Quoted from CaptainNeo:If prices were at $4300 where they should be, but would be 2 or 3 of them. (total $8600 or 12900), are manufacturers missing out on moving more product and essentially more profit by moving more volume?
Profit is the key unknown here. For argument's sake, let's say at a $4300 price point, Stern would make $1000.00 pure profit on a machine. If they sold two to someone, they make $2000.00. If they sell that same machine for $6000.00, they make $2700.00. Selling one machine makes them more profit than selling two.
If they only make $500.00 pure proft at the 4300 price point, then it is $1000.00 profit from selling two machines vs $2200.00 from selling one.
Moving more volume at a reduced price does not necessarily mean making more profit. Depending on profit per machine, they might need to sell triple the volume just to break even.
SkitB and the boutique manufacturers are a whole different ballgame. Their overhead is *way* less than Sterns. They don't have big factories to pay for along with all the utilities, don't have the same staffing costs (in some cases probably no staffing costs), don't have third party investors clamoring for profit, etc.
