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Re:Lego breaks ground on first US manufacturing facility by cedilla on Sunday April 23, 2023 @12:18PM (#35677557)
This isn't even the mistake. Price has very little relation to costs - except that most products can't be sold below cost, at least not for long.

The price of the iphone is a good example. All the costs that you name exist, but they are completely irrelevant. Apple sells the iPhone for a thousand dollars because enough people still buy them at that price.

Re:Lego breaks ground on first US manufacturing facility by brookst on Sunday April 23, 2023 @12:21PM (#35677575)
Yes.

Commodities are priced at cost plus.

Differentiated goods are priced based on value delivered.

Re:Lego breaks ground on first US manufacturing facility by lotsofpulp on Sunday April 23, 2023 @12:43PM (#35677846)
>Differentiated goods are priced based on value delivered.

I prefer “perceived utility” rather than “value delivered”.

Re:Lego breaks ground on first US manufacturing facility by brookst on Sunday April 23, 2023 @12:57PM (#35677993)
Sure, I enjoy semantic rhetoric as much as anyone does.
Re:Lego breaks ground on first US manufacturing facility by homarp on Sunday April 23, 2023 @01:01PM (#35678041)
hence the cost of linux centos (before being killed)

“value delivered”: same as RHEL

“perceived utility”: a path to RHEL subscription

Since the second is not true anymore for IBM, centos was converted to be less of a threat to RHEL by decreasing its delivered value, and offering a 'new' utility: kind of work like RHEL but please pay to get the full RHEL experience.

Re:Lego breaks ground on first US manufacturing facility by mlhpdx on Sunday April 23, 2023 @01:31PM (#35678399)
Understanding the cost of a product to a vendor is important to me as a consumer.

If I’m having my house painted I will have many vendors willing to do the work at very different prices. It’s not a commodity since I have quality expectations and vendors have different levels of experience, skill and diligence. I know how much the paint, other consumables and equipment costs, so if they quote low or high on that I can take it into account. I can figure out what portion is labor, and conclude what level of skilled folks they’ll use. I can ballpark their profit and make sure it is in line with my values (I want them to have a successful business if they do good work, I don’t want to pay for a shiny new lifted F-350 4x4 dually Cummins diesel crime against humanity).

Maybe it’s just me.