Why don't people not care if they are being ripped off?

[BusFact]

I tend to agree with adrianh.

If we were really bing ripped off that much then there must be huge profits to make and any sensible soul would simply set up a competitive business next door.

R22.95 is a lot for an ice cream, but its winter and out of season. They're probably selling 10 ice creams a day if they're lucky. Wages, rent, etc still have to be paid. If its a prominent position, they're probably paying through the nose for rent.

I know its more complicated in that they should make it up in summer, but my point is essentially that running a business involves overheads too. The cost of the raw material (in this case ice cream itself) is often not the major factor in determining selling price. This is why so many people get vague answers on this forum when they ask for suggested mark ups as it always depends on your specific situation and multiple factors.

And if he is making a small fortune, then well done to him. Thats capitalism. Although greed can backfire in the long term.

The important thing to remember is that you most definitely do have a choice. If you don't like the price, then don't buy. Its a free market. It may be inconvenient, but then convenience comes at a price.

I also like how others have responded. They've chosen to shop around for the best deal. Again this is capitalism at work. Any company who wants to stay in business will watch their pricing in this sort of environment.

I only find it "rude" or "wrong" when there is no choice available to us. Such as in the case of monopolies of essential products (Telkom, Eskom, Arcelor...) or where legislation forces you to use a certain provider (normally government depts such as Cipro, municipalities, licence departments ....)

[AndyD]

I don't have a problem paying R199.90 for 500ml of my favourite Austrian pumpkin seed oil

If it's good for rubbing on and massaging the wife with then it's worth every cent.

R22.95 is a lot for an ice cream, but its winter and out of season. They're probably selling 10 ice creams a day if they're lucky. Wages, rent, etc still have to be paid. If its a prominent position, they're probably paying through the nose for rent.

I understand your thinking but I still don't see it making sense to fly in the face of basic economic principals. If the supply is constant and the demand is low then the price has to drop eventually. If it's a case of high running business costs and low sales then rather adapt the business model to provide an alternative service or sell something else that's in demand during the winter period.

[murdock]

or like comtest who have the sole agency in sa for fluke...you get your backside ripped so wide open you got to becareful you dont slip over the earth.

i still cant believe the difference in price...anyone know if a company has sole agency...can you import and sell as second hand?

[murdock]

i would have thought if you dropped the price because it is out of season you could get more sales...rather try move more product at smaller margin....increasing the price would just turn people away...quick way to close your bussiness.

like now if i had to increase my price with the ecomony the way it is would be a dumb move...customers are lazy and if happy will what you are offering them they wont loo around...but if i had to increase my price they would look at getting quotes...one lower in these times would mean i loose the customer for a couple of months until the other company messes up or put his price up...this is one od the key factors of staying in bussiness for a long time...just keep the customers happy dont try get rich in one job...the price consistancy will eventually pay off...sometimes i dont increase my rates for 2 or 3 years and i make my customers away of the fact every year.

[wynn]

At 'toysRus" a bubble wand in purple or green cost R20
We purchased two, a purple and green one for the neefies, then realised that the niggie would also require one went back and priced a pink one from 'hello kitty' R70
So now the neefies are each getting a green one and the niggie is getting a purple one, 'hello kitty' is still on the shelf!

[adrianh]

wynn - Capitalism at work - You chose your pricing threshold.

This is why I love Ebay & Bid Or Buy. Its very easy to measure a pricing curve over time. I have done this with my own, and opposition products and its its very clear that the curve is 3 dimensional consisting of availability, price & time. The curve tends to sort itself out over time but it can be manipulated by controlling all three factors. Bottom line is: don't sell too many items, too cheaply, too quickly. The trick is to ride the wave and to manipulate your surf board to stay on top at all times, even when the wave dissapates on the beach you simply create another wave.

[murdock]

or go bust depending on how much capital or float you have...or have a trust fund to keep you going.

[flaker]

over the years ,having phoned around tor tyre prices each time i needed tyres.i've come to the conclusion that if one is in Durban one should just drive to Jacks or bluff tyres. no bargaining one straight price & always the best.major franchises just don't compare.

for the record i have no financial or other interest in the aforementioned business.

[adrianh]

@murdock ... tell me about it ... my butt has dragged on the floor a couple of times between waves...

[murdock]

i have always wondered how people keep their compaines going during tough times...i started my bussiness with a tool box i paid off while doing my apprenticeship...then bought a golf with roof racks...and a 6 foot ladder...no capital...no trust funnd and no parents to bail me out...and no help from nedbank...only some sound advise from the bank manager..."without a bussiness plan we cannot help you" (i see 20 years later nedbank are looking for a bail out bussiness plan )

i have noticed companies who spend too much on overheads feel the pinch during tough times...from my experiences seem to have trust funds which they use to keep themselves going...i see this by cheques issued or bank transfers...i only have GOD providing for me and boy do i really on him sometimes...but he always seems to come thru...even when i spend money on things i want and dont need...a good example of this was a while back when i was living way above my means...spending like there was no tomorrow...got mmyself into bit of trouble...just mentioned i needed some help a day or 2 later i got a call from a customer offering me some work...i worked my butt off and 3 months later i had enough to pay off every single debt i had...and little spare cash to help me get thru the next couple of months...gettting a little off the topic...but hey its important...only one thing in life is gaurenteed...death make sure you are ready for it...i have decided to move in the right direction...you wouldnt think so by some of my threads...nasty comments etc...but i have a long way to go...its a really bumpy road for me...what is important is that people around me are noticing a difference...i dont swear as much...i have a little more consideration for others...and most important the stone in my chest is getting softer...my ex wife always told me i am a heartless swine...i have come to realise she was right...it just a little late

i have started watching pastor oliver on on sunday mornings was at 7 now at 8...(life by design) his service is great...he talks about real life...some church services you battle to stay awake...his service is enjoyable.

when i say i have decided to move in the right direction...this was since november last year.