[Avodah] profit margins

[Mike Miller]

[Is "brand name" an exemption from ona'ah? -micha]

On Mon, Oct 13, 2008 at 7:41 PM, herb basser <basserh at queensu.ca> wrote:
> Crocs are 50 dollars, knockoffs 10 dollars. I
> would guess they cost nearly the same to produce.

Possibly true, but it's worth noting that many brand names prices are
set (at least for the first few years) to recoup their development
costs. I doubt that difference in the case of rubber shoes is all that
great, but things like drugs certainly carry a large development /
certification cost (not to mention the profit required to offset the
many unsuccessful R&D attempts.

-- Mike Miller
Ramat Bet Shemesh