So, how does one dealership or one store differentiate its products from the exact same products carried by other dealerships and stores? How does one select where to buy these identical products? Price ( which includes: discounts, rebates, closeouts, floor models, open box, damaged, wholesaled, coupons, and special offers) Selection of options (yes, my exampleContinue reading “NOTHING DIFFERENTIATES A NEW, 2021 FORD F-150 RAPID RED COLORED SUPERCAB (WITH SPECIFIC OPTIONS) FROM ALL OTHER NEW, 2021 FORD F-150 RAPID RED COLORED SUPERCAB WITH THE EXACT SAME OPTIONS. THIS INDISTINGUISHABILITY, THIS “SAMENESS” IS SHARED BY PRACTICALLY ALL MASS PRODUCED NEW PRODUCTS.”
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A GENERAL PRINCIPLE IN PRICING THE SALE OF SMALL, MANUFACTURED ITEMS IS THAT THE MANUFACTURING COSTS SHOULD BE 1/10, OR LESS, OF THE SELLING PRICE. FOR EXAMPLE, IF IT COSTS $1 TO MAKE AN ITEM, THEN THE ITEM SHOULD BE PRICED TO SELL FOR AT LEAST $10. IF MANUFACTURING COSTS ARE $10, THEN THE ITEM SHOULD SELL FOR AT LEAST $100.
Manufacturing costs have to be 1/10th, or less, of the selling price because there are additional costs associated with: advertising, marketing, research, development, prototyping, inventory, packaging, transportation, insurance, breakage, returns, etc. Also there has to be a profit margin. This is one of the driving reasons why manufacturing is offshored, in order to minimize laborContinue reading “A GENERAL PRINCIPLE IN PRICING THE SALE OF SMALL, MANUFACTURED ITEMS IS THAT THE MANUFACTURING COSTS SHOULD BE 1/10, OR LESS, OF THE SELLING PRICE. FOR EXAMPLE, IF IT COSTS $1 TO MAKE AN ITEM, THEN THE ITEM SHOULD BE PRICED TO SELL FOR AT LEAST $10. IF MANUFACTURING COSTS ARE $10, THEN THE ITEM SHOULD SELL FOR AT LEAST $100.”