With some companies I suspect that there's contacts and stuff on what prices to set for items. But I can speak from personal, hands-on, experience that at work no one tells me what price I can set for stuff.
You mean like the Manufacturer Sale Price? (MSRP?) Yeah, I suspect it's there for a reason. It's the bar they expect it to be sold at, with retailers being allowed to sell lower and higher than it. Depending on the product, it will depend how much more someone is willing to pay for something above that price.
Well, there's some things I'm "locked into" as far as the price is concerned but this by the manufacturer -a lot of Kraft items are like this. The biggest thing is when there's an "MSRP" printed on the packaging it pretty much ties my hands on how much I can charge which sucks because this price is usually pretty close to the retail meaning I make almost nothing off of it. Some Kraft items with a "Suggested Price" on it I make like 10% off of. I theoretically
could charge more but I'd hear countless complaints from customers seeing two different prices -one on the packaging and then one on the shelf labeling/receipt.
But, in the end, there's no authority that tells me what I can and cannot charge, the
market controls that. Food is not a commodity at least not like precious metals or fuel.
If someone doesn't like my prices they don't buy and they move on. If someone doesn't like the prices of concessions at the movie theater they just don't buy them.
No one is forcing them to buy concessions. If you want to rant about the mark-up the concessions have over what you can get in a store then how about we talk about the price of the movie itself? A movie ticket costs around $10 (depending on the time of day and your age group, though) About 10x what that movie will cost out of a RedBox in a few months.
Is
that price gouging?
Movie theaters have to turn a profit and they don't make any money off of the movie ticket. And they're sure as hell not going to cover wages, utility costs, taxes, and a all of that by charging 50c for a bag of M&Ms.