On Tue, 16 Feb 2016 14:53:27 -0800, sms <
scharf...@geemail.com>
wrote:
>On 2/14/2016 7:03 PM, Jeff Liebermann wrote:
>> On Sun, 14 Feb 2016 16:48:25 -0800 (PST), Sir Ridesalot
>> <
i_am_cyc...@yahoo.ca> wrote:
>>
>>> I'd like you to post POSITIVE proof that Cygolites are NOT made in the United States. Where's your proof that Cygolites are NOT made in the U.S.A.? Without POSITIVE proof of that, your statment is libel. Thus, where's your proof?
>>> Cheers
>>
>> The Cygolite package says "Engineered and Assembled in USA". What
>> that means is that the various components might have been made
>> offshore, but the final assembly is done in the states. It's a common
>> problem. This may help:
>> <
http://www.forbes.com/sites/timworstall/2013/07/25/googles-moto-x-theres-a-difference-between-made-in-america-and-assembled-in-america/>
>
><snip>
>
>It's very difficult for anything involving Li-Ion batteries, high-power
>LEDs and various other electronic components to be "Made in the U.S.A."
>You can screw around with the value you assign to various components of
>the product in order to jack up the "domestic content" percentage, but
>that's about it, so "Designed and Assembled in the U.S.A. is about the
>best that you're going to get. Apple is doing that with the Mac Pro now.
Yep. That's especially difficult when there are no domestic component
manufacturers for some of the key parts. LiIon is a good example:
<
http://www.atp.nist.gov/eao/wp05-01/chapt2.htm>
While the R&D and initial production runs are often done in the USA,
volume production soon moves offshore. However, I could probably
claim a high domestic content if the most expensive and custom parts
were all made in the USA. For example, in a bicycle light, the case,
mechanical parts, mounting hardware, trim, cosmetics, optics, and
possibly the PCB can all be domestically sourced, while the much
cheaper commodity parts can be sourced from offshore suppliers.
>The screwed up part of selling bicycle accessories is that the shops
>demand Keystone margins (100% mark-up) and you can't sell direct to
>consumers at less than your MSRP.
"Fair Trade" is still alive and well.
>Once you decide to sell through shops,
>your retail has to be high enough so you don't lose money on every unit
>you sell wholesale.
Welcome to product marketing. In this case, the product needs to find
a compatible buyer. The average impulse bicycle light buyer is NOT
going to buy a $400 light at an LBS which could exceed the cost of the
bicycle. The typical Amazon shopper is NOT going to buy a $400 light
unless he has previously seen, used, and evaluated the product. Each
price tier has it's corresponding typical customer.
It's also difficult to sell a single product for an odd reason. Most
product lines need a loss leader, that nobody buys, but which helps
sell the product. In automobiles, it's the overpriced bright red
convertible sports car on the showroom floor. Nobody ever buys one,
but it attracts the customers, who think of their youthful days of
wanting such a car, and end up buying something much cheaper and more
practical. Same in bicycle lighting. For example:
<
http://www.trailled.com/lighting/>
Price range is from $350 to $1,185 for essentially the same product.
If one of the lower priced lights were advertised by itself, it would
never sell because few people can justify a $350 head light. However,
when compared to the sky high prices of the other lights, $350 looks
like a bargain. The $1,185 light is their red convertible and my
guess(tm) is they have yet to sell a single one.
>While Barry can be a little too intense, the light he manufactures and
>sells is quite good, and he doesn't gouge on spare batteries.
How can you tell it's good? Have you seen one in action? Have you
looked at his web page and found any test results, specifications,
details, reviews, or comparisons with other lights? I haven't and
suspect that he's not selling the light on technical merit. He's
selling a rather innovative lens system, his connection with NASA, and
sheer force of personality. That works very well for selling at
county fairs, kiosks, and shows. My guess(tm) is that if Barry
produced comparative specs and test data, the light would end up in
the middle of the pack with all the other innovative lighting products
with nothing to distinguish it from the others.
>The light
>would sell pretty well at around $125, but that would mean going 100%
>direct and forgetting about selling through shops.
Agreed, if all he wants to do is sell direct. I don't know the market
well enough to determine if direct sales or retail is the optimum
approach. Each has their advantages. My best suggestion would be for
him to look at the prices of the nearest competitors selling similar
lights, and see how well they're doing in direct sales, mail odor, or
retail, and then try to steal some of their business. Unless the
light does something new and innovative, it's not going to create a
new market.