On 5 October 2012 00:44, Timothy Sipples1 <[email protected]> wrote:
> Suppose Proctor & Gamble introduces a new laundry detergent that requires > 25% less to wash the same number of loads of laundry. But it costs a bit > more to make: P&G also announces a 3% price increase per gram in Canada and > a 5% price increase in the United States. Would you buy that new detergent? > Of course you would -- it's a better deal. You need fewer grams (value > units) to do the same work. Sure, you'd prefer zero price change or even a > price decrease per gram -- who wouldn't? -- but the fact is it's still a > better deal. Prices have denominators, and you always have to consider > what's happening to them. Funny - I was buying laundry detergent just a couple of days ago, and now it's Friday, so I can be as off-topic as anyone else. The generic "no name"* detergent, which in my experience is just as concentrated and works just as well as the brand name offering (let's call it "Ebb"), costs around 10% as much. So if P&G's new offering (perhaps "Tsunami") is as improved as you describe, they would still have a very long way to go to be price competitive, and no - I still wouldn't buy it. Obviously they compete on other perceived advantages of their product, and naturally have a large interest in having people believe in its superiority regardless of price/performance. But of course if P&G were the only maker of laundry detergent, oh I don't know, perhaps because they held critical patents they refused to license to anyone else, or some such reason, everyone would pretty much have to pay their price, wouldn't they... Have a good weekend. Tony H. * "No Name" is in fact a registered trademark of Loblaws Inc. for the following wares: (1) Vinegar, coffee, liquid detergent, fruit and vegetable juices, fabric softener, laundry bleach. (2) Bathroom tissue. (3) Bar soap. (4) Baby powder, hand and body lotion, cream rinse for hair. (5) Re-usable paper cloths and paper towels. (6) Sandwich bags. (7) Facial tissue, aluminum foil, garbage bags, and household plastic cleaners. (8) Sanitary napkins, light bulbs, cookie mix and cake mix. (9) Brownie mix, English muffins, bread, bagels, kaiser buns, paper plates, hair spray, antiperspirant, deodorant, and vitamin tablets. (10) Diapers and liquid cleaner. (11) Rubber gloves, powdered household cleaner. (12) Toilet bowl cleaner. (13) Foam plates. (14) Paper towels. But although some No Name products are very good, I don't buy their laundry detergent, because it's still more expensive than the no name one I do buy whose name I don't even remember. Tony H. ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [email protected] with the message: INFO IBM-MAIN
