Originally Posted by BlackandDecker
if the economy is effed up, why would manufaturers overprice their cards? No one will buy em.
If that were the case, why would the prices on just about everything be going up? It's simple. It doesn't matter if people can afford it or not if the company can't make their profit numbers. If it costs Mcdonald's $10 to make a burger they aren't going to charge you $3. They are going to charge you $13. If the market can't handle it they will close up shop or try to sell something else they can make money on. Normally these prices increase in small increments, which is inflation. However, in bad economic times they tend to increase at a greater rate than inflation. This is the main reason why the earning power of the dollar is down a ton. A dollar does not buy you as much as it did a couple of years ago. If healthcare costs at the plant go up, then the price of what they manufactur goes up. If the gas for the tractor trailor goes up, the price of the delivery goes up. The ulitmate price is paid by the consumer as it is the last stop for the product. Typically they will not raise a price so drastically to scare the consumer base. They could easily price it at $525, and still be confident people will buy it. Maybe they plan on overpricing the Titan, (hardcore enthusiast tend to spend the money even in harder economic times), and using the money to offset any raise in prices.