I haven’t seen this one discussed on Orchid (as Dr. Aspler says, our
daily dose of Orchid – reminds me of the old song, “… as regularly
as coffee or tea, it’s gettin’ to be a habit with me”). Here 'tis:
Somebody told me that he prices his labor on gold items at 50 percent
more than on silver. Why? Because the market will bear it. Example:
I make a silver item in an hour, charge $5 for shop overhead, $5 for
the silver, $20 for labor, total $30. I make the same item in gold:
$5 for overhead, $200 for the gold, $30 for labor, total $235.
Customers look at the two pieces, and they may bargain with me in the
usual way, but it’s unlikely they will say (or think), “The gold one
is over-priced by about $10.” The market will bear it (and you
increase your paycheck by 50 percent) because the labor is a small
proportion of the metal value. Multiple choice question: This is: (a)
smart; (b) unethical; © common practice; (d) off-base; (e) any
combination of the above; (f) other – fill in the blank _______.
Andy Crosby @Andrew_Crosby