Eric Oliver wrote:

> Believe me, you don't charge what it costs you to make the product ( plus
> markup ), you charge what the market will bear. If you can't make your
> desired margin at that price you either a) get out of the market, b) figure
> out how to market your product to a sector that will support your margin,
> or c) figure out how to make the product at the margin you require.

Exactly

We make an analog sensor that costs us about $6.00 in parts and labor.
We originally charged about $38 for it, but we couldn't keep up with
the demand.  Now we get $50 for it.

 Another product we make costs us about $4.50 to build and $8.00
is the upper limit we can charge for it.  I would like to discontinue it,
but we make it for one of our better customers.  What they want
they generally get.

Our sensor originally competed with a $20 product that cost the
customer $150 - $200 to install.  Ours simply bolts on.  Realistic
pricing has to be based on the value received by the customer,
not on the costs to make it.  The competition is producing similar
sensors now, but I haven't seen anyone cutting prices much yet.
It will come though and I'll either adjust by lowering my prices
or bring out a redesign I've done redesign that adds more value
for the customer or both.

I love competition.  It keeps me from getting stale.

Mark Walsh