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RE: High Price

"The Telsa model is something else altogether, (particularly Model S P85D), however they don't sell on the internet as far as I know."

The sales process involves quite a lot of internet. But you can (and should) schedule a test drive at the nearest showroom. The car, once you buy it, it usually delivered right to your door.

It's a pretty progressive sales model, and gets enough of the "high touch" part you can get whenever you are buying something that is very expensive, but much of the additional inefficiencies/costs/markups are avoided.

I am pretty sure that this could be modified to be a distribution model for nearly any expensive product that currently uses a lot of middlemen with large markups.

But the advantage of the current system is that when it is working, the salesperson tends to be knowledgeable, has made an entrepreneurial investment in his or her inventory, and also can offer multiple options for a consumer right in their showspace.

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But as far as the rest of the communication you put towards me - I will say the following: Stereo systems were once normal consumer goods that was widely bought - a little like how television and computers are today.

Now? Most stereos are better characterized as a luxury good, not a regular piece of consumer electronics. As such the volumes are low, and the margins & markups are high. For a large company - say the size of Panasonic - this means they can be highly profitable. For a small company - say a company operated by a couple of people only - they can survive. It also can tolerate a distribution system with one or more middlemen each with large markups. If a stereo system was a mass market style of consumer good, rather than a luxury good - the volumes would be higher, the profit per unit sold would be lower, and the cut for middlemen would be lower. The price for the component would be closer to the parts cost than it is today for a "high end" stereo component.


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"You are precisely as big as what you love and precisely as small as what you allow to annoy you." ~ R A Wilson



Edits: 02/25/15 02/25/15

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  • RE: High Price - Bromo33333 09:22:05 02/25/15 (2)

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