Looper's Delight Archive Top (Search)
Date Index
Thread Index
Author Index
Looper's Delight Home
Mailing List Info

[Date Prev][Date Next]   [Thread Prev][Thread Next]   [Date Index][Thread Index][Author Index]

Re: Repeater price



As an engineer who has worked at Lucent Technologies in Microelectronics 
and now
in Wireless Network Systems, I understand quite well Damon's plight of ever
decreasing margins.  However, the market drives everything manufacturers 
do.
Sometimes they are driven to lower manufacturing costs, driven to drive
suppliers to lower their costs, driven to lay off employees, driven to
streamline processes, driven to live more modestly, or sometimes just 
driven out
of business.  And this situation is much more difficult for the small fry
company.

All I can say, Damon, is best of luck to you.  I hope market forces treat 
you
kindly.  Folks, if you want a $488 Repeater, please be aware that if Damon 
wants
dealers to stock them, he may have to lower his profit in order to give the
dealers the margin they need/demand in order to survive.  This will either 
drive
Damon to reduce costs or go out of business.  To reduce costs, Damon can 
push
back on his suppliers (who may not budge for a small company), cheapen the
product (ruining his reputation), redesign the product (so it costs less to
produce), live much more frugally (who wants to do THAT?), or find/invent 
less
expensive manufacturing processes (NOT an easy task, but doable... 
sometimes).
Customers drive the market - economics are currently good (at least in the
USA) - you decide what you want to do.

Knowledge is power.

Best regards to all,

Bill         billfox@fast.net
http://wdiyfm.org/schedule/s_emusic.html
============================================================================
Host of EMUSIC, an electronic, ambient, and space music show.  Thursdays at
11 pm on WDIY 88.1 FM, Allentown and Bethlehem and 93.9 FM in Easton and
Phillipsburg.  Email me if you wish to submit music for airplay 
consideration.
Personal site: http://www.users.fast.net/~billfox

-----Original Message-----
From: Damon Langlois ( Electrix ) <Damon@Electrixpro.com>
To: Loopers-Delight@loopers-delight.com 
<Loopers-Delight@loopers-delight.com>
Date: Friday, November 03, 2000 8:06 PM
Subject: RE: Repeater price


>Hey loopers,
>I have a general appeal to everyone interested in buying Repeater. Be
>suspicious of anyone offering it for much less than $599. Our suggested
>Retail is $749 US so a discount to $599 would be an amazing deal. Repeater
>is priced very fairly and we did not leave much room to discount it. All 
>of
>our products have the best price possible without huge margins. I can't
>imagine why someone would basically give Repeater away but if there is an
>asking price of $488 we will have some major problems.
>
>Setting a price precedence of $488 forces our other dealers to try and 
>match
>this price. Unfortunately this price doesn't give the dealer enough margin
>to stay in business (in fact $488 is almost no margin at all). This
>inevitably results in other dealers not even stocking the product. If no 
>one
>else stocks the product we go out of business.
>
>We are committed to offering cool, unique products that have a high degree
>of innovation, quality and affordable prices. At $488 Repeater is devalued
>far bellow a reasonable price putting our ability to do the above at great
>risk. It also just depreciates the value of the product in general.
>
>Bottom Line is if Repeater sells for $488 It ruins other retailers chances
>for sales therefore ruining our chances at sales therefore no more 
>Electrix.
>
>Of course you are going to want to negotiate the best price possible and I
>realize it seems insane to say "actually, that price is too low. Let me 
>pay
>more".  This is just a warning that whoever sells it at that price is 
>making
>no money at all and why would they do that? Also, Please consider that
>promoting this price (if it exists) can damage our ability to survive and
>continue to even produce Repeaters.
>
>O.K. I'm off my soap box now.
>
>Respect,
>
>Damon Langlois
>Creative Director
>Electrix
>Tel (250) 544-4091 Fax (250) 544-4100
>http://www.electrixpro.com