"Pete C" wrote in message
...
On 24 Mar 2005 16:18:26 -0800, "Magician"
wrote:

Hi All

Having been in the industrial equipment market for 30 odd years, can I
make a few points about 'cheap' power tools and just why our Chinese
friends can make them so cheap.

A huge part of the cost of a new product - Bosch with the jigsaw, Skill
with the circular saw, is development. Not just the huge cost of
developing the tool, but developing the market for it.

If you look at the progress of any product in marketing terms the
initial sales of a new product will be low - people resist new ideas
and it takes time to get new products accepted. You don't make any
money at this stage.

I'd disagree with this, a product fills a 'need', then the market is
created by its price, for instance mobile phones.

No. Large organisations, the car industry is an example, have marketing
depts create desire and demand. The car industry is not technology driven,
so needs to create desire to sell outdated products. You never see a car
being sold on the latest leading edge technology, it is always image and
lifestyle, etc.





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