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Old 12-13-2012, 04:40 AM   #571
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Don't feed the trolls!

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Old 12-13-2012, 04:45 AM   #572
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Originally Posted by TyTanium View Post
Come on man, don't be a tool. Strawman argument.
Sorry, that was meant to be humorous... guess it needed a or something :P
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Old 12-13-2012, 04:54 AM   #573
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Apologies for straying off-topic. I've just seen one too many posts here talking about pricing of beer and the confusion/frustration around it. I was just trying to be helpful and correct the misunderstanding and got caught over-explaining and appearing argumentative. Let's have a beer and move on. :-)

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Old 12-13-2012, 12:14 PM   #574
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That's why they have to charge market prices, not a price based on whatever ingredients they decide to put into it.
How do you think the market sets its price? Even in situations with pricing power or price discrimination, marginal & avg costs drive optimal pricing.

And I appreciate constructive debate...it sharpens all of our understanding.


Funny thing I heard about beer last night:
At train station, headed home late (9:30pm)...see they have a sign for gumballhead...wahoo! "Sir, have any gumball left on tap? I'll take a pint"
"No tap, only bottles. $8.50."
"8.50 for one bottle of beer?"
"Yes"
"Dang. See ya"

Note: P>MC...captive audience; more like MR=MC and priced accordingly
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Old 12-13-2012, 12:21 PM   #575
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Just want to note for the record that I tried (unsuccessfully) to steer this back in the direction of humorous beer-related anecdotes. Here's another attempt:

So we're having a holiday party at my house this Friday, and I asked folks to bring either a bottle of wine or a sixer of their favorite beer. And I wrote something on the invite like, "Since we're homebrewers, we especially appreciate pop-top, as opposed to twist-off bottles." One of my friends, who knows I'm into beer but doesn't drink much of it herself, asks me, "OK, so if I want to get Bud Light in pop-top bottles, do I need to go to a special store for that?"

I hid my smirk and told her it's OK to bring cans/twist-offs, whatever. You can't win 'em all!

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Old 12-13-2012, 12:32 PM   #576
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Why are they stupid? Because YOU don't value it? Update: the cards actually had $400 on them and also gave other benefits and were sold for $450 by Starbucks. One person paid $1000 on eBay for one. http://money.cnn.com/2012/12/10/news/companies/starbucks-card-ebay/

I bet lots of people here pay prices for beer that a lot of people think is stupid. A man dying of thirst in the desert would happily pay $100 for the last bottle of water. Is he stupid too? I'd say he'd be stupid not to pay it.
I made that comment under the assumption that it was a $50 gift card, and that the only other thing differentiating it from another starbucks gift card was that it was made of steel. That would in fact be STUPID.

Also, I made the comment because after hearing it, it WAS funny.
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Old 12-13-2012, 04:58 PM   #577
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Quote:
Originally Posted by TyTanium
How do you think the market sets its price? Even in situations with pricing power or price discrimination, marginal & avg costs drive optimal pricing.

And I appreciate constructive debate...it sharpens all of our understanding.
The market sets its price the way all markets do. Imagine yourself selling widgets for $1 and people are flocking to buy them that you can't make them fast enough. You'll quickly realize you should raise your price. When you raise it so high that you have widgets left over, you'll lower your price. And you'll constantly repeat this as supply and demand fluctuate. Your grocer selling beer does the same thing, only they have lots of experience to set the initial price more accurately.

The cost of producing the beer never enters into the market's pricing. The grocer doesn't call the brewer and ask for the marginal cost of the beer. The grocer simply knows what their market will pay. Sale pricing is evidence that the grocer made a mistake, not that the contents of the beer changed.

Quote:
Originally Posted by TyTanium
Funny thing I heard about beer last night:
At train station, headed home late (9:30pm)...see they have a sign for gumballhead...wahoo! "Sir, have any gumball left on tap? I'll take a pint"
"No tap, only bottles. $8.50."
"8.50 for one bottle of beer?"
"Yes"
"Dang. See ya"

Note: P>MC...captive audience; more like MR=MC and priced accordingly
And the same bottle costs less elsewhere (even though the contents of the bottle are unchanged). And notice that he didn't have to pay it. Enough people do that and the price will drop (even though the contents of the bottle are unchanged). This is what most people misunderstand, they think sellers somehow can force people to buy what they're selling. If they had that power, why isn't that bottle $10 or $1000 or $1000000? Because prices (in a free market) are set solely by supply and demand, not by things like cost of ingredients.

Again, if beer was priced based on cost to make it, why aren't brewers trying to spend more money to make a beer rather than always trying to cut costs? Because they don't have the luxury to set price based on their cost.
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Old 12-13-2012, 05:04 PM   #578
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Get the f over yourself. You ruined this thread.

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Old 12-13-2012, 05:13 PM   #579
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Funniest thing I have heard about beer was several pages of economics posts. Those hard costs vs. supply and demand and market share topics really tickle my gizzard.

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Old 12-13-2012, 05:19 PM   #580
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The cost of producing the beer never enters into the market's pricing. The grocer doesn't call the brewer and ask for the marginal cost of the beer. The grocer simply knows what their market will pay. Sale pricing is evidence that the grocer made a mistake, not that the contents of the beer changed.
How can that possibly be true? Certainly there's a minimum cost that the brewery can sell their beer for, since they have to buy ingredients/pay workers/etc. The grocer may choose to pick some higher price point because they think they can sell the beer for that higher price, but I don't see how you can say the cost of producing the beer doesn't enter in to the pricing of the beer on the market.
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