Subject:
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Re: my biggest beef with the new product is...
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Newsgroups:
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lugnet.general
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Date:
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Thu, 6 Dec 2001 17:08:15 GMT
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Viewed:
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530 times
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In lugnet.general, Dave Schuler writes:
> If I may add to Richard's sentiment, I think the problem is that TLC often
> includes a juniorized shortcut part instead of a series of more broadly
> useful parts, and the apparent intent is to reduce production costs (NOT
> retail price) at the expense of set.
Now *this* is the part I can't seem to get.
Say you have 3 elements, and you want to reduce costs, so you create a new,
juniorized piece that combines all three. Now say each of these bricks costs
you .02 to produce. And then the new element costs you .02 to produce. But
what about the pre-production costs? We have heard that creating a new mold can
cost $50,000 to make. That is a lot of sets (1.25 million) to sell to just *
break even* with the "cost-cutting" measure of that one element.
Maybe they are saving a little money in the long long run, but I would think it
would be killing them in the short.
-John
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Message is in Reply To:
 | | Re: my biggest beef with the new product is...
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| (...) If I may add to Richard's sentiment, I think the problem is that TLC often includes a juniorized shortcut part instead of a series of more broadly useful parts, and the apparent intent is to reduce production costs (NOT retail price) at the (...) (23 years ago, 6-Dec-01, to lugnet.general)
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