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Thoughts? Ok, I think your post is idiotic.

208.191.24.222

Posted by BillC on March 22, 2000 at 17:36:04

In Reply to: Fun Manufacturer's Cost Questions... posted by truthseeker on March 22, 2000 at 10:11:03:

>>> What percent of dealer cost would you guess...

And the operative word here is most certainly guess. I guess I just don't know, any more than you or anybody else that isn't involved with whatever company you're referring to would know.

>>> eliminates dealers, distributors, and most advertising costs, what do ya think he should charge for his products?

What should he charge, or what will he have to charge to stay in business? If what you itemize is eliminated, chances are he'll have to charge a hell of a lot to make enough profit on 3 sales per year to stay afloat. In the economy of today, and especially in high end audio, international sales are required to stay afloat. Try that without a distributor. And yep, getting rid of advertising is a sure way to spread the word. It's what most companies filing bankruptcy did 1 year prior to their final demise.

>>> I believe these questions will be more important to both consumers AND manufacturers in the coming years.

More important than when? Now? 20 years ago? The dawn of capitalism? Has it possibly occurred to you that in a (mostly) free-enterprise economy, price is a function of value, nothing more and nothing less? Those that price their products above the value assigned by the consumer base will cease to exist. Those that price their products below the value assigned by the consumer base will thrive and grow. The cost of manufacturing determines only one thing: when the product is priced to meet or exceed assigned value (and thus bring about sales), does the result bring a profit or a loss?

I'm guessing that your last statement is kind of your point, but the fact is that you either have no point, or could benefit greatly from a basic course in economics.

BillC

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