Darrell Feltmate wrote:
George
I like your comments on "steak and sizzle."

I think you have hit it on the head.

I think many of the economic theories can only be applied to
commodities. You can't sell a barrel of oil for anything much other than
the current global price for oil.

Things change a bit when you get into consumer commodites, say digital
cameras, where you have variation from one product to another in terms
of functionality. You then get into less easily quantified values such
as brand, reliability, warranty etc, and things get even more complex
when you take the retailers and their value added options. But I bet you
a top class camera shop selling top of line cameras is impacted by Wally
Market selling the cheapest they can get their hands on. The market is
full of a cross section of buyers, some who will gladly pay top dollar
for quality products from someone who can offer top class customer
service, others who will buy the cheapest thing that takes pictures.

Once you get into much of our work, craft or art, the price you can get
is much more to do with perceived value by the customer, and the size of
their wallet, and the way and place you market it. The $50 hollow vessel
in the farmers market is unlikely to impact the $900 hollow vessel in
the exclusive gallery.

I have customers who buy my work for all sorts of reasons that economics
(at least not the economic level I took) could not compute.

--
Derek Andrews, woodturner

http://www.seafoamwoodturning.com
http://chipshop.blogspot.com
http://groups.yahoo.com/group/toolrest/