Skycaddie subscription........

[Leftie]

The main reason for high cost electronics, is that thing mentioned earlier greed. Both from the consumer & the manufacturer, knowing the vanity of the general public. We feel we have to have the bright new model that does very little extra, because its new & slightly different looks, even though the technology under the skin is usually very similar.

Greed & Vanity.

Oh! Electronics - phones, satnavs, GPS devices etc.

Sorry. For a moment I thought I was on a golf forum talking about the latest sexiest drivers and irons. Silly me

 

[Cernunnos]

Oh! Electronics - phones, satnavs, GPS devices etc.

Sorry. For a moment I thought I was on a golf forum talking about the latest sexiest drivers and irons. Silly me

Normal service will be resumed as soon as possible.





FORE>>>>>>>>!!!!!!!!!!!!!!

 

[USER1999]

Manufacturing costs don't drop half as quickly as you think. Also, to brand manufacturers as greedy is a bit wrong too. Most operate on a fairly fixed margin, but I remember working on something for boots the chemist a long time ago, where the most they would pay was £2.50 for something they would retail at £18.99. That meant we had to make it for about £1.75. That's greed for you. We made a somewhat greedy 75p.

 

[Twire]

Manufacturing costs don't drop half as quickly as you think. Also, to brand manufacturers as greedy is a bit wrong too. Most operate on a fairly fixed margin, but I remember working on something for boots the chemist a long time ago, where the most they would pay was £2.50 for something they would retail at £18.99. That meant we had to make it for about £1.75. That's greed for you. We made a somewhat greedy 75p.

I totaly agree Murph, the manufacturer takes the smallest slice of the cake. Everytime a product goes through a set of hands the price doubles (everyone wants to double their money)

I used to manufacture a golf product, it cost us just under £5 to make and sold for £16. We couldn't get anyone to take the product on because they wanted to buy from us for for half of our manufacturing cost.

 

[Herbie]

There is sometimes a difference between listed manufacturer and the actual component makers who can be numerous.

A mobile phone will be indicated as one manufacturer yet in reality its many makers of components, so it depends where you address your letter!


Everyone in business is greedy, just because many cannot fulfill their greed potential does not mean it isnt there, people go into business to make money.

If you made a product for £5 and it sold for £16 you have a profitable product figure in my view, maybe the business model needs looking at or maybe those who could sell it couldnt sell it at £16.

Where Murph defends the non-greedy, he then gives an example of the greedy.Purchase power by Boots means you sell loads cheaply and make a small profit yourself or you dont sell at all and make sweet FA. Being a manufacturer is a difficult business to be in in the western world, Im sure if murph had got his product made in india there would be more than 75p in the kitty, Im equally sure that if murph could get all his costs halved during production, he wouldnt ring boots and say 'you can have these cheaper now, Im happy with nett 75p a pop,' would he?

 

[Herbie]

Sky Caddie map from the ground, and that was the OP.

We move a lot of bunkers about, so that is important info (if you use this function).

HNJ, you haven't got a clue. It is impossible to make a mobile phone for £60, even if you made 1000,000 of them. I price this sort of stuff every week in China. The phone companies make a significant loss on hand sets, and the fact they don't get their money back from you just shows how much they are making from others. Try buying your handset in HongKong. My free in the UK Motorola V3 razor was £600 retail in HK with no contract. This is the real world price. I remember pricing it up, as I wanted one, and O2 wouldn't give me one on my £12 per month tarif, but would if I changed to £20 per month. I still couldn't work out how they would make any money, but that was the case.

Thanks for telling me I havent got a clue Murph??? Isnt it me who has a phone for 60 quid and not 300, and does my use of said phone cost me more than others (including the £10 free top up I get now and then)or similar cost? I would never suggest you dont have a clue murph because Im not that insulting or arrogant, but I could buy componants and make a basic mob phone for less than £300 retail. (When I say I could make it I do mean my pal who is an electronics genius could) The only thing that makes this product so expensive is the fact that businesses are locked in to each other so tightly there is a monopoly being ignored, as well as pricing wars for market share, but all the major providers are rolling in it Murph, make no mistake about that, and you gave a clear reason in your boots commenst and the 75p.

 

[Twire]

If you made a product for £5 and it sold for £16 you have a profitable product figure in my view, maybe the business model needs looking at or maybe those who could sell it couldnt sell it at £16.

That is a very simplistic view. We used to advertise in a golf magazine at a cost of £1200 per quater we used to also pay barclays merchant services £25 per month for credit card services then there was post and packing.

So now we are looking at selling 120 units to break even..doesn't look so attractive now does it?

 

[Herbie]

If you made a product for £5 and it sold for £16 you have a profitable product figure in my view, maybe the business model needs looking at or maybe those who could sell it couldnt sell it at £16.

That is a very simplistic view. We used to advertise in a golf magazine at a cost of £1200 per quater we used to also pay barclays merchant services £25 per month for credit card services then there was post and packing.

So now we are looking at selling 120 units to break even..doesn't look so attractive now does it?

Only as simplistic as your initial post on this.When you have limited information as i still do, you get limiuted response.
And my comment on business model still stands if you have to sell 120 units just to break even. One reason I sold my business in the past as a going concern was purely down to the ammount of effort in relationship to reward, always breaking even or minimal profit was not business for me, just hard work for nothing.