On Sun, 9 Jan 2005 23:06:41 -0500, "Mike Marlow"
wrote:


"Edwin Pawlowski" wrote in message
.com...


I'm basing my opinion on what I see and what I have experienced. Take a
look at the parts in question. Now look at the operations to make them.
Shear a blank, punch press, brake, polish, check tolerances, package,
label,
warehouse, ship, bill. Now the seller orders them, receives, warehouses,
prints a catalog, advertises, receives orders, warehouses, picks order,
packs, ships, bills. We've not even considered insurance, operating costs,
utilities, employee benefits, taxes, and finally some profit.

I'm basing my opinion (and we both only have opinions) on my experience in
doing pricing of manufactured items in both the retail and industrial
markets. If you have experience with this, can tell me the steps of
manufacturing and associated cost, travel through the supply chain, I'll
willing to listen and perhaps change my opinion.

Likewise I base my comments on certain experiences. Mine might not totally
parallel yours but I do have a great deal of experience in goods in the
supply chain and the incremental markups. I have never seen the types of
markups that have been spoken about here as a normal part of the supply
chain.

I have some experience with the gems industry. there markups of 100%
to 500% are not uncommon, at *each* level of distribution. OTOH,
inventory is very expensive and often moves slowly.




What I have seen and in this point we might be closer to agreeing
more completely, is that specialty shops will tend to price higher simply
because of what the market will bear rather than because of costs incurred
throughout the supply chain.