Monday, November 19, 2007

Price of Admission

The humble toothbrush. Used to be cheap, now is elaborate and expensive. No plain-vanilla toothbrushes exist anymore: they only come with special strips that show when they need replacement, ergonomic handles, specially-contoured brushes. And the entry cost into the new cool toothbrush zone is over three bucks each.

Reflecting the inverse relationship between cost and number sold (the more expensive the item, the fewer units sold, but usually at a higher profit) there may be fewer toothbrushes sold.

Wal-Mart has embraced this strategy while trumpeting that they are the "low-price leader." Ha.

WM only carries name brands---sure, they may have good prices on that name-brand item, but you are still paying for advertising budgets, etc. Your name-brand bagels at $2.78 in Wal-Mart as opposed to Kroger brand bagels for $1.83.

And, it doesn't get you out of the toothbrush conundrum: why is something that is cheap all of a sudden expensive? Cow solved the problem by finding, one shelf down, a nifty electric toothbrush with two swirling heads, batteries included, for $5.99, less than the cost of two regular toothbrushes.

Moo!

10 Comments:

Blogger Webmaster said...

That's a steal, for the electric brush, I mean.

9:21 AM  
Blogger Webmaster said...

...And I've wondered the same thing about throw pillows. Why is it that you're charged $30 or $40 for something that costs $2 to make?
??

9:21 AM  
Blogger The Topiary Cow said...

Yes....Sandi is right about the pillows...and the toothbrush.

Cow is happy with the new toothbrush, with two rotating heads you get through twice as fast!

Moo!

1:45 PM  
Blogger Supermom said...

these stupid new 'high tech' toothbrushes drive me crazy! Well, more so, my husband...I bring him home some (cause he changes them out like they were underwear) and he gripes, "I just want a plain toothbrush!"

Well sorry!... they don't make 'plain toothbrushes' anymore!

10:22 AM  
Blogger The Topiary Cow said...

Yes, true. Cow would like to know WHO the High Commissioner of Toothbrush Design is that decided all of a sudden that these are the only ones we can buy anymore...

Moo!

12:19 PM  
Blogger watercolordaisy said...

Sandi, because people will pay it. Because it has more value to people if they pay more. And, because it has $2 worth of materials, but it cost $3 in labor to make, $3 to pack and ship, $2 to stock, $1 to price, and contributes $3 towards the salesclerk's and company staff's salary. The rest is profit used to pay for new product development and, lest we forget, to pay stock holders in the form of 401k dividends for their retirement accounts. :)

3:42 PM  
Blogger watercolordaisy said...

and I made up all those numbers... lol. Just making the point... :)

3:43 PM  
Blogger watercolordaisy said...

Colgate still makes a pretty basic toothbrush.

3:43 PM  
Blogger Webmaster said...

It's a good point, but it still feels like a needless markup. Like with ice cream and breakfast cereal.

6:29 AM  
Blogger The Topiary Cow said...

The same for hospital bills. You're not paying the actual cost of your stay...you're paying for all the people who go in there who don't pay.

Moo!

7:08 AM  

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