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I see tons of threads on people stating that archery products cost to much. That Manufacturers are making to much money. I am interested in what the average hunter thinks a manufacturer should make. Lets just use a product that sells for $50.00 retail at your local archery shop. Here are a few things that you should consider.
Cost of material
Cost of manufacturing..employees, insurance, overhead etc.....
Advertsing
Manufacturers profit after paying above
Distributor profit to get into stores
Retailers profit...employees, rent, insurance etc....

After all the above how much does a $50.00 product need to be manufactured for?
 

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Retail $50.00 whole sale $25.00 manufactures cost $18.00. thats about how the math looks
 

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I know that the retailer needs to make at least 20-30% depending on the volume they will be selling. So that would mean they are getting it into their stores for $35-40. Manufactures will need to make much more profit than the retailers because that product is all they have. Some manufacturers build other items and try to get it other markets. I would say the manufacturer needs to make double the profit of the retailer. So they would need to be able to make the product for about $15.
 

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Registered deer murderer
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A manufacturer should make EXACTLY the amount dictated by the free market. They should charge the maximum amount they can while still selling all their production. They charge what they do because that is the price people are willing to pay for their product. If you don't like the price, don't buy the product. It's not like they are forcing you. There are plenty of products I don't buy because I feel that they are too expensive. There are also plenty of products I do buy that others might think are too expensive.
 

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I am the Tin Man!
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He should make every single penny he possibly can. If not he is out of business, its a tough world out there.
 

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A company or person who makes something should charge as much as they can get other people to pay. It's simple...or is it.....consider this.....

Macy's in NYC was actually losing business by lowering prices and attracting more less well off customers. They were selling more lower margin items but less high end- high profit items. So they raised prices on the low end stuff to draw in fewer customers over all but to attract back the high end customers who apparently don't like rubbing elbows with the lower class shoppers.
 

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enough to stay in business
If they are only making enough to stay in business what's the point in putting everything they have into designing and marketing a product?


I would'nt spend all my money and time to make something other folk's wanted to buy to only break even that would get me no where.
 

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Things people forget is electricity he has to pay. All the intrest/payment he has to pay on the bows, ect he has in stock. The rent/payments for the building. Paying his workers. And more i dont even know.
 

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Retail $50.00 whole sale $25.00 manufactures cost $18.00. thats about how the math looks
Thats for a low profit. Ive seen some manufactures cost on HD cameras.

$1500 or so retail for about $200.

Most stuff varies depending on what it is. Electronics give the best return for the mfr.
 

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A company or person who makes something should charge as much as they can get other people to pay. It's simple...or is it.....consider this.....

Macy's in NYC was actually losing business by lowering prices and attracting more less well off customers. They were selling more lower margin items but less high end- high profit items. So they raised prices on the low end stuff to draw in fewer customers over all but to attract back the high end customers who apparently don't like rubbing elbows with the lower class shoppers.
This may not apply to all industries. I worked for a very large tire company for ten years. The products we made the most on were almost exclusively mid range retail price. Our high end products we made almost nothing on.
 

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A manufacturer should make EXACTLY the amount dictated by the free market. They should charge the maximum amount they can while still selling all their production. They charge what they do because that is the price people are willing to pay for their product. If you don't like the price, don't buy the product. It's not like they are forcing you. There are plenty of products I don't buy because I feel that they are too expensive. There are also plenty of products I do buy that others might think are too expensive.
Couldn't have said it better myself
 

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Whatever the market say's he can, I would rather buy 1 at twice the price and last twice as long, as half price, and not last
 

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enough to stay in business
Disagree 100%.

They should make as much money as they can on it. Whatever the demand and market allow for them to make for their actual profit could be anything. There is something wrong with a system when on each gallon of gas Exxon makes 2-3 cents profit on a gallon of gas and a state makes 40 cents profit because of the tax.

why be in business to make just enough to stay alive? make enough to grow and dominate your rivals.
 

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This is easy.
The manufacturer should make as much money as the market allows for.

ECON101


I see tons of threads on people stating that archery products cost to much. That Manufacturers are making to much money. I am interested in what the average hunter thinks a manufacturer should make. Lets just use a product that sells for $50.00 retail at your local archery shop. Here are a few things that you should consider.
Cost of material
Cost of manufacturing..employees, insurance, overhead etc.....
Advertsing
Manufacturers profit after paying above
Distributor profit to get into stores
Retailers profit...employees, rent, insurance etc....

After all the above how much does a $50.00 product need to be manufactured for?
 

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A manufacturer should make EXACTLY the amount dictated by the free market. They should charge the maximum amount they can while still selling all their production. They charge what they do because that is the price people are willing to pay for their product. If you don't like the price, don't buy the product. It's not like they are forcing you. There are plenty of products I don't buy because I feel that they are too expensive. There are also plenty of products I do buy that others might think are too expensive.
Dittos!!! Things have changed a lot since January '09, but I think it is still the good ol' U S of A!!!!
 

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Been in sales for over 20yrs and have always heard that true "manufaturing cost" better be 1/5 of the retail/selling price in order for the mfg. to pay the bills, pay the help, pay the taxes, and so on and so on. I didn't make it up, but that's what I've heard.

Dawg
 

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Resources, manufacturing, marketing, etc., etc. aside...the price of a product is whatever the market will allow! It's only worth what someone's willing to pay for it anyway! If it isn't profitable, if it isn't worth the risk of investment or the time - it won't be made. God bless America!
 
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