how products are priced?
Is it mere theory or is it common sense and sound logic that a product is priced according to how much research and development goes into it? Apple for instance makes a generous profit for their products but they also spend a lot in research and development. Their head engineer makes millions to design their products and that goes beyond just jony Ives. Look at pharma, they charge an arm and leg for new drugs. So if that theory holds true why doesn't a product keep going down in price when it has been reproduced for a number of years? Off the top of my head, cars. In its entire life cycle the price does not fluctuate much only when they introduce a new redesign and they want to jetison the old.
So how much does RnD factor into the price of a product?
So how much does RnD factor into the price of a product?