I don't think it is out of context in regards to your reasoning. I disagree with the statements 'if he can't make it up in volume', 'detailed design', and 'sub-contracted local experts' as a rationale to raise the cost.
Thanks for the reply. I hope you can see how when the only thing you quote me on is "I'm of the opinion that $250 is actually unrealistically low" without any specifics of what I based that on and then come back with some wise crack about 'I never argue with lower price' that I think that's taking my quote out of context (by removing all the context from my original post)?
I didn't make the claim this
raised the cost, rather how it
justified (IMO) the price asked. Big difference. I get it it didn't meet the $150 estimate, but that was an
estimate. I look at it the other way I guess. So you don't think he's depending on future volumes (at we're now told at the same price) to recover his investment? Or that the design is not detailed/complex and that doesn't raise the cost of production? Or that using outside design efforts incurs extra costs and risks (potential problems he won't be able to resolve without more outside support for instance) doesn't impact the 'cost of goods sold'? We definitely disagree there I guess. I think those are all real, traditional, factors.
I agree that from a Free Market standpoint the price will lower the demand. IMO as it should. There is no doubt in my mind that S&B could do a huge volume and go broke with $100 Volcanoes.......
I'm assuming when you said 'raise the cost' you meant cost to buy, the sale
price. IMO there's no question that such things raise the cost of making the product. It's that cost (to make and offer) that drives at least part of the pricing decision. You're right that the market will determine if the product at that price is competitive enough to be successful. Time will tell. I hope it is.
Thanks again, I think we're looking at this from different sides. You seem to view it as a consumer, focused on the price you have to pay against your expectations? I see it from the 'how much does it cost to bring this unit to the market', if that's too high it will fail, if not.....
I still think VM will take a serious hit at $250 if the volume is too low. His costs are just too high to allow lower pricing. Selling just a few at that price is unrealistic. You go broke that way. He's taking a real risk.....and knew it from the start. I wish him (and therefore us) good luck. He's got my money, or will have it in due time, but it'll take a lot more customers at $250 to 'break even', lower that even a bit and the number of needed customers goes up sharply, lower it too far an no volume will save you. Basic Bean Counter stuff.....bless 'em.
OF