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#6
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The surviving company will usually optimize the product price to maximize
total profit. Many times, the optimal total profit is achieved with a lower product price generating significantly increased volume. And how is this determined, if there is no other show in town to compete against? Answer: By setting it at whatever the (formerly) rich pilot will pay. If there is no UPSAT to field a competing product, what possible incentive will Garmin have to lower the price? No, less competition in the avionics world is going to hurt us all, I'm afraid. -- Jay Honeck Iowa City, IA Pathfinder N56993 www.AlexisParkInn.com "Your Aviation Destination" |
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