On 12/11/2010 12:58, Sylvia Else wrote:
On 12/11/2010 11:43 PM, Martin Brown wrote:
On 12/11/2010 12:14, Sylvia Else wrote:

The market determines where the price lies between cost and value, but
the price still has to lie between them. If it doesn't then either
sellers are losing money on the sales, or purchasers are paying more
than they believe the thing is worth. Neither scenario is going to occur
in the normal way of things. People sometimes make mistakes, and
sometimes things are sold below cost or bought above value for ulterior
motives, but in the main stream the price cannot lie outside the limits
of cost and value, because people are not that stupid.

They are *exactly* that stupid. I take it that you have never heard of
any of the "Designer" Brandname products that are priced way beyond
their intrinsic value or cost to manufacture. People will pay insane
amounts of money for a trendy "Name" on their clothes, perfume etc.

What you're saying is that people have different notions from you as to
value, and I'm inclined to agree that the values people attach to some
products beggars belief. But people people don't pay above the value
they perceive.

Agreed. They are tricked into perceiving a higher value by clever brand
management, coupled with sophsticated advertising and slick marketing.

The most recent insanely overpriced "green" thing I saw was a hedgehog
home at £50. It must have cost all of £1 in materials and labour to
make. Some people have "sucker" stamped prominently on their foreheads.

A person may buy a rainwater tank because it makes them feel green (and
they like that feeling). If they do that, then that feeling is what
makes the value higher for them.

At least in the UK small ones are cheap and the rainwater is much better
for lime hating plants like my orchids. I also have two plastic dustbins
I scavenged for nothing. When I lived in Belgium the house had built in
rainwater collection from the roof to bulk underground storage 3x3x2m
and also for the greenhouse with a 2x2m open sump 1m deep. Basic
reinforced concrete construction with an additive to make it waterproof.
Yes it costs money to dig a hole and line it with concrete for water
storage but compared to building a desalination plant it is peanuts.

Using potable water for watering plants is utter madness. I thought
Australia was actually ahead of the game in using recycled grey water
irrigation in its gardens - at least in the parts I have visited.

But if they're simply trying to obtain their water for the lowest
possible expenditure, which is the situation we're discussing, then the
value is the lowest price they can get, and desalinators will win over
rainwater tanks because it is not possible for rainwater tank makers to
offer a price that competes with desalination. Any price that would
compete would be below the cost.

You can get rainwater tanks in the UK for about 17p/L of storage if you
shop around for several hundred litres of capacity.

Desalination is a relatively expensive energy intensive process unless
you can harness the sun to do it for nothing.
How much does your desalinated water cost?

Regards,
Martin Brown