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In Reply to: $3,350 later the book remains open. posted by GEO on January 30, 2008 at 18:29:53:
geo,
i would like to thank you for posting this, fremmer's vsm m conclusion. i have not read it in a while.
vsm m pricing actually took effect in the end on 1999. and as i told you a few weeks ago, we were trying to lift the prices so we could make a fair profit over what was made on our early offernings (where no profit was made at all to get a foot hold). that being said, if you do the math and see that a 3.5 time mark up is from $1000 to $3500, this price increase reflects an additional $1000 in material cost and overhead. have we had this increase? hell yes and then some! between the cost of the euro almost doubling and everything else going up, my last price increase of january 1, 2008 or 10% just put us back at 3.5 time mark up. consider the difference in my cost and the associated mark up to the dealer, neither the dealer or merlin is making any more on the product. costs are costs and that is a realistic point of view. i certainly appreciate they sell for more but i need to stay in business.
right now (not knowing what will become avaiable in technolgy) i think the vsm is far beyond what i ever expected it to be, at the pinnacle of its performance if you will. i have nothing else planned and may start on another project before i get too old. :-)
best,
b
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Follow Ups
- RE: $3,350 later the book remains open. - Bobby Palkovic 06:38:31 01/31/08 (2)
- RE: $3,350 later the book remains open. - GEO 07:12:48 01/31/08 (1)
- RE: $3,350 later the book remains open. - Bobby Palkovic 07:51:52 01/31/08 (0)
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