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Reply by NBeener

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Posted on Requesting feedback on an idea to kickstart the economy

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NBeener

4806 posts in 1772 days


#1 posted 847 days ago

Okay … here’s my sincere answer, and … truly, in a nutshell.

Unless the continuing rising costs of energy really skyrocket, it’s still a LOT cheaper to make this kind of item offshore. That’s particularly true when they can be shipped a BILLION (or a BAZILLION) units to the shipping container.

So … with domestic cost structures … I think sales would be severely impacted.

Profits would be, too, since the costs would have to be passed along—at least in large part—to the consumer.

Before EVER implementing such an idea, though, companies could do price-sensitivity testing, by changing ONLY the price, in an effort to tease out the elasticity of demand, as price goes up or down.

From there, they could likely project out the sales impact of the domestic cost AND pricing structure.

NONE of which should give ANYBODY the impression that my position on pie OR ice cream … has changed.

-- -- Neil


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