Quoted from Dmod:This has come up before but may be worth addressing again...
ColorDMD's are expensive because they are expensive to produce, sell to a limited addressable market, and require constant reinvestment. Because we understand they're expensive, we pack as much value into the product as we can, including a record of customer service and delivering free software and feature upgrades after-the-sale.
You may not realize but ColorDMD has held prices constant since product introduction in 2012, despite heavy demand and supply chain limitations. In the last five years, new and used game prices have risen around 50% but we haven't changed our price. In fact, our LED products were offered in 2016 at an even LOWER price point.
On costs... At current volumes, we have very little leverage with suppliers. To work directly with LCD manufacturers, our volumes would need to grow by about two orders of magnitude. Most small companies purchase screens in secondary markets where costs are higher. Leverage is hard to come by as resellers purchase at auction and sell at thin margins. Availability is also limited and we often have trouble sourcing enough screens to meet demand.
In addition, we manufacture custom boards, custom brackets, custom wire harnesses, and custom shipping solutions that all sell to an extremely limited market. This all adds to cost of goods sold. Then there are additional costs to develop new products and titles, run the business, support customers, and cover taxes, shipping, and losses, etc.
I'd love to have 1/1000th the purchasing power and manufacturing capability of a $239 billion company like Samsung. It's just not realistic.
So true...
Thanks Randy for explaining the difficulties to design, manufacture, stock, communicate, support this kind of product for a niche market.