How much a water bottle cost near river bed of Ganges: 30₹: How much a water bottle cost in midst of sahara desert:300₹, would not be a surprise!
In order to have recession proof business, cost of a product needs to be priced at not the exotic value but at the intrinsic value.The value of the product depends on production costs of course, but production costs depend on rarity of the inputs used. Example in the first does't convince you! Why does gold costs so much, does it not depend on the rarity?, (by the way Rhodium is more costly than Gold and Rhodium is costlier than Gold) If materials used in making a Tata Nano suddenly die down, how much does a Nano costs to produce and eventually at what price does Nano be sold?
Comments
Post a Comment