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Originally Posted by Ken Paul  Go get that money Ethan!! |
Heh.
A lot of people don't understand the economy of manufacturing. Especially now that so much stuff is made in China and sells cheap here. Our profit margin is much lower than usual for manufacturing. We're lucky to get 50 percent after the cost of materials, labor salaries, rent, heat and air conditioning, phone, employee insurance, boxes and packing materials, advertising, and all the rest. Versus 3x or 4x that's more typical for mass-produced stuff like tape measures and soda bottles.
I just bought a small diaphragm Nady microphone to test its suitability for room measuring. I paid $40 at the local music store. Now, I'm sure it was made in China, but think about how many people made a profit along the way. In order for my local music store to make enough to be worthwhile they probably paid the distributor half, or $20. And the distributor probably paid half of that if not less. This doesn't even include the cost of shipping. If the Chinese factory got more than $5 I'd be surprised.
It's not like that for stuff made in the USA.
--Ethan