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Old August 22nd, 2008, 18:04   #77
Jer-Bear
 
Join Date: Jul 2008
Location: Oakville ON
Been following but didn't want to wade in on it for a while.

I'd have to say Bob's not wrong in that sense. I ran a small archery dealership with some friends a while back and even at dealership prices the manufacturers already take a pretty hefty cut - usually 50% of what dealer price is - which makes manufacturing and raw materials cost about half of what a dealer would pay for. Then from there the dealership will mark up to the MSRP where they take another cut - this is one reason why Walmart can sell things for cheaper, not necessarily because its made in china. Just because they make money via volume and can go lower than MSRP.

So its entirely possible that SystemA's manufacturing cost is somewhere in the range of 500USD or lower. But if a Celsius has a selling price of US$500 it would mean the manufacturing+raw materials would be 200 or less - Toss in the factor of importing into Canada - 750 might be a more realistic amount.

However having said that, I'd have to stick with McGuyver's POV. Until it actually is produced in quantities and not just a prototype or worse, vapourware, we shouldn't get too excited about it. Even then, it could take some time for Celsius to iron out the kinks before its completely reliable.

Not to diss Celsius, but there are many factors in manufacturing to consider - even making knock offs aren't as easy as it sounds coz if the casting molds are reverse engineered, they are only made to the specs of the final product and not the specs of original casting molds that are on the CAD files. It will take time for Celsius to get it right. But like I said, we shouldn't get too excited before that. Too much hype can be counterproductive.
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