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Tubes Asylum Questions about tubes and gear that glows. FAQ |
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Tubes Asylum Questions about tubes and gear that glows. FAQ |
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In Reply to: Maybe not... plus limited knowledge smear. posted by Victor Khomenko on February 25, 2000 at 06:21:21:
Take it to email. Enough is enough.Joe, I know you know the answer to the question. It's called value pricing. You charge what the market will bear in the absence of competitive forces.
Victor, I can't ask you to reveal BAT's business and cost structure on a public forum, but without data, defending it is going nowhere.
Both of you are getting to close to spiraling into personal attacks.
Not to belabor the point, but let me back into the cost/price thing. Assuming that BAT sells the tubes through their dealers, the dealer cost would be $55-60. Typical markups would put BAT's cost in the $25-30 range.
Let's say for round numbers that their cost is really $10, an investment of around $1M. Replacement tubes won't be required for 3-5 years so you have to add storage and cost of money to the equation. Real cost in 5 years might be up to $15. Based on real costs, perhaps a retail in the $60-75 range represents a reasonable markup. But there is no other source.
But what if you have to hold these for 10 years or more? Costs rise. What price would you pick Joe?
I don't mean to invite more discussion on this issue. Victor isn't going to post their cost structure so we're back to circular agruments. Let's leave it at that and let the market decide whether it's price gouging or value pricing.
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Follow Ups
- Come on guys...... - Rod M 07:02:27 02/25/00 (1)
- Sorry for waking you up at THAT early hour... - Victor Khomenko 07:30:06 02/25/00 (0)
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