Baz Juniper <[email protected]> wrote:

>On 25 Feb 2010, at 16:50, Adrian Stott wrote:
>
>> "roger_millin" <[email protected]>
>> wrote:
>
>>> Now that looks identical to the tiles that I was looking for as  
>>> far as I can tell from a picture alone. If it is then it is superb  
>>> value if you want black.
>
>> But do you really think so?  How can a simple plastic extrusion lie
>> this rate a price of £4?
>
>Well, there's a bit of precision engineering, relatively small  
>volumes of product are involved and oil, presumably a principal  
>component of the plastic, is drifting back up towards USD80/barrel.   

Sure.  But look at all the other plastic doodads you can buy for a
quid or less.

>However, it strikes me that this is a prime example of pricing at the  
>level the market can bear.  Deck tiles are largely going to be bought  
>by owners of decks, and these have a tendency to be attached to  
>expensive bits of real estate or leisure vessels.  I imagine that  
>purchasers are therefore going to be less inclined to be put off by  
>higher prices.  But then I'm no economist.

I agree.

For me, the offered price is above the level I find acceptable.  So I
won't be buying.  Of course the pricing wouldn't be cost-plus.  But
the margin the current pricing suggests does suggest an opportunity
for more competition.

It's interesting that the much-lower-priced Homebase product was
marketed as useful in gardens.  

Adrian

Adrian Stott
07956-299966

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