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Selling Synths

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Edward A. Dauer

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 <[hidden email]>
>To: Rick Bates <[hidden email]>
>Cc: Elecraft List <[hidden email]>, Stan Gibbs KR7C
> <[hidden email]>
>Subject: Re: [Elecraft] Old KSYN3 cards
>Message-ID:
> <CA+MFBaFx77qZ-0xxKs5Z=[hidden email]>
>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" <[hidden email]> wrote:
>
>>

Jim Bolit

Re: Selling Synths

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:[hidden email]] On Behalf Of Dauer,
Edward
Sent: Wednesday, February 25, 2015 7:20 AM
To: [hidden email]
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 <[hidden email]>
>To: Rick Bates <[hidden email]>
>Cc: Elecraft List <[hidden email]>, Stan Gibbs KR7C
> <[hidden email]>
>Subject: Re: [Elecraft] Old KSYN3 cards
>Message-ID:
> <CA+MFBaFx77qZ-0xxKs5Z=[hidden email]>
>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" <[hidden email]> wrote:
>
>>

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Edward A. Dauer

Re: Selling Synths

I think that is not correct, since I wasn¹t referring to prices. I was
referring to costs - i.e the inputs. In microeconomics the difference
between costs and prices is fundamental. Most people conflate the two in
ordinary speech; but they are different.

Edward A. Dauer
Dean Emeritus and Professor Emeritus of Law
University of Denver

On 2/25/15, 11:46 AM, "jim" <[hidden email]> wrote:

>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:[hidden email]] On Behalf Of
>Dauer,
>Edward
>Sent: Wednesday, February 25, 2015 7:20 AM
>To: [hidden email]
>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 <[hidden email]>
>>To: Rick Bates <[hidden email]>
>>Cc: Elecraft List <[hidden email]>, Stan Gibbs KR7C
>> <[hidden email]>
>>Subject: Re: [Elecraft] Old KSYN3 cards
>>Message-ID:
>> <CA+MFBaFx77qZ-0xxKs5Z=[hidden email]>
>>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" <[hidden email]> wrote:
>>
>>>
>
>______________________________________________________________
>Elecraft mailing list
>Home: http://mailman.qth.net/mailman/listinfo/elecraft
>Help: http://mailman.qth.net/mmfaq.htm
>Post: mailto:[hidden email]
>
>This list hosted by: http://www.qsl.net
>Please help support this email list: http://www.qsl.net/donate.html
>Message
>delivered to [hidden email]
>

Phil Wheeler-2

Re: Selling Synths

In reply to this post by Jim Bolit

On 2/25/15, 10:46 AM, jim wrote:
> Outrageous profits for products/services do not last a long time in the
> marketplace. Competition comes in. Apple comes to mind.
Really? Apple still seems to be doing quite well :-)

Phil W7OX

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Jerry T. Dowell

Re: Selling Synths

For sure! I wish that I had not sold most of my Apple stock over the last
couple of years!

Jerry AI6L

-----Original Message-----
From: Phil Wheeler [mailto:[hidden email]]
Sent: Wednesday, February 25, 2015 2:39 PM
To: [hidden email]
Subject: Re: [Elecraft] Selling Synths

On 2/25/15, 10:46 AM, jim wrote:
> Outrageous profits for products/services do not last a long time in the
> marketplace. Competition comes in. Apple comes to mind.
Really? Apple still seems to be doing quite well :-)

Phil W7OX

______________________________________________________________
Elecraft mailing list
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Help: http://mailman.qth.net/mmfaq.htm
Post: mailto:[hidden email]

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