Ink

I just spent $80 on ink cartridges for my printer. The lad at CVS had to get a key from a locked drawer behind the counter in order to release them for me. I’ve had an easier time purchasing cigarettes.

Theft is a risk because there is excess demand unmet at the price asked.* Counterfeit goods are a risk for the same reason, and because the cost of manufacture and distribution is so much lower than the price asked that even at cheap street prices the product is still profitable.

The same applies to Coach bags, Guggi purses, Ford auto parts, and Rihanna’s latest hit single. It might apply to the Apple iPhone, but Samsung prices the Nexus as a premium product.

* if demand exceeds supply at the price offered, then there is unmet demand, and thus lost profit. Lower the price, let the supply meet the demand, and reap the benefits.