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.
You have an interesting theory. Why haven't you tried it?
Do you have any idea what it costs to tool up and build something like an
airplane at an affordable price?
I build plastic injection molds for a living. Although prices vary
considerably with the complexity of the part, figure $40,000 as an average
price for an injection mold. Multiply that times the number of parts in an
airplane. Don't forget that the right side is different than the left side
of the plane. Now, figure around $250,000 for each piece of metal working
equipment to build the metal parts. Now, you've just about gotten started
making the individual parts of the plane. I guess you can figure out what it
will cost to build the assembly line now.
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