MODS PLEASE LOCK!

[Amused]

Originally posted by: Anubis
if it only costs 30$ to make them the shoudl sell them for like 60$ 100% profit. everyoen woudl have one. hell i would even buy one then. they would compleatly own the market even more then they do now

It simply amazes me how little people on these forums understand business. Even common sense stuff like "overhead."

If you think apple's only overhead cost is production, you REALLY need to think about this a little harder.

Now, IF these cost $30 (in parts alone as is claimed) to make, and you think REALLY hard, do you think a $60 sale price would be a "100% profit?"

Think REAL hard now...

 

[jmgonzalez]

You are aware that profit markup on car audio is at least 200-300%, right?

Originally posted by: Namtaru
I believe it.

Here is my find.

A sony CD player for a car here

The player retails for $649.99

If you work at BestBuy you can pick this beauty up for $187.96 on your discount
And BestBuy is still making money off that.
which means the distributor is still making money off of BestBuy

If thats not markup then i'll be a monkeys uncle

 

[bozack]

cmon guys, just because it costs *you* said amount for certain items doesn't mean these companies pay anywhere even close to that....heck those microdrives you guys pay $150 for Apple or any other major system reseller could be getting for less than $5 a piece depending on the volume they buy them in and the deal they have with the supplier....

I am actually surprised that it costs them that much to make an ipod and would have figured the manufacture cost somewhere in the sub $15 dollar range.....

I also agree with this:

they WANT to establish the ipod as the niche item

and expand that to all of their products, they like being associated with *high end* and quality which currently they are due to their media exposure and such....they price it at what the market will bear

 

[Viper GTS]

Originally posted by: z0mb13

Originally posted by: Viper GTS

Originally posted by: z0mb13

Originally posted by: DOACleric
Considering that it costs Apple ~$100-150 for the 4gb HD, I don't see where you're professor is getting $29 from.

I am sure he is not lying... he knows steve jobs personally..

Cost of Goods for 3rd Generation Ipod

If you think the mini costs 1/5th as much to build as the full size you are a fool.

Viper GTS

again I am restating whatever my prof said, and he is a big apple guy...
I dont care if ubelieve it or not..

Restate it all you want, but it's fairly obvious to anyone with a 1/2 oz of common sense that:

1) He is misinformed or full of it or
2) You misunderstood him or you're full of it.

Viper GTS

 

[Namtaru]

Originally posted by: jmgonzalez
You are aware that profit markup on car audio is at least 200-300%, right?

Considering I work in the Car-Fi dept. at BestBuy I am fully aware of this

 

[Zenmervolt]

Originally posted by: z0mb13

Originally posted by: Viper GTS

Originally posted by: z0mb13

Originally posted by: DOACleric
Considering that it costs Apple ~$100-150 for the 4gb HD, I don't see where you're professor is getting $29 from.

I am sure he is not lying... he knows steve jobs personally..

Cost of Goods for 3rd Generation Ipod

If you think the mini costs 1/5th as much to build as the full size you are a fool.

Viper GTS

again I am restating whatever my prof said, and he is a big apple guy...
I dont care if ubelieve it or not..

He's also a marketing guy, and I'm sorry but marketing people are simply not taught about all the ancillary expenses that products incur. If you want to find out how much it is really costing Apple to produce these things, you'll need to talk with someone in accounting or finance.

ZV

 

[Imdmn04]

It's considerebally more than 30, 30 is probably just material costs, there is salary to pay for people who makes them and people that design them(R&D), warehouse that stores them, marketing the item, rate of return on faulty products, etc.

Your professor is smoking crack.

 

[Wuffsunie]

Hey, z0mb13, can you get some figures for the amount of markup at each stage of distribution for those things so we can see who's ripping us off the most?

I remember seeing in a marketing class I'm taking an item that cost $16 in material to make end up being sold retail for $120 or so after the manufacturer, the wholesaler, and the distributor have taken their cuts of it, so a $30 ipod going for $200 isn't that outlandish.

