Zhangliqun
Questionologist
Re: Alnico 8 Results...are IN...
You wouldn't think so but from our point of view, we're only looking at it on a small scale, one or two buys every 3 to 6 months or so -- $4 more for a pickup? Big whoop.
But when you're selling tens of thousands of pickups and you have to compete with other makers who have already slimmed your profit margin about as far as it can go, $4 a unit can make a big difference. Even if the customers don't mind in the focus groups, the dealers might not be happy about having to shell out the extra to get the same product on their shelves for the same profit margin -- especially if there are other brands at a more competitive price that are moving off the shelves of other dealers -- and so they won't buy enough of your pickups with this pricier, from their point of view 'market-untested' magnet in it. Or maybe they won't buy any. Or maybe they'll just give you the boot entirely and go with the other brand entirely instead.
Hey, Ibanez was using Alnico 8's and then stopped. With a magnet that sounds this good, why? The only other conceivable reason is cost...
TheArchitect said:I seriously doubt $4 retail was a deciding factor.........
You wouldn't think so but from our point of view, we're only looking at it on a small scale, one or two buys every 3 to 6 months or so -- $4 more for a pickup? Big whoop.
But when you're selling tens of thousands of pickups and you have to compete with other makers who have already slimmed your profit margin about as far as it can go, $4 a unit can make a big difference. Even if the customers don't mind in the focus groups, the dealers might not be happy about having to shell out the extra to get the same product on their shelves for the same profit margin -- especially if there are other brands at a more competitive price that are moving off the shelves of other dealers -- and so they won't buy enough of your pickups with this pricier, from their point of view 'market-untested' magnet in it. Or maybe they won't buy any. Or maybe they'll just give you the boot entirely and go with the other brand entirely instead.
Hey, Ibanez was using Alnico 8's and then stopped. With a magnet that sounds this good, why? The only other conceivable reason is cost...