alt Hacker NewsThe missing piece is not all costs are passed on to consumers.
Company absorb costs all the time. If you think cutting your price by 10% will boost sales by 20%, you do it because total profit is higher even though per unit profit is lower.
And the reverse is true - companies might increase prices and accept lower volume.
Not to mention not all items are interchangeable. Is a car made in Mexico worth the same as the same model made in Germany?
Replies
yibg • 04/03/2025
So basically a lose lose from company and consumer perspectives. Either company makes less profit or consumers pay more or a mix of both.
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briandear • 04/03/2025
The Q5 is made in Mexico.
Low cost items, of the type the vast majority of the population are quite sensitive to the price of, have almost no margin on them to start with. There isn't 10% to cut.