 

[Viper GTS]

http://www.envynews.com/newscom/phpBB2/viewtopic.php?t=2955
http://www.whatdoiknow.org/mt/mt-comments.cgi?entry_id=1423
http://www.stargeek.com/item/58966.html

Reasonable minds would conclude that the drive alone cost at least double what you're trying to tell us the entire thing costs.

Viper GTS

 

[stev0]

Originally posted by: Viper GTS

Originally posted by: z0mb13

Originally posted by: Viper GTS

Originally posted by: z0mb13

Originally posted by: DOACleric
Considering that it costs Apple ~$100-150 for the 4gb HD, I don't see where you're professor is getting $29 from.

I am sure he is not lying... he knows steve jobs personally..

Cost of Goods for 3rd Generation Ipod

If you think the mini costs 1/5th as much to build as the full size you are a fool.

Viper GTS

again I am restating whatever my prof said, and he is a big apple guy...
I dont care if ubelieve it or not..

Restate it all you want, but it's fairly obvious to anyone with a 1/2 oz of common sense that:

1) He is misinformed or full of it or
2) You misunderstood him or you're full of it.

Viper GTS

pwnt.

 

[Zenmervolt]

Originally posted by: bozack
cmon guys, just because it costs *you* said amount for certain items doesn't mean these companies pay anywhere even close to that....heck those microdrives you guys pay $150 for Apple or any other major system reseller could be getting for less than $5 a piece depending on the volume they buy them in and the deal they have with the supplier....

I am actually surprised that it costs them that much to make an ipod and would have figured the manufacture cost somewhere in the sub $15 dollar range.....

I also agree with this:

they WANT to establish the ipod as the niche item

and expand that to all of their products, they like being associated with *high end* and quality which currently they are due to their media exposure and such....they price it at what the market will bear

Yes, of course, because you don't have to PAY the people who put it together, or the people who manage the plant or for the rent on the plant or for the machinery used to put it together, or taxes, or utilities for the factory....

ZV

 

[stev0]

Originally posted by: Viper GTS
http://www.envynews.com/newscom/phpBB2/viewtopic.php?t=2955
http://www.whatdoiknow.org/mt/mt-comments.cgi?entry_id=1423
http://www.stargeek.com/item/58966.html

Viper GTS

pwnt^2.

he's on a roll today!

edit: i would respond with my .02 but viper has already layed it down.

 

[waylman]

Originally posted by: Viper GTS
$29? I call BS on that one.

Look at the prices of MicroDrives, battery packs, & all the other technology that goes into one.

No way in hell they can build it for $29.

Even if it DID only cost $29 to actually build, there's far more to profit than just the cost of building the product.

Viper GTS

apple buys everything in mass quantities which obviously means big discounts. The cost of battery packs, microdrives etc. that you are referring to are retail costs...not wholesale which is alot cheaper.

 

[z0mb13]

Originally posted by: waylman

Originally posted by: Viper GTS
$29? I call BS on that one.

Look at the prices of MicroDrives, battery packs, & all the other technology that goes into one.

No way in hell they can build it for $29.

Even if it DID only cost $29 to actually build, there's far more to profit than just the cost of building the product.

Viper GTS

apple buys everything in mass quantities which obviously means big discounts. The cost of battery packs, microdrives etc. that you are referring to are retail costs...not wholesale which is alot cheaper.

also do u actually think that apple pays retail prices for microdives?? if so u r the dumbass...

 

[AvesPKS]

This reminds me of the time when I was 8, and found out that Nintendo games cost somewhere in the vicinity of $5 to make. I couldn't understand why they sold them for $50...

 

[z0mb13]

Originally posted by: stev0

Originally posted by: Viper GTS
http://www.envynews.com/newscom/phpBB2/viewtopic.php?t=2955
http://www.whatdoiknow.org/mt/mt-comments.cgi?entry_id=1423
http://www.stargeek.com/item/58966.html

Viper GTS

pwnt^2.

he's on a roll today!

edit: i would respond with my .02 but viper has already layed it down.

uhhhh, u are nobody. my prof is the person that SETS THE PRICES for apple products...

again dont have to believe me...

