Another way of looking at it:
Maybe Kudos 2 is made in UK/inhouse and rest of ranges have been outsourced to elsewhere? Which could explain the higher cost of making Kudos2 and relatively cheaper other models!! Reason for this could be that maybe they want to keep the pressing process a secret. I am just guessing here...regardless the pricing is ridiculous.
Why does a higher RRP have to be the result of a higher manufacturing cost?
In many industries the following scenario occurs:
1. Company develops product line
2. The cost of manufacture for those products may be the same or different.
3. The marketing department decides on the RRP for each product - products which cost the same to manufacture are often sold at vastly different prices.
It is the marketing department's job to sell the products. Each product range needs a flagship product. The marketing dept must decide how much they think that product is worth in the marketplace (irrespective of the manufacturing cost). To position products in the market based on a standard percentage markup on top of manufacturing cost is not good business.
Let me give you an example.
A company manufactures 2 tennis racquets. Each racquet costs the company $16 to manufacture at its factory in China.
Racquet A is the flagship racquet in the range. It will have a RRP of $499.
Racquet B is an entry level frame and will sell for $99.
Although they have the same manufacturing cost there is a huge discrepancy in RRP. The racquet company expects the cheaper product to outsell the more expensive product by 30 to 1. So even though the margin is much smaller the company will still make money off the cheaper product because it is a volume seller.
Why do some consumers opt for the expensive option? Because it's the flagship!! It is the top of the range. The latest and greatest. That's what the marketing department gets paid to tell them.
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Topic: Newbery Visit on October 9th - time for more pre-orders! :-) (Read 36744 times)