You’re pretending that stores can just arbitrarily raise prices. They already set their prices as the maximum the market will bear. And yes, ultimately the point is to make self-checkout cheaper than regular.
You think that was arbitrary? Do you have any idea how much work stores put in to setting prices? It’s more complex than this, but to illustrate, companies will maximize for total revenue, so quantity sold times price. And they know that whenever they raise the price, even by ten cents, some number of people will not purchase that item. They only raise prices if they predict the decline in sales will be more than offset by the increase in revenue per item.
It may seem arbitrary to you, but it’s anything but. The prices in the store are already at what the company estimates to be the optimum total revenue level.
yeah you’re right about your point so far, but this is different. if every grocery store in town were forced to raise prices by 5%, then they could all do it because all their competition does it too.
but if only one store decides to do it, then the customers would change to the other store nearby who offers lower prices.
Note that cheaper self-checkout means more demand for it (and less demand for cashiers). So we’ll have fewer jobs, and worse service for those who can’t (for w/e reason) use self-checkout.
You’re pretending that stores can just arbitrarily raise prices. They already set their prices as the maximum the market will bear. And yes, ultimately the point is to make self-checkout cheaper than regular.
They arbitrarily raise prices all the time. Have you not noticed? And are you going to just stop eating food if it suddenly costs 10 percent more?
You think that was arbitrary? Do you have any idea how much work stores put in to setting prices? It’s more complex than this, but to illustrate, companies will maximize for total revenue, so quantity sold times price. And they know that whenever they raise the price, even by ten cents, some number of people will not purchase that item. They only raise prices if they predict the decline in sales will be more than offset by the increase in revenue per item.
It may seem arbitrary to you, but it’s anything but. The prices in the store are already at what the company estimates to be the optimum total revenue level.
yeah you’re right about your point so far, but this is different. if every grocery store in town were forced to raise prices by 5%, then they could all do it because all their competition does it too.
but if only one store decides to do it, then the customers would change to the other store nearby who offers lower prices.
Note that cheaper self-checkout means more demand for it (and less demand for cashiers). So we’ll have fewer jobs, and worse service for those who can’t (for w/e reason) use self-checkout.
Most of its happening anyway.