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  #9  
Old November 11th, 2004, 11:03 PM
Miguel Cruz
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Cyrus Afzali wrote:
With the mini bar, I don't think they're willing to take the risks
lower prices would entail because they'd be afraid margins would drop.
They're very expensive to maintain, given that every item has to be
catalogued and checked every day for consumption. The costs associated
with that don't drop over time, so once they've figured out a price
point that will allow them to achieve the revenue and profit they
think is worthwhile, they're not going to easily move it.


Cataloging and stocking is pretty much a fixed price.

If they can get a lot more volume at more reasonable prices (and I'm sure
they could) then they will earn more profit.

miguel
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