Alt-BEAM Archive
Message #03535
To: JVernonM@aol.com, richfile@rconnect.com
From: "Hyndman" hyndmanm@cadvision.com
Date: Sat, 22 May 1999 15:13:30 -0600
Subject: [alt-beam] Re: Ya wanna lay off Solarbotics?
> It's expensive, but it's buisness! You realy can't do
>Dave will never sell at Walmart or expand the ranks of BEAM with his
>present
>methodology. Overpriced parts and kits actually limit access.
Over priced? First off, the capacitors he sells you can get from digikey,
but at a higher price. He buys in mass quantities so that he can sell it to
people at a cheaper price.
>It puts the "hobby" beyond the reach of many young folks who could
>benefit.
Robotics as a hobby IS expensive. But I'de like to know how a $25 kit
to build a solar robot, compares to a $500 microcontroller based robot.
>Every business man knows that the way to open and expand a market is to
>drop prices, not raise them.
I have not seen Solar botics raise prices.
>The idea is that if you drop the price you will eventually make more
profits >from the increase in orders than you lost when marking down.
>It is why Walmart is so huge now. If your pricing is high, you
>actually limit your own growth.
Your talking about multi billion dollar companies. Solarbotics is a home
based buisness, it doesn't take a genius to notice the difference.
>So, to say the kits need to cost more because they sell less is a little
>backwards.
Knowing the prices of parts, components he shells out, I can tell you their
is not a huge profit. He's not making figures like 300% profits, which
places
like walmart get, things that they sell at rediculously low prices have
rediculously low quality.
>Usually the market dictates price through competition.
uhm, What market?
Devin
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