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Unread 05-05-2013, 02:38
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Tristan Lall Tristan Lall is offline
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FRC #0188 (Woburn Robotics)
 
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Re: The 6 Week Build Season and 'Mentor Burnout'

Quote:
Originally Posted by Mark Sheridan View Post
In any of these cases, we would piss off our customers if we said," oh our demand was suddenly high and our supply is limited, so we are going to charge you more." So the supply and demand costs won't change.
Even if your company doesn't operate like that, things are more complicated if there are competitors and substitute goods.

I don't know if that's the case or not. If there are no competitors, then you're likely in the realm of market failure (in this case, monopoly) where traditional economic reasoning doesn't quite hold. Alternatively, in a competitive market, consider the possibility that another vendor will realize that you're out of stock and bid higher when approached by your customer (who has no pre-existing relationship that would tend to influence the price).

Also, I would take issue with treating a lot of the FIRST-specific market as fully competitive. I'm of the opinion that there are both good and bad reasons why total competitiveness isn't always desired by FIRST, the vendors and the teams.
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