Simple economics 101 “supply and demand” curve analysis. By limiting supply, a producer can increase demand and obtain a higher price. Once supply meets demand you reach equilibrium. To sell more units (increase supply) you have to drop your price to create more demand. For instance, once everyone that is willing to pay $200 for a razor has one, you can’t sell any more since demand is met. If you then drop your price to $150, you then start selling more razors to people that are willing to pay $150 etc etc. Think about Wolfman razors where production/supply is extremely limited; the razors sell between $500-1000. If Karve and Wolfman stared making 10,000 a month, they would no longer command such high prices. However, anyone that wanted one would be able to get one. Therefore, a manufacturer has to find equilibrium between supply and demand. Seek a price where demand is met but still provides a decent profit and you can stay in business.Or maybe more people would buy one.
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