4 ms·

I'm not sure I buy this. If someone can hack this together for <$100 at home, there should be plenty of supply to meet the demand. $40 HDMI cables are an optio

by jtagen 3y ago

I'm not sure I buy this. If someone can hack this together for <$100 at home, there should be plenty of supply to meet the demand. $40 HDMI cables are an option (albeit a terrible one). For EVSEs, there really isn't a reasonably-priced alternative on the market right now.

dylan604 3y ago
Most people aren't going to DIY something like this. Also, most people think that the price of a product should only be based on the price of its components, and possibly willing to accept a mark up on labor. However, the companies making a thing, whatever that thing might be, also has to make money to be able to pay the people that work for the company, the utility bills, and the rent. There's also the fact that the companies making a thing don't get the retail price you pay. They sell it at the wholesale rate to the vendors, so there's even less margin than the retail price suggest for the makers. Just some things to keep in mind
- sokoloff 3y ago
  In engineering university, I learned the “retail needs to be 5x the BoM* cost” rule of thumb. For a very high value or very high units product, maybe you could shave that to 4x or slightly less, but there are a lot of hands between the designed part and the retail consumer and none of them want to work for free. * BoM - Bill of Materials (“what stuff goes into this thing?”)
  - dylan604 3y ago
    4x was also the minimum retail price I've been taught as well. The wholesale rate has also been anywhere from 50% - 75% of the retail price depending on the negotiations with the retailer. This is ignoring soulless companies like Walmarts/Amazons/etc where you'll never make those numbers. Something people don't always consider that when they buy something from the retailer directly, they typically make more money from that sale than if you bought the same thing from Walmart. Buying something from somewhere like Etsy vs their direct site also takes a healthy chunk.
    - sokoloff 3y ago
      That’s what I find so infuriating about many first-party sites. I’ll often find something on Amazon and if it seems like it’s from a small business, I’ll check to see if I can buy it direct. (Arguably, this behavior is unethical on my part against Amazon, but whatever.) I very rarely (like <10% of the time) find the first-party site to have an offer that even matches Amazon’s. Look, I tried. I came to you and gave you a shot, but if you want to charge the same item price and also tack on $15 of shipping, I’ve received your message (“please buy it from Amazon; we don’t want to sell it to you direct…”) loud and clear. I’m usually willing to wait a few extra days, pay the same price, and have worse returns possibility in order for you to double or triple your variable transaction profit, but you’ve got to be competitive.
      - applied_heat 3y ago
        Sounds like the manufacturer just wants to ship palettes of the product to amazon and not deal directly with individual customers and are happy to have amazon make their markup for the service they provide.
      - dylan604 3y ago
        Yeah, sites willing to accept the full retail price and not discount the shipping to match a larger vendor's site, then of course they're firing their footgun with both barrels. There's a reason places will offer free shipping with minimum purchase prices that ensures there's enough profit made to cover the cost of the shipping. The hassle of inventory/shipping logistics is something people with no experience easily do not consider.
      - Libcat99 3y ago
        My understanding is that if you list on Amazon, you agree not to sell for less anywhere else, including your own site. Advertising on Amazon is nearly, but not quite, a requirement in the current marketplace. This has been part of the recent antitrust action against them.
      - shiroiuma 3y ago
        >I’ll often find something on Amazon and if it seems like it’s from a small business, I’ll check to see if I can buy it direct. (Arguably, this behavior is unethical on my part against Amazon, but whatever.) According to whom? The people who think going to the bathroom during a TV commercial break is "stealing"? Since when is comparison-shopping unethical?

by jtagen 3y ago

dylan604 3y ago

Most people aren't going to DIY something like this. Also, most people think that the price of a product should only be based on the price of its components, and possibly willing to accept a mark up on labor. However, the companies making a thing, whatever that thing might be, also has to make money to be able to pay the people that work for the company, the utility bills, and the rent. There's also the fact that the companies making a thing don't get the retail price you pay. They sell it at the wholesale rate to the vendors, so there's even less margin than the retail price suggest for the makers. Just some things to keep in mind

sokoloff 3y ago
In engineering university, I learned the “retail needs to be 5x the BoM* cost” rule of thumb. For a very high value or very high units product, maybe you could shave that to 4x or slightly less, but there are a lot of hands between the designed part and the retail consumer and none of them want to work for free. * BoM - Bill of Materials (“what stuff goes into this thing?”)
- dylan604 3y ago
  4x was also the minimum retail price I've been taught as well. The wholesale rate has also been anywhere from 50% - 75% of the retail price depending on the negotiations with the retailer. This is ignoring soulless companies like Walmarts/Amazons/etc where you'll never make those numbers. Something people don't always consider that when they buy something from the retailer directly, they typically make more money from that sale than if you bought the same thing from Walmart. Buying something from somewhere like Etsy vs their direct site also takes a healthy chunk.
  - sokoloff 3y ago
    That’s what I find so infuriating about many first-party sites. I’ll often find something on Amazon and if it seems like it’s from a small business, I’ll check to see if I can buy it direct. (Arguably, this behavior is unethical on my part against Amazon, but whatever.) I very rarely (like <10% of the time) find the first-party site to have an offer that even matches Amazon’s. Look, I tried. I came to you and gave you a shot, but if you want to charge the same item price and also tack on $15 of shipping, I’ve received your message (“please buy it from Amazon; we don’t want to sell it to you direct…”) loud and clear. I’m usually willing to wait a few extra days, pay the same price, and have worse returns possibility in order for you to double or triple your variable transaction profit, but you’ve got to be competitive.
    - applied_heat 3y ago
      Sounds like the manufacturer just wants to ship palettes of the product to amazon and not deal directly with individual customers and are happy to have amazon make their markup for the service they provide.
    - dylan604 3y ago
      Yeah, sites willing to accept the full retail price and not discount the shipping to match a larger vendor's site, then of course they're firing their footgun with both barrels. There's a reason places will offer free shipping with minimum purchase prices that ensures there's enough profit made to cover the cost of the shipping. The hassle of inventory/shipping logistics is something people with no experience easily do not consider.
    - Libcat99 3y ago
      My understanding is that if you list on Amazon, you agree not to sell for less anywhere else, including your own site. Advertising on Amazon is nearly, but not quite, a requirement in the current marketplace. This has been part of the recent antitrust action against them.
    - shiroiuma 3y ago
      >I’ll often find something on Amazon and if it seems like it’s from a small business, I’ll check to see if I can buy it direct. (Arguably, this behavior is unethical on my part against Amazon, but whatever.) According to whom? The people who think going to the bathroom during a TV commercial break is "stealing"? Since when is comparison-shopping unethical?