Originally Posted by fritzl
imo, they are priced according to their target group and market niche.
Damn straight! Any smartbusiness hires a marketing company which does extensive research to determine:
1) what the target market is,
2) what the competition is in that market,
3) what the competition charges,
4) what the best price is to (a) penetrate the market while also (b) MAXIMIZING PROFITS.
The price diferrential between 2 "similar" products has ABSOLUTELY NOTHING to do with product quality. It's purely doing the research & crunching the numbers.
The price differential could be a result of so many factors UNRELATED TO QUALITY, it's ridiculous. Could be that they are looking to serve different target markets (Crispin's may be willing to pay more money that Vass's).
Here's a different example... What if Vass is more efficient in manufacturing & has better brand recognition, thus have a much higher profit margin? If Vass's cost of mfg + cost of marketing is 50% of their sale price, but Crispin's is 75%, each company makes the same PROFIT on each pair sold. Vass certainly benefits from having a lower cost.