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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: starhawke who wrote (90051)	3/5/2001 6:17:50 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 132070

>>This would have fairly little impact on their business plan. The customers pay the sales taxes on their orders, not Amazon.<< we disagree about the negative impact of increased cost (the customer doesn't care who gets the money, just that they have to pay it). an increase in cost reduces demand relative to what it would have been - all else being equal. if 8.5% is so easy to pass on to customers, why doesn't amzn raise the price 8.5% if, as you assert, nobody cares? amzn knows they do. amzn doesn't want reduced relative demand, that's why. people disregard shipping? amzn disagrees (hey, a broken clock is right 2 times a day!). they refuse to take away free shipping on orders over $100 precisely b/c they know people watch shipping prices. simple economics. increase the net customer cost and demand drops relative to what it would have been w/o the extra cost, all else being equal. that is the price amzn must pay and it is a dear one.