Posted by Joe Baker on November 19, 2002 at 16:37:13:
In Reply to: Re: Re: Re: Expensive Mouthpieces vs. Old Standbys posted by Rick Denney on November 19, 2002 at 16:06:54:
Rick, I am MISTER market forces, but there are times when cost of production limits the ability of the market to move prices lower. In other words, if the cost to produce and distribute a Bach 18 is $50, then all those formulas will NEVER yield a price of less than $50, because then there would be no profit, but rather a loss. If all tuba players were to decide tomorrow that $50 is just too much to pay for a mouthpiece, and we'd rather quit than pay $50, the price might briefly fall below $50, but it would be a clearance price because the company would stop production. The company will exit the business if the price falls below production cost (with the exception of products that a company decides to sell at a loss for less-directly-economic reasons: goodwill, reputation, etc.).
All I was saying is that if the cost is lower to produce and distribute a french horn mp than a tuba mp, that price floor is also lower, and the mass producers will run those same formulas and come up with a lower price to maximize profits. In that regard, the higher costs of developing a tuba mp DOES cause a higher price.
I also understand that, by producing a lower volume, companies like Monette keep the demand higher than supply, which keeps the price high. But we come back to my original point: while a Monette might be THE right mouthpiece for a particular individual, and as such worth the money to him, that doesn't seem to me to make it a generally better mouthpiece.
Joe Baker, who believes in the power of the market with his whole heart.