manufacturing cost

[mdowling]

Does anyone know about how much it costs to manufacture some of these metal detectors?Thanks.

 

[jim tn]

No, but good product and development doesn't come cheap. And, the co., distributers and dealers all get a piece of the total price. HH jim tn

 

[oldcoon]

[size=small]You are paying for the technology and research and development.
Parts considerably less.
Somebody once told me, I don't know how reliable this is, that one of the high end machines
contained less than $25 worth of parts.
You can believe that or not.
That's what I was told.
I have a son in the electronics business so I do know many of the electronics,
like the micro processors, are sold for mere cents.
They are mass produced in places like China and imported into the United States.[/size]​

 

[jim tn]

You are right oldcoon, the parts are by far the least costly of what comprises the cost of detectors. Or most things, for that matter. Besides R & D, advertising, salaries, shipping, and numerous other costs go into the total cost of a detector. HH jim tn

 

[Monte]

at the time, the suggested retail price of a model was about 6X the cost of parts and such. For example, the manufacturer I worked for in '87/'88 would say that ... roughly ... a model might be priced at let's say $600 retail. Distributor pricing at the time from most manufacturers was from 40% to 50% off the suggested retail, so if they only sent them out to Distributors (who then sold them to dealers), the company would gross $300 to $360 dollars.

Of that amount they had to cover all salaries, hourly wages, facility cost and utilities, marketing costs, parts costs, etc., etc., and still leave a company making a profit. I don't know how true those old-style estimates are today but they worked out pretty close back then.

Monte

 

[jmaryt]

parts "are" cheap!..i worked in the defense industry for 35 years!..rather than go into complicated detail,
suffice it to say,mark-up in this stuff is huge!."tons" of money is saved by using "cheap" labor from china,and mexico!

(h.h!)
j.t.

 

[Idaho PRB]

I suppose we are fortunate to have manufacturers that cater to such a specialized market as "Hobby Detecting". The catch is in supply and demand. If there were enough market for the detectors, as to allow the prices to drop substantially, there wouldn't be a place you could go that wouldn't have 50 people detecting. I don't like the thought of spending $1500-2000 to get into a top of the line detector with accessorys but it's no worse than buying a good rifle, scope, sling ,case and ammo, or a new bow with sights, stabilizer, release ,arrows, broadheads, rangefinder and quiver. Good equipment always costs exactly what they can get away with charging (what the market will bear). If they can no longer charge 1500.00 for a detector and that's what they need to make a profit based on overhead and the number of units they can sell, they will no longer be available.

 

[BarberBill]

An addtional thought - If you've ever watched programs such as "How it's Made" or similar, the development and installation of the automated production machinery has to be a considerable expense amortized over time, as well. It's amazing how complex and precise how much of that machinery is.
BB

 

[jmaryt]

i agree!..we are lucky!..regardless of "mark-up"..YOU have to pay!
nobody rides for "short" money!..people still have to be paid!

(h.h!)
j.t.

 

[Sky1]

Are ou wanting to know how much they end up with after

Manufacturing
Salaries
Insurance
Employee Benefits
Shipping
Warranties
Marketing
Advertising
Sales Reps

Depends on the detector but I am pretty sure most companies in this economy Net 0 and would be happy if they could break even right about now.

 

[jbow]

Unless you are a business owner you may not understand pricing... there are a lot more things to consider other than the cost of parts and labor. The main thing that has to be considered is how much do you have to make to stay in business and make a enough profit so it is worth all the trouble of starting and running a business while paying all your employees a good wage and benefits. The cost of parts is really the smallest consideration for a small business. You cover the cost of parts, figure out how much you have to make to take care of everyone (wages and benefits) andmake a worthwhile profit... (considering projected sales) and set the price of the product. Then there is advertising etc... parts is the least of considerations and it is completely unfair to make any judgement of a business' pricing policy by considering the price of material.

Julien

 

[jim tn]

Right you are Julien. I ran and owned retail businesses for 40 + years and it amazes me how many people think that by taking a $ 50. cost pair of shoes and pricing it $100. a store is making 100 % profit. HH jim tn

 

[Dan-Pa.]

Lets put it this way if they were not making money a metal detector manufacturer would not exist. You have to dial in parts, labor, Insurance, building maintenance, shipping. advertisement etc. so would imagine they exist by quanity selling with a modest profit on each.
Have to smile when I see made in America when it should say assembled in America as many parts come from overseas,,,

 

[mdowling]

I basically just meant the parts,I was not considering all the other costs,just parts.Thanks.Mike D.