Quote:
Originally Posted by Pdelcast
highflier --
No worries... I don't scare easily. If there isn't a big enough market to justify the design and tooling costs (and remember, it costs us about $20K in tooling and NRE, and up to $150K - $250K in inventory costs to release a new product) we just won't do it. I hate to say that, but it's all in the economics of it. We can BARELY support the entire boat market -- the market is just barely big enough.
Now, we could charge a large premium (say, double our normal margin) for the product to justify the small quantity if it came down to it...
Patrick
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I thought the 8S project was not that big. Oh well I appreciate your honesty. A business has to make smart decisions, Better to have good choices and be able to support what you do, rather then do what people want until you are out of business from bad economics.
Have you considered doing the design work and asking the Asian market to do a knock off. Then rebrand it so not to tarnish your good name?
Highflier