Parnassah Expo 2014 March 25th-26th

[Saver2000]

100%, but you're agreeing that he can charge those prices only because of his monopoly.

Yes and no. Ill explain.

According to you, every business is essentially a monopoly.

If I have a hardware store and I sells tools, and I'm cheaper than any other hardware store - do I have a monopoly?

According to you, I do.

Bec, the other stores cant beat my prices bec they dont have the connections/skill/knowledge/contacts that I have.

And therefore , I now hold the monopoly on these products. (Its not called competition when my competitor charges double the price that I do. That would be comparable to someone offering $750 for the amex apps [which is possible bec thats the standard public offer])

Correct?

(Just trying to make sure I understand you)

[yitzf]

Yes and no. Ill explain.

According to you, every business is essentially a monopoly.

If I have a hardware store and I sells tools, and I'm cheaper than any other hardware store - do I have a monopoly?

According to you, I do.

Bec, the other stores cant beat my prices bec they dont have the connections/skill/knowledge/contacts that I have.

And therefore , I now hold the monopoly on these products. (Its not called competition when my competitor charges double the price that I do. That would be comparable to someone offering $750 for the amex apps [which is possible bec thats the standard public offer])

Correct?

(Just trying to make sure I understand you)

In theory a perfectly competitive market is one where (among other things) all consumers and producers are assumed to have perfect knowledge of price, utility, quality and production methods of products. In reality most markets are not perfectly competitive but that doesn't make them a monopoly. In your case he can't be a monopoly because a monopolist is someone who has the power to set prices. Your hardware store doesn't have any power, on the contrary, the market is so competitive that he is forced to lower his profits in order to undermine his competition. A true monopoly has pricing power, to charge what he wants, and can maximize profits by charging as much as people are willing to pay. Sound very much like our CC app guy.

[churnbabychurn]

There is one variable that could justify charging a large premium: business risk. If this business model can be classified as a operating in a "gray area", the prices make sense.

[notanonymous]

There is one variable that could justify charging a large premium: business risk. If this business model can be classified as a operating in a "gray area", the prices make sense.

I would agree with that, but where is the risk?

Why are you up now?

[churnbabychurn]

I would agree with that, but where is the risk?

Why are you up now?

good morning to you too!
imho doing refundables on a large scale is risky.

[notanonymous]

good morning to you too!
imho doing refundables on a large scale is risky.

But the risk is with yenim, not with the business owner.  Right?

[churnbabychurn]

But the risk is with yenim, not with the business owner.  Right?

if someone wanted to trace it they easily could.

[Saver2000]

In theory a perfectly competitive market is one where (among other things) all consumers and producers are assumed to have perfect knowledge of price, utility, quality and production methods of products. In reality most markets are not perfectly competitive but that doesn't make them a monopoly. In your case he can't be a monopoly because a monopolist is someone who has the power to set prices.   Your hardware store doesn't have any power, on the contrary, the market is so competitive that he is forced to lower his profits in order to undermine his competition.   A true monopoly has pricing power, to charge what he wants, and can maximize profits by charging as much as people are willing to pay. Sound very much like our CC app guy.

One thing at a time here. 

You missed the part about  how I'm able to obtain my  merchandise at dirt cheap rates (and therfore sell at dirt cheap rates) bec I have knowledge/an industry connection/contact at a Chinese manufacturing plant,  which the other stores don't have.

So I wouldn't be lowering my profits.  I would just be using my connection/skill/knowledge/ that others don't have.

[Achas Veachas]

One thing at a time here. 

You missed the part about  how I'm able to obtain my  merchandise at dirt cheap rates (and therfore sell at dirt cheap rates) bec I have knowledge/an industry connection/contact at a Chinese manufacturing plant,  which the other stores don't have.

So I wouldn't be lowering my profits.  I would just be using my connection/skill/knowledge/ that others don't have.

Regardless, a monopoly means that you are the only one offering a goods/service and can therefore charge whatever you want and people will still buy.

[aygart]

Regardless, a monopoly means that you are the only one able to offer a goods/service and can therefore charge whatever you want and people will still buy.

FTFY

[PlatinumGuy]

A true monopoly is when nobody can compete (e.g. gov't charter). If someone else can compete, than acts just like competition to determine the equilibrium of supply/demand



Saying nobody can compete with him would be a joke.

[churnbabychurn]

A true monopoly is when nobody can compete (e.g. gov't charter). If someone else can compete, than acts just like competition to determine the equilibrium of supply/demand



Saying nobody can compete with him would be a joke.

matter of fact there are quite a few guys doing the same thing in Lakewood.

[MarkS]

matter of fact there are quite a few guys doing the same thing in Lakewood.

K fine so it's an oligopoly then.

[PlatinumGuy]

matter of fact there are quite a few guys doing the same thing in Lakewood.

So why isn't anyone undercutting them?

[Dan]

I could care less if they made $5,000 per person, it's a free market. However if they're being shady and not upfront about refundables that can come back to bite people, then it's wrong.

[churnbabychurn]

I could care less if they made $5,000 per person, it's a free market. However if they're being shady and not upfront about refundables that can come back to bite people, then it's wrong.

+1

[TimT]

How was the expo ?

[Saver2000]

I could care less if they made $5,000 per person, it's a free market. However if they're being shady and not upfront about refundables that can come back to bite people, then it's wrong.

I agee  with that 100%.

So why isn't anyone undercutting them?

Who said no one is?

Regardless, a monopoly means that you are the only one offering a goods/service and can therefore charge whatever you want and people will still buy.

You were already answered,  but since your post was in reply to me,  I'll reply.

There's no reason someone else can't offer this,  and as a matter of fact a few people do offer it. 

[Achas Veachas]

You were already answered,  but since your post was in reply to me,  I'll reply.

There's no reason someone else can't offer this,  and as a matter of fact a few people do offer it. 

And being that they all charge more or less the same thing we can assume that that is the fair market value...

[Saver2000]

And being that they all charge more or less the same thing we can assume that that is the fair market value...

Correct.  So what's the monopoly you guys speak of?