does it really cost them 30-40% more to make a stainless steel appliance?

[piasabird]

Use food grade silicone spray and it gives a coating to the stainless steel. It is like a stainless stell polish. Plain old white looks good to me. Nothing like greasy stainless steel.

 

[0roo0roo]

nope, basic business, keep your higher end exclusive, charge a nice premium, make money. stainless steel sheeting is more expensive than regular steel but its just crude sheeting, not cnc milled super complex shaping of metal or anything at all.

 

[AyashiKaibutsu]

You need to google for Supply, demand, and equilibrium.
Final cost of a product has NOTHING to do with its cost of production.

Thats why PS3's sell for less than they cost to make, and cars sell for 10 times what they cost to make.

PS3s sell for less because they use the razor and blade model; not because of supply and demand. Although widely applicable to things, believe it or not supply and demand isn't the end all be all of economics.

 

[actuarial]

You need to google for Supply, demand, and equilibrium.
Final cost of a product has NOTHING to do with its cost of production.

Thats why PS3's sell for less than they cost to make, and cars sell for 10 times what they cost to make.

Maybe you need to look it up. Cost of production very much has to do with the final price, it's just not the only component.

 

[Train]

Maybe you need to look it up. Cost of production very much has to do with the final price, it's just not the only component.

The production price has to do with how much you will profit or lose, it has nothig to do with final price to the buyer though.

The seller can TRY to assure he will make a profit, but in the end the buyer will only pay what the buyer is willing to pay, PERIOD.

 

[Sho'Nuff]

I am holding out for genetically engineered zebra skin that can be grown right on the surface. I want tiger in the bathroom and turtle for my swimming pool deck. I want my roof covered in cork bark six inches thick.

On pawn stars last night the duo picked up a refrigerator made in the 60's that was clad in cow skin.

 

[actuarial]

The production price has to do with how much you will profit or lose, it has nothig to do with final price to the buyer though.

The seller can TRY to assure he will make a profit, but in the end the buyer will only pay what the buyer is willing to pay, PERIOD.

So production price doesn't figure into the supply curve at all?

In the end any single buyer will only pay what they're willing to pay, but that doesn't mean they're the only buyer. Not all demand curves are perfectly elastic.

 

[DrPizza]

At first, stainless steel seemed like a pita to keep clean. But then I figured, "I must be doing this wrong." Since I'm not a moron, I was able to figure out how to clean it and keep it looking clean. When I clean the kitchen, it's actually about the easiest thing to clean.

Also, I've never noticed a 30-40% price difference. OP must be buying low end appliances if the difference is that large of a percentage. Or, he's talking about very inexpensive appliances such as a coffeemaker where he's comparing the price of making a molded plastic body vs. stamped stainless steel.

 

[Numenorean]

No it doesnt cost them that much more. They are capitolizing as you said. We got SS when we moved in on all kitchen appliances. Biggest mistake we made. Would definatly take a do over and go black and save some money.

Are you sure?

 

[spidey07]

Looking at houses the listings and owners sure seem proud of their "all stainless steel appliances". Enough so that they think it should add 15K to the price.

So it's really just a demand thing and what people are willing to pay. Still dreaming about an all Viking kitchen.

 

[JulesMaximus]

I prefer mine chrome plated.

I'd like mine painted hot rod red with flames on it.

 

[soulcougher73]

Are you sure?

Wow im so glad you joined the conversation to point out a spelling mistake. So proud of you.

 

[shortylickens]

PS3s sell for less because they use the razor and blade model; not because of supply and demand. Although widely applicable to things, believe it or not supply and demand isn't the end all be all of economics.

They use the blade and stick model because they HAVE to. The equilibrium price is below the cost of production. They dont have any other choice. If they tried to do a standard 10 or 20 percent markup no one would buy them.
The Wii sells at a profit and they make money off the games. Their equilibrium price is above the cost of production.

You think Sony WANTS to sell units at a loss? And reason supply and demand isnt the end all be all is because of political pressure to fuck with prices, like housing, oil, and utilities.

Oh wait, price ceilings and floors ARE part of supply and demand. They're accounted for in ECON 101.
God damn I wish people would stop criticizing me when I know I'm right.


FUCK!

Got to fap now.

 

[actuarial]

Oh wait, price ceilings and floors ARE part of supply and demand. They're accounted for in ECON 101.

God damn I wish people would stop criticizing me when I know I'm right.

You don't think price floors and the supply curve are affected by production price at all?

 

[Slew Foot]

Stainless steel is fucking awesome. You can keep your shitty white plastic fridge in your trailer park.

 

[silverpig]

You need to google for Supply, demand, and equilibrium.
Final cost of a product has NOTHING to do with its cost of production.

