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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