Alt-BEAM Archive

Message #03537



To: beam beam@corp.sgi.com
From: Richard Piotter richfile@rconnect.com
Date: Sat, 22 May 1999 16:36:12 -0500
Subject: [alt-beam] Re: Ya wanna lay off Solarbotics?


You just don't get it though. There probably aren't enough BEAMers out
there for the buisness to stay afloat without the higher prices. You
can't just "break even" I made small profits upgrading TI calculators a
while back, but I simply couldn't keep it going. If BEAM grows, then
maybe Dave can bring down prices, but he can't "break even or even run
with low profits. He'd need to get that money elsewhere (other work) and
that'd cut back the time he has from BEAM,a nd it'd eventualy destroy
the little buisness. I KNOW. I tried it once, and It doesn't work like
you think it should. There simply is not enough of a market to pull
prices down. When the market grows, then prices can begin to go down,a
dn then with lower prices, then, and only then will it be possible for a
major explosion in his buisness. Understand?

JVernonM@aol.com wrote:
>
> In a message dated 5/22/99 2:29:14 PM Eastern Daylight Time,
> richfile@rconnect.com writes:
>
> > It's expensive, but it's buisness! You realy can't do
> > much about it. Dave needs to make something from this buisness. BEAM is
> > NOT BIG!!! No one at my colege had heard of BEAM when I arrived! We are
> > the minority and Dave has to get money from some where. When BEAM grows,
> > his prices may drop, but BEAM isn't big enough. It's a shame Dave
> > couldn't market BEAM at Walmart as the "Do-It-Yourself Robot"! If he
> > ever pulled that one off, he probably be able to drasticly reduce
> > prices.
> Dave will never sell at Walmart or expand the ranks of BEAM with his present
> methodology. Overpriced parts and kits actually limit access. It puts the
> "hobby" beyond the reach of many young folks who could benefit. Every
> business man knows that the way to open and expand a market is to drop
> prices, not raise them. 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. So, to say the kits need to cost more because
> they sell less is a little backwards.
> What bothers me here is that this price structure is part of a monopoly. That
> in itself makes the issue more pronounced. But, it would seem that many of
> you don't care that your only source of solar cells, motors, and other parts
> is a little pricey. I've found this attitude rarely in other businesses.
> Usually the market dictates price through competition. But, there's that
> monopoly thing. Never mind, he sits at the right hand of Tilden, correct? And
> God can do whatever he likes. Weird.
> Jim

--


Richard Piotter
richfile@rconnect.com

The Richfiles Robotics & TI web page:
http://richfiles.calc.org

For the BEAM Robotics list:
BEAM Robotics Tek FAQ
http://people.ne.mediaone.net/bushbo/beam/FAQ.html

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