Martyn
Supporting Sponsor, Overland Certified OC0018
My rant.
I find the discussion on price interesting. I think it's been clearly laid out in the discussion what the cost involved in producing small run CNC products are, and the sale price seems to be reasonable.
To state that the product is too expensive and to then list less expensive items purely based on price is distasteful. The discussion had to be lead to a more informational based discussion based on the merits of the product. This should have been the starting point of the discussion.
Pricing seems to be an issue we are quickly willing to quickly point a finger at, and the finger pointing usually is devoid of any analysis of the situation.
For this product, in addition to the raw materials, CNC time, programming time, R&D time, Soildworks time, you need to add in; office and warehouse space, admin, utilities, workers comp, product liability insurance, and a profit margin, then you get a feel for the cost benefit analysis.
Broadly I'd state that criticism on price is leveled by people who don’t created and produced anything. Have no experience in manufacturing, and the costs involved in getting a product to market.
I would challenge you to do some analysis on your own work and see if the end product if fairly priced. What's involved in running an auto repair business, and does it justify the $90.00 per hour shop time. How about you IT guys, does the final cost of your software reflect a reasonable profit, or the Tradesmen amongst us is the final bill given to the consumer fair when you take everything into account?
Finally I'd like you to think about going into your local hardware store to buy a 1/4" bolt. When you pay 6c for it think about the fact I'm buying the same thing for 2c, and become outraged because the hardware store is making in excess of 200% profit on your purchase.
I find the discussion on price interesting. I think it's been clearly laid out in the discussion what the cost involved in producing small run CNC products are, and the sale price seems to be reasonable.
To state that the product is too expensive and to then list less expensive items purely based on price is distasteful. The discussion had to be lead to a more informational based discussion based on the merits of the product. This should have been the starting point of the discussion.
Pricing seems to be an issue we are quickly willing to quickly point a finger at, and the finger pointing usually is devoid of any analysis of the situation.
For this product, in addition to the raw materials, CNC time, programming time, R&D time, Soildworks time, you need to add in; office and warehouse space, admin, utilities, workers comp, product liability insurance, and a profit margin, then you get a feel for the cost benefit analysis.
Broadly I'd state that criticism on price is leveled by people who don’t created and produced anything. Have no experience in manufacturing, and the costs involved in getting a product to market.
I would challenge you to do some analysis on your own work and see if the end product if fairly priced. What's involved in running an auto repair business, and does it justify the $90.00 per hour shop time. How about you IT guys, does the final cost of your software reflect a reasonable profit, or the Tradesmen amongst us is the final bill given to the consumer fair when you take everything into account?
Finally I'd like you to think about going into your local hardware store to buy a 1/4" bolt. When you pay 6c for it think about the fact I'm buying the same thing for 2c, and become outraged because the hardware store is making in excess of 200% profit on your purchase.