VCE Stuff > VCE Business Management
Business Manangement Examples
costargh:
--- Quote from: coblin on April 03, 2008, 11:14:30 pm ---No, I was saying that if ALDI was competitively selling at $2 a loaf in Cranbourne, under the national pricing system, they would not be selling at $2 across the board. They would be selling at a price closer to $2.80 because otherwise they would lose a dollar of revenue from the Toorak people. That hurts the poor, because they don't experience competitive prices. Such a system inhibits competition and hence, the efficiency of the market system.
--- End quote ---
Thats what I said... =S *confused*
Collin Li:
Okay. What you said sounded a bit strange to me, because I thought you were talking as if ALDI hadn't gone about the national pricing move (and wouldn't), but they have.
jsimmo:
Do supermarket chains price product according to the socio-economic status of a particular area?
The pricing is much higher in outter-regional areas, Aldi's 'national pricing' would make it much cheaper for those specific areas.
Collin Li:
Well, the reason why outer-regional areas have higher prices is because of transportation costs. National pricing just means that people living in other areas have to share the burden of paying for the transportation costs. This is because under national pricing, the price corresponding to maximum revenue is approximately the average of all the individual local prices.
This means that even poor places will further experience a lack of competitive prices due to higher costs of supply in rural places that are dragging the national price upwards.
costargh:
--- Quote from: jsimmo25 on April 03, 2008, 11:32:48 pm ---The pricing is much higher in outter-regional areas, Aldi's 'national pricing' would make it much cheaper for those specific areas.
--- End quote ---
Your missing the point. Read Coblins or my post again.
I can see what your saying but why would you automatically presume that top end prices would decrease rather than bottom end prices increasing to "nationwide" equality?
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