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Three Factors That Go Into Determining the Price of Toothpaste

Walking through the counters where the various toothpaste brands are stacked in a typical department store, one cannot help but notice the considerable price differences that exist between the various toothpaste varieties. This is true even for similar amounts of toothpaste; so you can find 50 milligrams of brand X costing more, considerably more in fact, than 50 milligrams of another brand Y. We could assume it’s the normal brand to brand price difference (which manufacturers also use for marketing) and ignore it . , if it were not for the fact that some of the price differences that we see can be very large, so that one brand of toothpaste costs as much as 50% more than another brand of the same amount of the same product. When the critical thinker encounters these degrees of difference, their mind boggles – because there must be something we don’t see.

Now we all know what the basic function of toothpaste is. And we know that all varieties of toothpaste work more or less the same. You apply them to your toothbrush, to form a foam with which you brush your teeth. So how is it that there can be such significant price differences between different toothpaste brands? In other words, what determines the price of toothpaste?

1) Well, one factor that plays an important role in determining the price of toothpaste is ‘where’ the respective toothpaste brands are made. As with most other manufactured products, we are seeing a trend where products made in the east can come at significantly lower prices than products made in the west. This in turn is due to the fact that you simply cannot even begin to compare things like the cost of labor (an important factor in factory production) between the east and the west. Eastern workers will gladly work for a very small fraction of what their counterparts would consider a pittance. (Note that they work for part of the misery, not even the misery itself). This ends up being reflected in product prices, as is the case in toothpaste here.

2 ) Another factor that plays an important role in determining the price of toothpaste is “who” are the producers of the respective toothpaste brands. The big manufacturers who have established a name for themselves with strong customer bodies made up of people who really trust their products can afford to sell their products at substantially higher prices, and still attract people to buy those products. The ‘name building’ itself (which is called a brand in business parlance) costs money – and this is money paid by the final buyer of the product, hence the differences in price.

3) Yet another factor that plays an important role in determining the price of toothpaste is the ingredients that go into the creation of the toothpaste. It is true that the basic ingredients that go into the manufacture of toothpaste remain more or less the same across the board, but there are other “additives” that vary from product to product, and are the ones that can cause the price differences. we saw in the different varieties of toothpaste.

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