Mark Roberts wrote:
> Adam Maas wrote:
> 
> 
>>The costs aren't due to limited supply of 
>>lenses compared to demand, but due to the inherently higher costs of 
>>doing short production runs and higher per-unit profit requirements to 
>>make the product viable.
> 
> 
> Mike J wrote very cogently about this just a couple of weeks ago:
> http://theonlinephotographer.blogspot.com/2006/09/smart-and-dumb-prime-lenses-103_16.html
> 
> "Imagine that it costs $250,000 to develop a lens — design it,
> engineer the parts, construct and test a prototype, etc. Cost of
> manufacture, above and beyond the development cost, is then $100 per
> unit. If you know you're going to sell 250,000 units, then the cost of
> each lens is $101. But if you know you're only going to sell 5,000
> units, the cost of the same lens is $150. Now imagine that you don't
> know how many units you're going to sell — you might sell 5,000, or
> you might sell 1,000 or even fewer. Your break even cost could be as
> high as $350 per unit."
> 
>  

Which is correct, but ignores the rest of the issue (Per-unit profit to 
cover other business expenses) which make the difference even larger.

-Adam


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