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danvayntoday at 2:30 PM1 replyview on HN

The general implication is the opposite effect. The corporation wants to make more money. They make larger margins with this of course. But beyond that, the implication is that whatever sales are lost from the more expensive price are simply made up otherwise. If products are 20% more expensive but this only results in 10-15% less sales, the corporation is still very happy, particularly due to the margin bit. If loss impact is worse, they’ll usually retune how the product is ‘pitched’ in order to allow for this marginal boost.


Replies

jittlestoday at 3:52 PM

I think the 10-15% hypothetical reduction in sales is their point, not the effect on corporate profits. Less consumer junk for the landfill is good.