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Old 12-31-2019, 09:38 PM
 
Location: Niceville, FL
8,084 posts, read 16,627,194 times
Reputation: 8590

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Quote:
Originally Posted by JONOV View Post
For Epi-Pens and insulin the costs to startup are extremely high. The regulations involved in making drugs that people inject into their blood mean that it's a lot more difficult than starting a Pizza Shop. And if you think you can sell the product without FDA approval, or FDA inspection of your plant, hahahaha...They'll shutter you in a heartbeat. One day your accounts will be shut down and your website will be locked. Remember what the feds did with a bunch of vaping pens?
Unlicensed medical devices can also probably get you up on manslaughter charges if one of your devices is defective enough to cause that level fo harm.
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Old 12-31-2019, 09:53 PM
 
7,420 posts, read 6,987,662 times
Reputation: 3466
Quote:
Originally Posted by sheerbliss View Post
Even when producing an inelastic good, you're still subject to competition in most cases. Once a drug goes off-patent, other companies can make generic versions of it. Charge a lot for your salt (a necessary nutrient), and other people will offer salt for sale.

In some cases, people will sooner or later make substitutions. The popularity of low-carb diets for instance, probably has something to do with the rocketing price of insulin.
And posters in the MW threads are all about prices jumping up everytime because of MW.

Quote:
Originally Posted by pittsflyer View Post

But just starting the 15th pizza place, you think thats the winning idea? Unless your putting drugs in your food and charging $50 for the pizza I just dont get it.
That is the model all the franchises follow though. The franchisors charge exorbitant fees, and the franchisees somehow have the money to pay, and they happy with low margins.

Quote:
Originally Posted by pittsflyer View Post
Insulin and gasoline are prime examples of inelastic as well as epi pens. why wouldnt people jump into these markets. Start a metal building somewhere and run the company through an over seas shell corporation and sell this stuff online and avoid all the regulations.

You could probably make an epi pen for $20 and sell it for $100 and undercut and since you have no overhead other than maintaining the fake buisness and the small lab at an undisclosed location you would have nothing but money pouring into an off shore account through pay pal.

Actually you would not even need a shell corp you would just need a off shore account to link pay pal account to.
Quote:
Originally Posted by beachmouse View Post
I've had a couple relatives own gas stations. People are actually very price sensitive about the gas they have to buy and will drive miles out of their way to save pennies per gallon. The margins on that part of the business are quite terrible because of the competition (when you go up against Walmart/Murphy Oil, it's going to be scant pickings) and where you actually make your profit is on the convenience store mark up side of the business.
But gasoline has gone through many ups and downs throughout the decades. There were always a handful of places that charged cheaper than the rest, but still did not cause them to drop the prices.

https://www.titlemax.com/discovery-c...rough-history/

https://zfacts.com/gas-price-history-graph

https://www.statista.com/statistics/...es-since-1990/
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Old 01-05-2020, 11:10 PM
 
Location: Gulf Coast
1,261 posts, read 719,198 times
Reputation: 2527
Quote:
Originally Posted by pittsflyer View Post
Why wouldnt everyone just produce things with very low market elasticity.

Wouldnt buisness have much lower probability of failure if people only produced low elasticity items?


I have the answer! Because I like my underpants to stay up?
Ok I plead total ignorance on what you're talking about. Sorry. Carry on.
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Old 01-06-2020, 01:16 PM
 
Location: Ohio
20,961 posts, read 14,840,312 times
Reputation: 17259
Quote:
Originally Posted by pittsflyer View Post
Why wouldnt everyone just produce things with very low market elasticity.

Wouldnt buisness have much lower probability of failure if people only produced low elasticity items?
Quote:
Originally Posted by pittsflyer View Post
I am watching all 40 something crash course videos and they dont really explain it.
Then stop watching the videos, because they're of no value.

If you understood Price Elasticity, then you'd know that when a Supplier raises prices, there are four possibilities:

1) higher revenues and higher profits
2) higher revenues and lower profits
3) lower revenues and higher profits
4) lower revenues and lower profits

Pricing can also coerce changes in operations, processes and methods.

Do I really need a $60/hour union janitor? No, I can out-source that and contract with Quick-Clean to provide janitorial services. The union maintenance workers who sit around watching porno on their cell-phones all day? I can out-source them and contract with maintenance/mechanical contractor.

Can I out-source accounts receivable, accounts payable, payroll, accounting and HR? Probably, and with great cost-savings.

I might contract for a marketing survey. If few are aware of my products or services, I probably need to spend more on advertising.

Maybe redesign packaging or re-brand the product or service.

I might search for alternate suppliers to reduce costs.

Trim the fat off management and supervision.

Haven an industrial engineer re-examine your processes and methods.

There's a lot of things you can do before you actually have to raise prices. If you've already done those things, then I guess you'll be raising prices.
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Old Yesterday, 02:42 PM
 
1,312 posts, read 620,786 times
Reputation: 1493
we produce highly elastic products because many people nowadays are very... what's the correct word to avoid getting banned??? CURVY. Products are necessary to go with the flow, expand and contract, yet have enough tensile strength to not collapse under all the strain.
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Old Today, 02:52 PM
 
6,052 posts, read 3,252,248 times
Reputation: 10991
Quote:
Originally Posted by rya96797 View Post
we produce highly elastic products because many people nowadays are very... what's the correct word to avoid getting banned??? CURVY. Products are necessary to go with the flow, expand and contract, yet have enough tensile strength to not collapse under all the strain.
iphones, houses, college, and autos are all goods that have been somewhat inelastic or at the very least not very elastic.
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