Every time this topic comes up of excess profit.....I think of Chuck Taylor All-Star tennis shoes.
As a kid, they were available in rural Alabama for around $12 (early to mid-1970s). Out of this....the store probably took a $1.50 profit angle, and transport probably ran in the 50-cent range. Actual cost of making them.....in Asia? Probably at that point in the $6 range. So the company probably was taking in the range of $4 of profit. Adding to this.....the 6-percent state and local sales tax, on top of the sales price.
Today in Germany? The high-top red Chuck Taylor tennis shoes run at 55 Euro (tax added already into the price). The Asian company with the profit? it's probably 20 Euro minimum, but even the store-front is taking a 5-to-10 Euro profit onto this.
Some of the upper quality or 'look' CT-shoes will even run 75 to 100 Euro.
Yes, all of this from a simple design....which you can probably make for about 20 Euro, in some sweat-shop in Asia.
The problem is....who will be the 'judge' over this, and just how much profit will you allow the shipping company, the sales-front store, and the manufacture side? And why is your judgement better than other people?
I got fixated on this trend back 25 years ago, as my son got into Dragonball-Z cheapo shirts....made of 100-percent polyester. It was a 7-Euro shirt which the stores refused to sell for less than 25 Euro each (when it was trendy). It was stupid to me to spend 50 Euro on two of these shirts....which were a stupid design and cheaply made (neither lasted more than a year). Someone stepping in to prevent excess profit? No.
There is a point to the excess profit angle, but you open up a lot of doors....which people just never considered before.
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