Value has no bearing on price. The only yardstick for pricing is, "What will the
traffic bear?" What we used to call tennis shoes cost a few dollars to
manufacture, but they can cost hundreds, because some people perceive high price
as value.

I had to pay $28 for a replacement plastic bottle which contains windshield
washer fluid, then I had to pay another $8 for the plastic cap which closes it
(much like the screw on lid for a milk bottle). This is predatory pricing, but
when you've got the only game in town, you can get whatever price you choose to
charge.

Big companies gobble up smaller companies, in the name of economy of scale. "If
we can make more of it, we can pass on the savings to our customers." This is
their mantra. But somehow those savings never materialize. Since there is no
longer any competition, we can charge whatever the traffic will bear. 

Gasoline is a perfect example. People have to buy gasoline, and they will give
up other purchases to buy it. It's called "Elasticity." Very little of the
gasoline sold today is sold initially to the vendors of gasoline. It is sold to
speculators who mark it up way before it gets to you, and they add no value
whatever. 

Tools are no different than any other commodity. Actual manufacturing cost has
no bearing on pricing. Sellers find the "Price Point," which is the most money
they can charge and still have enough customers to stay in business and prosper.
That is the "Sweet Spot." If you will pay me $100 for something I make for $3,
and we are both happy, well... that's the American Way, baby.

On Jun 28, 2012, at 7:25 AM, Van Hudson wrote:

> One of the articles I read said that the new metal exceeded all other metals
except in one test, ease of sharpening, here 01 high carbon steel remains the
king. Also they said the new steel would be about 30 percent higher in cost.
Also that they were not going to release all the testing data.Therefore, for me,
a novice, no matter how strong the steel is if I cannot put an edge on it
quickly, my work suffers, and at 1/3 more in cost there is no question where my
loyalty lies. More expert woodworkers may be at ease with other steels and more
confident of their sharpening abilities, but I am not there yet. And I think I
have to question coming out with new products that are trade offs and cost more
money. What ever happened to new products that are superior in every way and
cost less. I think they should go back to the drawing board.
> 
> 
> Van Hudson
> 706-318-4167
> 
> 

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