On 11/11/2014 1:17 PM, trader_4 wrote:
On Tuesday, November 11, 2014 2:15:31 PM UTC-5, SMS wrote:
On 11/10/2014 9:14 AM, wrote:

For years, Toyota lost money on every Hilux sold in North America, but
they sold them for what they could get for them to allow them to
import more Celicas, Coronas, and Corollas - models they could sell
all they could get and more.

The same has happened with virtually every other manufacturer/dealer
at one point or another.

Yep. Prices are usually set at "what you can get" not your cost plus
some fixed mark-up. There are some exceptions, but not many. A _LOT_ of
people don't understand this, not just djb. Now it is true that some
companies drop products if they are losing money on them and there is no
other reason to keep the product line (but often there are reasons that
make sense).

Costco prices would be no lower if they did not provide nitrogen. It's
just not they way retail works.

Economics 101 says you're wrong.

But Marketing 432 says that I'm right.

Read this book: http://www.amazon.com/dp/0387769994 and you will gain
an understanding of how prices are set.