BC manufacturers must be Raking it in...

[cool_hardware52]

P.S. I didn't realize you did all your injection moulding and die making in house. You must have a hell of a facility there. If I'm ever in the area, is there any chance of a tour?

Jim

Jim,

If you are in the area just give me a call. 626-799-5078

Tobin

 

[Web Monkey]

you cannot convince me that these Cost even $100 to make, in fact its probably Alot less than that... there's no "space age" tech here... design virtually unchanged in 30 years...

A clear-cut, text-book example of "Why do they charge so much?", "Because they can."

Pricing is always controlled by "Because they can". People will pay what they think something is worth. In a profit-driven business, there really isn't any reason to do otherwise.

The price of an item is generally calculated by matching several curves including cost of production vs units produced, and sales volume vs selling price, in order to maximize profits.

Terry

 

[Web Monkey]

So you're new to scuba, yet you know that a BC hasn't changed in 30 years? Exactly how would you know that? You watched some old TV shows?

Take it from somebody who actually did dive 30 years ago. BC's have changed.

Wimp! You're just getting soft because you don't have to go find rocks to hold as your tank gets lighter.

We have some 30+ year old stuff around the shop in the "museum" section. I'm not sure I'd even have the nerve to try it in the pool.

OTOH, I have a SCUBAPro Mk1 that I use on a regular basis.

Terry

 

[redacted]

Why doesn't Ford, GM, Chrysler, Honda, and Toyota all help each other out. Maybe Honda can cast blocks, while GM makes everyone's suspensions, Toyota can handle the Chassis, Ford can do all the sheet metal stamping, and Chrysler can handle wiring harnesses for them all.

If the SCUBA manufacturer's got together and somehow increased production X-fold, there would be warehouses upon warehouses full of excess BCD's. As it's already been pointed out, the production level is low because the demand is low. If the demand was high, then so would production.

Because their markets are quite large, each of their production lines run fairly steadily and constantly. As a result, they can and must be efficient as they compete without artificial price constraints and the consumer does not end up paying $25K for a $8K automobile.

 

[Jimmer]

Because their markets are quite large, each of their production lines run fairly steadily and constantly. As a result, they can and must be efficient as they compete without artificial price constraints and the consumer does not end up paying $25K for a $8K automobile.

My point is in any industry where there is fierce competition, the odds of multiple companies sharing production with each other to help each other keep costs down is low. They may share the same suppliers, but they aren't likely to work together or assist each other with production.

 

[redacted]

My point is in any industry where there is fierce competition, the odds of multiple companies sharing production with each other to help each other keep costs down is low. They may share the same suppliers, but they aren't likely to work together or assist each other with production.

I agree that multiple companies cooperating and sharing production is not the right answer. I believe there is all to much non-competetive, passive price cooperation going on already thus avoiding the "fierce competition" of other industries. Most consumers would benefit from a "survival of the fittest" thinning of the herd from the top on down to the retail outlet level that would occur if artificial price constraints were eliminated.

 

[cool_hardware52]

I agree that multiple companies cooperating and sharing production is not the right answer.

Most of the worlds BC's (and wings) are produced by a few "contract manufacturing" BC "Houses"

While "form follows function" explains to a certain extent why so much Scuba gear is nearly indistinguishable across brands, common production plays a part.

I believe there is all to much non-competetive, passive price cooperation going on already thus avoiding the "fierce competition" of other industries. Most consumers would benefit from a "survival of the fittest" thinning of the herd from the top on down to the retail outlet level that would occur if artificial price constraints were eliminated.

Don't worry, the internet is already working it's magic here too.

Tobin

 

[Carribeandiver]

I think that's one reason (of many) that a lot of us dive backplate and wings. They are generally less expensive than BC's and do a better job. As far as the pricing goes, I think this is a case of supply and demand. People will pay it, so they charge it.

great logic,, I guess that is why I paid $650 for my Halcyon BP/W.

 

[Jimmer]

great logic,, I guess that is why I paid $650 for my Halcyon BP/W.

You paid $650 because it had an H on it Like I said, people will pay it so the manufacturers will charge it. I can go to my LDS and buy a Zeagle backplate and wing system for a lot less than a Zeagle BC. You can go to Tobin's website and buy a DSS BP/W for a lot less than $650. Not all of the BP/W's out there cost the same as a Halcyon.

 

[MikeFerrara]

I agree.

The challenge I face everyday is to match demand (market size) with the appropriate level of manufacturing technology.

It's no small task to produce the goods we do in the volumes the market demands.

Our solution has been to be vertically integrated. We make almost 100% of what we sell.

All injection molds are designed and produced in house, and the parts are molded in house also.

Same for our Backplates, all in house. All required tooling and apparatus is also produced in house.

Same for our Wings. Same for the harnesses, etc.

Tobin

Interesting. I spent quit a few years in manufacturing. Years ago, the trend was to vertically integrate AND we built the tooling, automation, test equipment ect. These days, the trend is to farm it out. I sat through several cycles of going from thousands of employees doing everything...molding, punch press, plating, screw machine, assembly, circuit board manufacture, testing, building tooling and so on to having 100 ewmplyees doing nothing but light assebly, testing and packaging to just moving the whole thing to Mexico. Now days, it's even common to farm out the design. Everybody wants to be nothing more than a middleman (service organization the MBA's call it) and get paid for nothing other than touching the thing as it goes by. LOL that's why as a highly experience manufacturing, automation, controls and test engineer I am shoeing horses for a living. Hell, at least I can tell the horse what I really think of their ideas. Everytime I tried that with an MBA, I got in trouble.