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| WTF? $ 4500 (you serious?) |
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| thatitalian:
An item is worth whatever a buyer is willing to pay, that is simply good business. I you take into account the setup cost, labour, materials, any other variable costs and then absorb your fixed costs into that cabinet using an OAR based on labour hours, you're not far of that price to be fair! Not that I am in business mode or anything because I am studying for exams.... ;) But seriously, some people keep their cabs, others sell them. I plan on selling mine after for OOONE MILLLLON DOLLLLARS!!! Lol. No seriously, I wouldn't sell it, so you can't buy it! >:D I think we should congratulate him if he gets that price! I would be happy to have $4500 in my pocket! Wouldn't you? (if you're not happy you obviously have TOO much money, so I suggest you donate some to the contributors of this forum ;D) |
| Flake:
--- Quote from: ChadTower on November 14, 2008, 11:30:29 am --- --- Quote from: (+_+) on November 11, 2008, 12:06:15 pm ---You can't expect people to pay for your upfront costs such as tools, development expenses etc. --- End quote --- No kidding. If you want to charge for cost of tools you have to include them in the sale. --- End quote --- This statement is irrelevant. He is selling for what he thought it was worth and that "worth" in his mind includes tons of man hours to build/configure. If you can appropriately cost out personal time for a task such as this then you are a smarter man than I. If he wants to put this up for sale at a price that will help recoup his overall costs then good for him if he gets it. When a manufacturing company costs out finished good inventory, part of that cost includes a portion of the Company's overhead rate. In this fashion a company has a much better idea of how much actual cost they have in making a product and they have a better idea of how much they will profit from different price structures. In this case, his tools are a part of his overhead expenses (along with time) and if he can recoup some or all of those expenses on a sale to someone who willingly pays his asking price then good for him. Do you expect him to sell this thing at cost? People need to ---smurfing--- layoff someone trying to sell a good looking, well-built cabinet for profit. Do you flame Dream Authentics or Arcades R Fun or Mamemarquees for selling their cabinets? Probably not. Do you expect those vendors to sell you a cabinet for only the cost of their parts? Should they send you their CNC machine along with the purchased cabinet? They wouldnt be in business if they did. Get real. A little common sense here would benefit all. |
| ChadTower:
Hey, I could care less what the guy asks for it. It just bugs me when people throw everything under the sun in with their price rationalization. Time is part of a project cost - tools are not. Tools are a setup cost and an asset that remains after the project is finished. Can't charge for tooling cost starting up a business either. The customer doesn't care that the screen printer cost you thousands of dollars to set up. They just want their job printed at market rates. IMO, his price was high, and it wasn't going to sell in this market, but I don't have a problem with him wanting it. |
| Flake:
--- Quote from: ChadTower on November 14, 2008, 02:24:46 pm --- Hey, I could care less what the guy asks for it. It just bugs me when people throw everything under the sun in with their price rationalization. Time is part of a project cost - tools are not. Tools are a setup cost and an asset that remains after the project is finished. Can't charge for tooling cost starting up a business either. The customer doesn't care that the screen printer cost you thousands of dollars to set up. They just want their job printed at market rates. IMO, his price was high, and it wasn't going to sell in this market, but I don't have a problem with him wanting it. --- End quote --- Actually a manufacturing company will allocate a portion of the depreciation expense for machinery into their overhead rate which gets applied to finished good inventory so fixed asset purchase costs are included into the cost the finished good. And no company in their right mind will sell the product for less than their finished good cost unless that product is considered obsolete or its long-term marketability has suffered for one reason or another and they have no choice but to sell it for what the market bears. So like I said, if the market will give him $4500 then he has a right to profit or at the very least recoup his costs. |
| ChadTower:
Depreciation is different than setup cost. He wasn't talking about wear and tear on his tools. He was talking about their retail cost. |
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