Quote:
Originally Posted by seafox
It is funny though when I can fly 8,000 miles to the Philippines and buy a bottle of Gatorade and 2 small bags of peanuts for less than I can buy a bottle of Gatorade in the US and the bottle was bottled in the US and shipped to the Philippines.
Says something wrong about either 1)the cost of manufacturing goods in the West due to advertising raising the cost per item or 2)we just grin and bear it when it comes to how the manufacturers price out their consumer goods.
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Quote:
Originally Posted by Tommychrk
Greed in the boardroom Seafox!! Charge maximum of what people are willing to pay in the US and charge what people can afford to pay in the Phillipines.
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I would not call it greed, unless all profits are greed. Doing business in the US is more expensive than SE Asia. Cost of manufacturing is just one element. Transportation, distributors/wholesalers, retailers, taxes, marketing all contribute to higher costs, which makes the products more expensive for consumers. As for the corporate profits, everyone wants as much as the market can bear, but don't forget competition; there is a limit to how much you can inflate the prices.
Gatorade is actually a great example as they serve two distinct different markets in the US. Consumer/Sport and Industrial Safety (electrolyte replacement products). The beverage is the same, but the industrial products are much less expensive as there are less marketing expenses and no retail outlets.