Three Factors That Go Into Determining The Price Of Toothpaste

Going through the counters where the various toothpaste brands are stacked in a typical

departmental store, one can't help but notice the considerable price differences that exist between the various toothpaste varieties. This applies even for similar quantities of toothpaste; so that 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 is the normal brand to brand pricing difference (which manufacturers also use for marketing purposes) and ignore it, were it not for the fact that the some of price differences we see can be very substantial, so that one brand of toothpaste costs as much as 50% more than another brand of the same quantity of the same product. When the critical thinker encounters these degrees of difference, their mind goes abuzz - because there must be something we are not seeing.

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

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

2 ) Another factor that plays a major role in determining the price of toothpaste is 'who' the makers of the respective toothpaste brands are. The big manufacturers, who have established a name for themselves strong client bodies made up of people who truly 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 branding in business parlance) costs money - and this is money that final buyer of the product pays, hence the differences in pricing.

3) Yet another factor that plays a major role in determining the price of toothpaste is the ingredients that go into the making of the toothpaste. It is true that the basic ingredients that go into the making of a toothpaste remain more or less the same across board, but there are other 'add-ons' that vary from product to product, and it is those that can cause the price differences we seen in the different varieties of toothpaste.

by: James Maloney

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