Darren G. writes: << I'm judging the price the manufacturer charges. With gem jars, you have something that costs a few cents to make and sells for around 20 cents. With membrane boxes, you have something that costs a few cents to make and sells for over a dollar. That's my point-- price gouging by a monopoly single source. >>
Hola Darren, Of course I agree with your logic, but come to a different conclusion. Let's say a manufacturer makes 100,000 gem jars at direct material and energy costs of $0.03 each, has factory overhead of $3,000 and uses no QC as a 15% off spec product is acceptable at that price. Plus shipping is $400 to get to points of sale. That's a cost of $0.064 each (46% gross margin), and it is sold to the distributor at $0.12, who in turn deals with folks like us at only $0.20 each (getting a 60% gross margin). Now Eurobrane enterprises says, what crap. It works, but there must be a premiummarketout there we will give them antigravity, nearly sealed protection from the atmosphere. But make only 10,000 'brane jars at a direct material and energy cost of $0.05 each plus a factory overhead of $3,000 and a QC and higher off spec scrap rate of 50% to reflect the laminating difficulties and avoidance of bubbles, and better packing protection requirements, together being at least $2,000. Plus $400 in shipping to points of sale (smaller quantity offset by better packaging and care and lower volume). That's $0.49 each. A gross margin of 46% gives $0.90 wholesale price and a 60% retail gross margin gives $2.25 a piece. Either we're getting a good deal or Henry Ford and Joseph Wharton need to put a 'brane jar in everyone's pot of chicken. Saludos, Doug We could, of corse, drop the QC requirements to lower cost. But then, gem jars really would be a comparable competitor. So brane sales would drop even further and the fixed costs would jump up even more... So why don't you go to China and convince them to make this volume since every mineral dealer selling fragments for $1.00 a piece now can pay $0.37 a piece and have brane jars, even though it will now cost them as much as the "gem" in it now. Maybe they will all agree and say, yes, we'll all switch and not use the cheap gem jars any more for the public good. Now brane jars and gem jars will cost the same and we will love you but the mineral contingent will set your feet in cement boots and give you a free dip in the watering hole...:) :) :) Saludos, Doug except $3000 for QC and off spec materials, for the run and employees no one to do quality control as $ ______________________________________________ Meteorite-list mailing list Meteorite-list@meteoritecentral.com http://six.pairlist.net/mailman/listinfo/meteorite-list
