Some items I sell at MUCH less than trade (To clear them) and some at good margins, unlike the tuning industry my products have to compete with other traders/supppliers and my prices reflect this, I cannot hold my prices at twice what others charge and hope they buy from me as I am one of the larger sellers with an established name who pays for marketing
I think this high overheads costs argument....etc.... is there to make people feel better about the price they paid for their remap
It's all great having 50+ "Dealers/outlets" who dont cost Revo or APR money (They only provide the maps via email or a master disc etc) but they MAKE money for them.
Company A makes software available (Remap) and ultimately it costs them £50,000 to make said software and they sell it at £300 and have 1 outlet, they also provide full back up for the product and tech support.
Company B makes software available (remap) and
They copy it from another tuner it costs them £50,000 to make said software and they sell it for £600 and have 25+ tuning companies around the country selling their product earning the software supplier £400 and the Tuner £200, the tuner (Via the supplier) also provides full tech support.
How does company B have higher costs/margins than Company A other than providing tech support for a generic (adjustable by the installing tuner) map?, apart from travel costs to go and do the initial deal (I imagine with Awesome those costs are incurred every other year
).
Also how does company B justify charging UK customers £600 for a product developed in UK for the UK market when they are able to sell it in other countries (USA for example) at $500 (£310)
(That bit is for you Robin ) Also it will have been adjusted for different fuel ratings and hotter running temps, More development and "Costs" incurred and the same tech support is provided at surely an even higher cost as tech support will come from UK yet lower price?), strange?, is that
profiteeringartificially holding higher costs or do they sell the product in other countries at a loss? (Doubt it
)
I find the whole development argument flawed, no doubt people will come up with "Other" costs but the basic principle is there?.
I made a product for the RC market a few years back (Which at the time was needed) and sold it in UK and Europe, I also sold it via other sellers (re-sellers) who bought the product from me at approx 60% of my retail price (call it trade price if you like), it did not cost me any more for the product (in fact it got cheaper as I was making larger quantities thus lowering my costs) and it was sold at the same cost as I myself charged and I got sales where I would not have done by selling to only in EU, it cost me nothing to market (other shops did it for me), my profit increased and overheads stayed the same.
I no longer make the product as I pretty much saturated the market after 18-24 months and it was roughly around that time that the Asian guys started copying it (Which was fine for me as I had made the money I wanted and I simply moved onto something else.
I am sure you are all very happy with your remaps and the price you paid, but, essentially would you have been happier to get the same product for
half the price a more competative price?.