[Elecraft] Selling Synths

[jim]

Ted,

You have it backwards.

The market sets the end sell price.  The company then determines if it can
provide that product/service (looking at all their costs) and still make a
profit.

And it is not as simple as I have stated.

Outrageous profits for products/services do not last a long time in the
marketplace.  Competition comes in.  Apple comes to mind.

Outrageous losses for products/services do not last a long time in the
marketplace.  The biz folds.  Countless examples.

There are careers dedicated to "setting" prices in the market place.  Their
livelihood depends on getting it right.

And then you have the Strategic element in the overall business that enters
the equation, and..............................

A career!

Jim
W6AIM






-----Original Message-----
From: Elecraft [mailto:elecraft-bounces at mailman.qth.net] On Behalf Of Dauer,
Edward
Sent: Wednesday, February 25, 2015 7:20 AM
To: elecraft at mailman.qth.net
Subject: [Elecraft] Selling Synths

Not necessarily.  The old radio had the old synth, which cost something.
The new radios have the new synth, which also cost something.  If the two
somethings are the same, the total costs of the old and new would be the
same.  But selling the new synth all by itself would still require charging
something.  That something would include amortization of development costs.
So the new radios with the new synth could cost more, less, or the same,
depending on the relative costs of the old and new components.

Ted. KN1CBR

>>>
>
>------------------------------
>
>Message: 14
>Date: Wed, 25 Feb 2015 12:47:13 +1000
>From: Gary Gregory <vk1zzgary at gmail.com>
>To: Rick Bates <happymoosephoto at gmail.com>
>Cc: Elecraft List <elecraft at mailman.qth.net>, Stan Gibbs KR7C
>	<stan at kr7c.net>
>Subject: Re: [Elecraft] Old KSYN3 cards
>Message-ID:
>	<CA+MFBaFx77qZ-0xxKs5Z=bSH59-txQXbBJjqP_31ceywpKLv8g at mail.gmail.com>
>Content-Type: text/plain; charset=UTF-8
>
>Hmmmm....if a new board is $200 as a standalone upgrade item, one might 
>assume it would increase the cost of a new k3 by at least a smaller 
>margin to help defray design costs.
>If not then one could ponder if these other factors are simply applied 
>to boards sold separately.
>Just curious.
>
>I wont be upgrading just yet....first job is to get my K3 to work as 
>designed. Being an older serial number it has "issues" and a return 
>trip to the factory is over $850.00 AUD sadly, so for now it is 
>accumulating dust and age.
>
>Gary
>Vk1ZZ
>K3, KX3, KPA500-FT, KAT500-FT,P3.
>On 25/02/2015 12:37 PM, "Rick Bates" <happymoosephoto at gmail.com> wrote:
>
>>

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