radish;462477 Wrote: > Maybe, but I bet they sell an awful lot more Touches than wall mounts, > hence the fixed initial costs have to be spread out over fewer sales. > > In other words, it's not how much it cost to make but how useful it > will be to you which should decide it's price.
The entire argument that I was combating was that the high price is justified due to the sunk costs in development of the unit. I said the same thing as you, that in this case, the cost is PURELY driven by marketing assigning what they think people will pay for it -- which is why everyone is angry. I agree they will sell more touches, but look at it this way. The touch likely had multiple engineers working on it, (I would guess 1-2 for hardware, 1 for mechanical, 1 for computer software, and 1-2 for internal programming), had a longer development time, higher tooling costs, and much higher per unit cost...They HAVE to sell a lot more of them. The bracket takes minimal sunk cost in comparison. Lets say they spent 100k on the thing for development and tooling. They have to sell a whopping 1000-1500 of them to make their money back. I hope for Logitech's sake they sell more than 1000 of a product. Phil Leigh;462654 Wrote: > Well said - since when did the BOM have anything to do with street > price? (other than street price is never lower... apart from the Bugatti > Veyron...) Well, every time I got a call from marketing telling me they wanted to lower the price on a unit and asked if/where I could pull money out of the build cost because they had to maintain the profit margin. -- Jonnio ------------------------------------------------------------------------ Jonnio's Profile: http://forums.slimdevices.com/member.php?userid=18575 View this thread: http://forums.slimdevices.com/showthread.php?t=68046 _______________________________________________ Touch mailing list [email protected] http://lists.slimdevices.com/mailman/listinfo/touch