 

[royaldank]

uhhhh, u are nobody. my prof is the person that SETS THE PRICES for apple products...

again dont have to believe me...

I thought you said he wanted the $199 price and then drop to $149. Doesn't sound like he's actually setting the price.

 

[z0mb13]

Originally posted by: royaldank

uhhhh, u are nobody. my prof is the person that SETS THE PRICES for apple products...

again dont have to believe me...

I thought you said he wanted the $199 price and then drop to $149. Doesn't sound like he's actually setting the price.

yes he wanted the 199 price, but steve jobs wanted 249... so guess who won

 

[RichieZ]

whats ur profs name, and what school do you go to?

I find it hard to believe that it costs $29 to produce, but if he does have strong ties to apple then it could be plausible

 

[stev0]

Originally posted by: z0mb13

Originally posted by: stev0

Originally posted by: Viper GTS
http://www.envynews.com/newscom/phpBB2/viewtopic.php?t=2955
http://www.whatdoiknow.org/mt/mt-comments.cgi?entry_id=1423
http://www.stargeek.com/item/58966.html

Viper GTS

pwnt^2.

he's on a roll today!

edit: i would respond with my .02 but viper has already layed it down.

uhhhh, u are nobody. my prof is the person that SETS THE PRICES for apple products...

again dont have to believe me...

and your somebody? get a clue, get a life.

 

[richardycc]

I believe it, I call it the 3x rule, cost $30, sell it to retailers for $90ish, retailer's MSRP is usually 2-3times their cost.

 

[z0mb13]

Originally posted by: stev0

Originally posted by: z0mb13

Originally posted by: stev0

Originally posted by: Viper GTS
http://www.envynews.com/newscom/phpBB2/viewtopic.php?t=2955
http://www.whatdoiknow.org/mt/mt-comments.cgi?entry_id=1423
http://www.stargeek.com/item/58966.html

Viper GTS

pwnt^2.

he's on a roll today!

edit: i would respond with my .02 but viper has already layed it down.

uhhhh, u are nobody. my prof is the person that SETS THE PRICES for apple products...

again dont have to believe me...

and your somebody? get a clue, get a life.

yes I am nobody, but I am just restating what my prof said...

 

[LiekOMG]

Originally posted by: RichieZ
whats ur profs name, and what school do you go to?

I find it hard to believe that it costs $29 to produce, but if he does have strong ties to apple then it could be plausible

Yes, what is his name, and what school? Inquiring minds want to know.

 

[Zenmervolt]

Originally posted by: z0mb13

Originally posted by: stev0

Originally posted by: Viper GTS
http://www.envynews.com/newscom/phpBB2/viewtopic.php?t=2955
http://www.whatdoiknow.org/mt/mt-comments.cgi?entry_id=1423
http://www.stargeek.com/item/58966.html

Viper GTS

pwnt^2.

he's on a roll today!

edit: i would respond with my .02 but viper has already layed it down.

uhhhh, u are nobody. my prof is the person that SETS THE PRICES for apple products...

again dont have to believe me...

I'm perfectly willing to believe that the PARTS only cost Apple $29. However there is no fvcking way that when all the ancillary costs are included that it is only $29. If it takes an hour to make one, that's $40 in labor costs (one hour of labor plus a normalised per-hour cost of health care and other services provided to employees that are not part of the direct labor cost) alone. So if it takes an hour to make, Apple would have to be getting paid to take the parts. And that's just labor costs, not selling and admin, rent, utilities, taxes, etc.

I'm sorry, but marketing people don't know sh!t about the true costs, the classes they take and the numbers they see just are not the complete numbers.

ZV

 

[z0mb13]

Originally posted by: DOACleric

Originally posted by: RichieZ
whats ur profs name, and what school do you go to?

I find it hard to believe that it costs $29 to produce, but if he does have strong ties to apple then it could be plausible

Yes, what is his name, and what school? Inquiring minds want to know.

for privacy issues I will not state the name and school. sorry