For what it’s worth, I heard an insider story- Marc Gomez brought SAT arm in at a much lower price point initially (maybe half the current price), and was told by an US distributor to package it in a better box and to increase the MSRP to $30 K.
I guess, we would never know for sure, but sounds completely plausible to me.
And it worked too.
Stories like this seem to be fairly prevalent these days in HEA. Too bad IMHO. I think that the distributor is doing a MAJOR disservice to the manufacturer and to the potential customer base. Sure, some sales will be accrued at the ridiculous price, but the BIG question is...how many will be left behind!
I have heard of this kind of marketing scheme being applied to numerous other products in the hobby. Perhaps the most famous one is when AJ Conti imported the new MSL cartridges....and did essentially the same thing. Result, the number of MSL cartridges that were sold in the US vs. the competitors in the same arena was a mere fraction of what most believe it could have been. Additional result is that something called 'negative' marketing now has to be addressed....resulting in a) more expense to the manufacturer and the secondary dealers, b) Buyer's looking at the various off-shore options to make the same purchase ( at a fraction of the price) and c) a potential damage to the name of the brand.
I have asked before why so many of these products are priced at x or y...and not multiples of x and y? The answer, which I'm sure most of us know, is that the distributor believes that these numbers are the MAXIMUM
that they can get away with to
insure maximum profit. Unfortunately, and naturally IMHO...I think too many times these very same distributors are simply shooting themselves in the foot and creating a precarious position for the manufacturer. Too bad that the heaviest loss is to the manufacturer and not the very same distributor..or representative.
BTW, I happen to know of a similar scenario going on right now with a well known and fairly dear to my heart manufacturer, who has just taken on a new marketing rep....this genius has just suggested to the manufacturer that they dump all their dealers ( YIKES...plus you should hear how the just burned dealers are taking the shellacking) and go direct sales only!! To this an increase in their across the board pricing to the stratosphere is now implemented. Part of the strategy is that the same manufacturer will go to the various shows around the world and offer massive discounts to show goers to encourage good feelings--and additional sales. ( Oh, I forgot, a complete updating of the entire line will now be accomplished every eighteen months--- although this will not become immediately obvious and won't be disclosed !!)
Such a pity, as my bet is this poor fellow will be out of business in less time than it takes for his new marketing rep to find his next job!!!!