The Stealth Hippopotamus: No company pays taxes. It's just rolled into costs of goods sold and passed on to the end user.

Same with regulation fees and government permitting.

Hell I roll the cost of tolls into the costs.

For about the millionth time, this is not how companies set the prices for goods.

The prices for goods (other than purely fungible commodities) are set by whatever gives us greatest return on the market.

When my company is making Widget Plus, we don't add up all of our production costs, taxes, etc, and then say, "And we'll add a 40% profit margin on that, and just hope people want to buy it at that price!"

We extensively research what price people will be willing to pay for a product before we begin selling it, and then target to price to maximize profit-- for some items, this means setting a very low individual profit and making it up in volume, for others it means setting a high price, shrinking the market but keeping individual sale profit high.

If an additional cost comes about during the process, we raise the price of the product as the absolutely last resort. We attempt to find an efficiency elsewhere, remove a feature that's costing the extra expense (and perhaps even lower the cost, then), or simply accept a smaller profit margin.


Why the fark people keep posting the ridiculous idea that companies just charge "cost + X" for a product, I have no idea. You make yoruself look like an idiot every time you do so.

/all corporate taxes should be abolished.

Obdicut: If an additional cost comes about during the process, we raise the price of the product as the absolutely last resort. We attempt to find an efficiency elsewhere, remove a feature that's costing the extra expense (and perhaps even lower the cost, then), or simply accept a smaller profit margin.

Or, I might ad, we just cancel the product.