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#20
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"Robert Bonomi" wrote in message rvers.com... However, there are other considerations: 1) The marketplace is *tiny*, and approximating 'fixed' in size; you have to capture a significant 'share' to have any hope of recouping your start-up costs. 2) The buyers in that market are, in general, *conservative*. _VERY_ conservative. Those 'willing to take a risk' on a new manufacturer, absent a *compelling* reason to do so, are a _tiny_ minority. 3) As a result of #2, just being 'better' is _not_enough_ to get you significant sales. You have to be "enough better" that people will switch. Demonstrated reliability of construction counts for a *lot*. A 'clone', built to 'apparently' the same standards, will still take a _long_ time to acquire the same degree of reputation for reliability. 4) 'Superior manufacturing and a better financial model' alone has *not* been perceived as "*enough* better" to have any hope of capturing enough market share to make the expenditure worth doing. 5) To be 'enough better' to have a hope of capturing enough share to make the thing 'worth doing', major design changes are required. Getting a 0.02% weight reduction for the same horsepower won't get any attention. Get a 20% weight reduction, with the same horsepower, and _lots_ of people will be knocking on your door, at least for 'evaluation' purposes. Get a demonstrated 20% weight reduction, and a 30% reduction in fuel consumption, and you can probably sell your entire production line output for _years_ ahead, before the first customer delivery has 100 hours on it. If someone did go through the trouble to reverse engineer and get a TC they would still have to get STCs for any installation they wanted their product used on. |
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