Thats why PS3's sell for less than they cost to make, and cars sell for 10 times what they cost to make.

That has little to do with it.

SS costs more to buy because people are willing to pay more.

 

[silverpig]

They use the blade and stick model because they HAVE to. The equilibrium price is below the cost of production. They dont have any other choice. If they tried to do a standard 10 or 20 percent markup no one would buy them.
The Wii sells at a profit and they make money off the games. Their equilibrium price is above the cost of production.

You think Sony WANTS to sell units at a loss? And reason supply and demand isnt the end all be all is because of political pressure to fuck with prices, like housing, oil, and utilities.

Oh wait, price ceilings and floors ARE part of supply and demand. They're accounted for in ECON 101.
God damn I wish people would stop criticizing me when I know I'm right.


FUCK!

Got to fap now.

Sorry dude, you don't know what you're talking about.

Sony could charge $1k for a PS3 and there'd be a price equilibrium. Everyone who thought it was worth $1k would buy it, while people who didn't think it was worth $1k wouldn't.

Supply and demand is econ 101 for a reason - it is too simple to be applied in the real world, and certainly doesn't apply in this case. When you take into consideration brands, models, features, finishes, and most importantly, user preferences, it all goes to shit.

You really think it costs LVMH 50x what it costs Adidas to make a bag? It is all about the user's willingness to pay based on their preferences.

How well do you think a hot pink, shit brown, and puke green fridge would sell? Black? They both have the same innards and the same $0.50 coating of paint on them.

 

[Sureshot324]

You need to google for Supply, demand, and equilibrium.
Final cost of a product has NOTHING to do with its cost of production.

Thats why PS3's sell for less than they cost to make, and cars sell for 10 times what they cost to make.

You are forgetting the supply part of supply and demand.

What people are willing to pay depends largely on what's available in the market. If all SS appliances cost 2x as much, some people would still be willing to pay that. Not as many, but some would. Competition should drive prices of SS appliances down. The reason they say high is either price fixing (all major manufacturers agree to keep prices high) or they keep them high because they know if they cut prices, all other companies will be forced to match (basically the same effect as price fixing).

Cars don't cost 10x what they cost to make. The auto market is extremely competitive and most cars don't have large profit margins. For low end cars like Nissan Versa, Honda Fit, etc. often the manufacturer barely makes any money at all. They just sell those models to maintain marketshare/mindshare.

 

[actuarial]

Sorry dude, you don't know what you're talking about.

<snip>

You really think it costs LVMH 50x what it costs Adidas to make a bag? It is all about the user's willingness to pay based on their preferences.

How well do you think a hot pink, shit brown, and puke green fridge would sell? Black? They both have the same innards and the same $0.50 coating of paint on them.

You're actually making his point here. He says it's all based on what people are willing to pay, and nothing to do with cost to produce. He's still wrong though. In reality it's based on both things.

 

[Train]

You are forgetting the supply part of supply and demand.

What people are willing to pay depends largely on what's available in the market...

Wrong. Period, srsly, WRONG.

What you are willing to pay is what you are willing to pay, PERIOD.

 

[spidey07]

Wrong. Period, srsly, WRONG.

What you are willing to pay is what you are willing to pay, PERIOD.

True. But to deny the supply side is foolish if demand is high enough.

New game consoles are a prime example as are cars. Demand is strong enough, supply is low, price = high.

But that's a different discussion. Demand is high for SS appliances (people are truly stupid. OH! SHINY! WANT!), supply essentially unlimited = they can charge whatever they want up to what buyer will pay.

In this case you are correct, the buyer has set the price in an emotional decision of the shiny package being "better".

I've given home sellers my words on this "just because you have stainless steel appliances doesn't make me want to buy your house, I'm going to replace it all anyway. It's not a selling point."

 

[Train]

True. But to deny the supply side is foolish if demand is high enough.

Deny what? If the price is higher than what I am willing to pay.. then I don't buy. The shorter supply or higher demand has ZERO EFFECT on what my price point is. If YOU don't value SS appliances, then you are not obligated to pay for them. No one is making you put a higher value on something.

 

[spidey07]

Deny what? If the price is higher than what I am willing to pay.. then I don't buy. The shorter supply or higher demand has ZERO EFFECT on what my price point is. If YOU don't value SS appliances, then you are not obligated to pay for them. No one is making you put a higher value on something.

Humans are human. If supply is low they will automatically pay more.

 

[Doppel]

I still enjoy watching HGTV and some poor ass goes into a $115k house they are looking to buy and lament its lack of stainless steel.

 

[zinfamous]

my fridge and oven are made of clay.