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01-22-2009, 07:02 PM
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#89
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Just call me J.J. McClure
Drives: E92 M3 & C4 Corvette
Join Date: Sep 2008
Location: Toronto
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Very well said.
Quote:
Originally Posted by BarryC
I wish my company could use the argument that we need to recover our R&D to justify a price. The market price is what it is and it's up to the manufacturer to figure out how to make money/recover R&D at the market price. Additionally, if Vorsteiner has to expend a "massive" amount of R&D (presumably justifying a high price) to develop something that is easily copied then it's a bad investment to begin with as the IP was easily replicated.
The fundamental problem Vorsteiner has is their products are easily copied and their pricing strategy presumes they are not. Maybe they would have sold twice as many lips at half the price to get to the same ROI. Now their short-sightedness in their pricing strategy has alienated a sizeable portion of their target market making it easy for someone else to come in and take share.
Just my $0.02....
BC
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