In article uNZWe.123865$084.68527@attbi_s22,
"LCT Paintball" wrote:


Go look at a new car lot, and then go look at some new airplanes, and
give me ONE reason why an airplane costs ten times as much as a car.



Because there are 1000 cars sold for every airplane. The cost of special
tooling isn't being absorbed by enough volume.

Volume, my ass. I'll go back to Henry Ford again. The Model T was priced
at $825 when it was introduced in 1908. He continually cut prices. By
1916, the cars sold for $345. Every time he cut prices, more people
could afford cars, and his volume went up. Every time his profit per car
went down, his total profit went up. It was his pricing policies that
made him the largest carmaker in the world. And his accountants,
investors, competitors, and everyone else thought he was crazy. Yeah,
sure.

That's the real world. You can't wait for increased volume to decrease
prices. You have to work it the other way around. People here are saying
Skyhawks are a bargain at $150,000? What percentage of Americans can buy
a toy of that magnitude? Price them as though you were going to sell a
million a year, and by god, you will.

Try selling a product to Home Depot, as I've done. They RETAIL stuff for
less than their competition can buy it for. Why? Volume. You don't tell
them what your product costs, they tell you what they'll pay. Go to
Continental and Lycoming and tell them you want to buy a million
airplane engines per year, but you need the price to be $6500. Ask them
which one of them wants the contract. They'll probably both come back
begging to undercut that target.

Jeez, I've gotten myself all worked up again. I guess I better get a
small glass of wine and go back out to the shop and squeeze a few rivets
on the RV.