Re: [Harp-L] a business systems look at harmonica fastenings

[daijoubu@xxxxxxxxx]

Remember that a good salesman will price his product based on perceived value, not on cost to manufacture. Engineering is assigned to get the cost of materials and labour down to an amount that makes it profitable. About 60% of the average street price.  Support function costs (marketing, service, accounting and R&D) must live in the remaining 40 points and hopefully leave some for the investors. 

Rob
Sent from my BlackBerry device on the Rogers Wireless Network

-----Original Message-----
From: Joseph Leone <3n037@xxxxxxxxxxx>
Sender: harp-l-bounces@xxxxxxxxxx
Date: Fri, 8 Feb 2013 15:19:58 
To: Robert Hale<robert@xxxxxxxxxxxxxx>
Cc: Harp L Harp L<harp-l@xxxxxxxxxx>
Subject: Re: [Harp-L] a business systems look at harmonica fastenings

I agree with you. BUT, I extrapolated the cost of a 12 hole chromatic over a period of 70 years, and this is what I came up with.
Larry Adler was in a film in 1942 (when I was born), and he was playing a 12 hole chromatic that cost him $4.55. Now when
you adjust for 5% inflation per year, the price would become: 1952 = $7.41. 1962 = $12.07. 1972 = $19.66. 1982 = $32.03.
1992 = $52.17. 2002 = $85.oo. 2012 = $138.44.

Ok, Now I don't believe you could have bought a 270 for $138.44 IN 2012. But adjusting for 6% was a bit high, soooo I seem to think that 5.5%
(which comes to $192.85) is more like it. Conclusion? Well, I don't know where YOU live but (with the exception of the 4 Carter years) a steady
 5.5% per year inflation never happened here. So, using my klepto for ascertaining things through ascertainment, 'I' have ascertained that the 
reason for the increases is due to the consumer having to cover the costs..as we have to do with so MANY things..of pensions. 

A business that has been around a long time is ..as we say in the sailboat world..'High Hatted'. In other words, they are carrying too much sail.
Too much sail will..with the absence of having a sturdy axe handy..de-mast your moon raker. lol (ref: witness the U.S. auto companies)

It turned out that after the war, there were SO many workers whom didn't survive (in Europe) that companies that DID have pensioners..suddenly lost
quite a few. While in the U.S. most came home and went to work. We are now paying those pensions in everything we do. It's just an economic
fact.

With much of Europe, I would assume that their compensation rates are a major factor. Whereas in lesser developed countries, the overhead isn't 
as steep. Perhaps this is the reason why Herings (Brasil) are cheaper, and Suzukis (Japan) seem to be more pricey. Of course blaming price 
increases on the price of materials is pure ridiculousness.  

smokey-joe



On Feb 8, 2013, at 2:30 PM, Robert Hale wrote:

> On Fri, Feb 8, 2013 at 3:03 AM, karen mass <kdmass7@xxxxxxxxx> wrote:
> 
>> the manufacturers haven't cut the prices on their harps
> 
> 
> I don't think we can expect to see any drop in prices by estimating
> manufacturers' cost-savings.
> 
> It's not because companies are "selfish" but because every large government
> today has debased (counterfeited) its currency.
> 
> It takes more dollars (paper units) to purchase the same things, throughout
> the supply chain.
> 
> Contact me off list, if you are willing to read more.
> 
> Robert Hale
> Spiral Advocate
> Learn Harmonica by Webcam
> Low Rates, High Success
> http://www.youtube.com/DUKEofWAIL
> http://www.dukeofwail.com
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