[Avodah] profit margins

[herb basser]

[I'm forwarding three Areivim posts in hopes to start a discussion
(again) on the topic of proper pricing in halakhah and onaas mamon.
-mi]

A few observations, 

Actually-- profit margins could be halachicly 1000% (beis din does not
set prices today) if all merchants set that price and onaah occurs (not
too rationally) for the aruch hashulchan both at 1/5 over the going rate
(if he charged you exactly that) and again-- yes again (A.HS claims in
the interest of fairness to minimize the effect of a double rate-- but
still keeping the halacha like shmuel!)-- at 1/6 over the same going rate
(if you were charged that), in between the two points is bitul mekah (if
you were charged that)-- get your money back, before the 1/6 rate you are
moichal the overcharge. On the dot of 1/6, 1/5 you get a refund of the
onaah. Over the 1/5 rate is again bitul mekah. Contemporary pesak sets
only one rate at 16%-- its true that the gemoro in hazahav says people
expect to pay more for clothes than for food but contemporary pesak
applies to everything that has a going price (excluding dollar/cut rate
stores etc). The plia is that at one point the deal is canceled and at
a higher point than that the deal is not canceled. I Think contemporary
pesak is to refund the onaah up to 16% and after that to get a full
refund. This is not kedin gemoro-- and you only get an hour or less to
complain so can you show it to mavin uncle shloimy who will tell you if
you were ripped off.-- But these rules are not based on profit margins--
but on going market rates. Crocs are 50 dollars, knockoffs 10 dollars. I
would guess they cost nearly the same to produce.

Zvi