arruntus
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And another blow to Yuneec
- Thread starter claudius62
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PatR
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Me, smarter? No way, but I know that price is most often not reflective of cost, or value. Typically price is established by determining in advance the maximum amounts average consumers might be convinced to pay.
A product hits the market with a price. If consumers are slow to buy it the price falls. When the price is reduced and the product remains on the market you have the evidence proving excess margin was present at the previous price. If consumers buy it too quickly the price is increased under a subterfuge of excessive market demand.
Prices are also established through consumer “conditioning”, also known as advertising. With a little effort by a marketing agency consumers become convinced an item is worth what they will be charged for it in advance of the item’s availability.
“Stepping” prices of successive models is also used to drive higher pricing. If each successive model is priced higher than the last, consumers become conditioned to believe successive products are worth more, when they actually cost less to produce than a previous model. The previous model development expense provided most of the development for the successive model. Very little development cost was involved with the new model and the new model likely shares many of the same parts as the previous model, yet the new model sells at a higher price. We see this with both Yuneec and DJI.
A base manufacturing standard sets selling price a minimum of 5X or more of production costs, with development costs added into manufacturing cost and amortized over the term of the production cycle. Overhead is included as part of production cost. Additional fees are added to cover each level of distribution cost with distributor profit margin. That’s just a base standard, if you can charge more and people will pay it, so much the better for you.
When manufacturers hold 50% off sales they are still making profit., just less profit than at normal pricing.
A product hits the market with a price. If consumers are slow to buy it the price falls. When the price is reduced and the product remains on the market you have the evidence proving excess margin was present at the previous price. If consumers buy it too quickly the price is increased under a subterfuge of excessive market demand.
Prices are also established through consumer “conditioning”, also known as advertising. With a little effort by a marketing agency consumers become convinced an item is worth what they will be charged for it in advance of the item’s availability.
“Stepping” prices of successive models is also used to drive higher pricing. If each successive model is priced higher than the last, consumers become conditioned to believe successive products are worth more, when they actually cost less to produce than a previous model. The previous model development expense provided most of the development for the successive model. Very little development cost was involved with the new model and the new model likely shares many of the same parts as the previous model, yet the new model sells at a higher price. We see this with both Yuneec and DJI.
A base manufacturing standard sets selling price a minimum of 5X or more of production costs, with development costs added into manufacturing cost and amortized over the term of the production cycle. Overhead is included as part of production cost. Additional fees are added to cover each level of distribution cost with distributor profit margin. That’s just a base standard, if you can charge more and people will pay it, so much the better for you.
When manufacturers hold 50% off sales they are still making profit., just less profit than at normal pricing.
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A rather lengthy read, I tend to take some disagreement with the section clipped above.
Nobody takes away your ability to think for yourself. People can only give that ability away. Most give away their decision making because of two things. They are lazy and thinking is effort, or, they are herd mentality driven.
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PatR
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arruntus
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It's precisely what I said, partner, people let themselves be dragged, it's like a flock of sheep and follows the fashion. Of course they can think for themselves, but they don't and that's the problem. No one takes that ability away from them.
There are people who just do that, do market research, figure out ways to deceive people even if it's subconsciously, and I'm afraid, even if we're aware of it, they end up deceiving us all in one way or another.
Anyway, although the H520 is more oriented to the professional market, it is still a mass product, although in my opinion it has not been very successful due to its limitations in basic things. It still doesn't get into my head that they still can't solve it, or can't do it ?
PatR
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Not that they can’t. Bigger fish to fry. They aren’t capturing the profit they believe they should have from the consumer market so they are trying to enter a market they think will pay more for what they buy. Doing that has them telling themselves they will make more money selling fewer units.
I believe they are not seeing a very critical factor in that approach. The market they are hoping to target is populated by people using more critical thinking processes and they are quite demanding of product features and quality, insisting on repeated proof of performance, not accepting advertising assertions. Those buyers research company and product histories to establish seller veracity.
In such a market a product has to perform equal to or exceed advertised performance from day 1 or they won’t be purchased, especially if there was a history of failures.
I believe they are not seeing a very critical factor in that approach. The market they are hoping to target is populated by people using more critical thinking processes and they are quite demanding of product features and quality, insisting on repeated proof of performance, not accepting advertising assertions. Those buyers research company and product histories to establish seller veracity.
In such a market a product has to perform equal to or exceed advertised performance from day 1 or they won’t be purchased, especially if there was a history of failures.
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PatR
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Wise move. Start them young.
venturebeat.com
DJI’s RoboMaster S1 is a four-wheeled robot that teaches kids how to code
Drone maker DJI's RoboMaster S1 is a four-wheeled robot that teaches kids how to code. It's the company's first STEM toy.
venturebeat.com
No, there Yunnec does not play in the same playground as DJI. Nothing to do with the kids and girls who will play with a small tank that pulls marbles. Dji had accustomed us to better than that.
The kid, when he has toured the toy and programming, will quickly leave it in the closet.
After the flat Gopro, he will tread the plates of Lego. He had already fallen in my esteem, but then there ......
The kid, when he has toured the toy and programming, will quickly leave it in the closet.
After the flat Gopro, he will tread the plates of Lego. He had already fallen in my esteem, but then there ......
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