring to the price in India, for the full Fusion, as quoted in the earlier post.
I love the idea that you think a Daily mail article makes something "common knowledge", made me chuckle.

To continue the India price comparison, I think a few of you are completely ignoring the power of product placement, just having a big shiny display, is basically free shop floor advertising, whether the intention is to sell that product or just to catch the customers eye, is known only to the marketing department.
So I have now argued your side of the subsidy comment, as it may well be the intention not to be interested in fusion sales, but just to use the display as an advertising tool.
 
Agree.

And all companies do this. Software companies charge different amounts in different countries. iTunes purchases differ from place to place. Sometimes this is tax or duty related, but the underlying prices are generally different. There are varying reasons - sometimes it is just to maximise profits where possible. Other times it reflects a more affluent consumer who is willing to pay more. Other times, there may be scarcity of supply in a market due to logistics related issues (ie, difficulty transporting heavy or bulky goods in volume), or even it may be a regulated market where there are few qualified people/companies who are certified to distribute in a given country. Supply and demand kicks in.

Just on the issue of subsidy. The conventional definition of a subsidy is that it is government or state provision that offsets a company's absence of profit or relative lack of it. One could suggest that a company that makes 100% gross margin in one country but only 3% gross margin in another is "subsidising" the less profitable market. It wouldn't be strictly accurate, but ultimately, it is just a matter of alternative terminology being applied to describe a particular set of commercial/economic arrangements.
 
The Gillette Guard was Mass Marketed in India by Gillette in the 90s..Gillette had a Hole in their Profits for Lower End Disposables..They Wanted into the Low End Market but Didn't want to Undercut their High Profit Margins in the West by Under Cutting their Own High End Cart Market which they Dominate..o_O

Gillette Carried Out One of the Most Ruthless Market Research Programmes & Industrial Espionage Operations in History & Mass Media Infiltrated Marketing..They Wiped Out around 75% of DE Factories in India in around a Year by Demonising DEs as Spreading Disease..:eek:

They Made these Razors by Slave Labour & Used & Polluted all the Local Water & Farmland...These Gillette Guards were Aimed at the Millions & Millions of Poor Indians that Used Cheap DE Razors & Blades..:rolleyes:

In Truth..They Got a High Percentage of the Disposable Razor Market by Out & Out Gangster Tactics which is the Hallmark of International Western Business & Capital..At the Same Time they Dominate the High End Carts in the West as they Don't Want to offer You a Cheap Alternative as it will Undermine their Own High End Cart Market..;)

Gillette have Went on to Do the same in Other 3rd World Countries..Its That Simple..Research it..Remember King Gillette was the 1st Person to Carry Out Mass Market Research..:D

Billy
 
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