Archived posting to the Leica Users Group, 2003/03/06

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Subject: RE: [Leica] Comments on a BD Colen statement & PMA
From: Patrick Jelliffe <pbjbike@yahoo.com>
Date: Thu, 6 Mar 2003 09:58:51 -0800 (PST)

As a small production artisan, I will tell you that it
is much more cost effective to build 50 or 100 or 1000
of any given thing with the same dimensions than it is
to build them one at a time. Supplies can be bought in
larger quantities which is always cheaper, and any
subcontracting also has vast discounts for larger
orders. Also, assembly can be automated on a small
device like a manual winder. Using this logic,
Leicavits should cost less than what Tom charges,
because of, (one would assume at least, projected),
higher production numbers.  Also, Tom has certainly
spent time and money in R&D perfecting his
Rapidwinder,  he maintains a website, I'm sure has
insurance, healthcare for himself and his employees. 
The fact that the Leicavit costs 1.5X the cost of the
Winder-M is troubling.  

> > B.D., you seem to know so little about business.
> >
> > Leica has to pay for:
> >
> > Salaries for thousands of employees
> > Health care for thousands of employees
> > Factories to pay for and maintain
> > R&D to pay for
> > Advertising/marketing to pay for
> > Has to produce hundreds (if not thousands) of
> units of product everyday
> >
> > Tom Abranshom has to pay for:
> >
> > 1, maybe 2 salaries
> > Health care for 1, maybe 2
> > A small rental unit in a industrial park
> > No R&D to pay for
> > No advertising/marketing to pay for
> > Daily out put is maybe 1 unit per day
> >
> > Is there something I am missing here?
> 
> Steve,
> 
> Yes, it would appear you are missing something. 
> That your comparison is a
> "so what".  Why should Leica's expenses have a thing
> to do with anything?
> That's like someone wanting a raise because they
> have higher expenses than
> someone else.  People should get raises/charge more
> because they earned it,
> not because of circumstances that they NEED more
> money for.
> 
> Austin
> 
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