R/C Tech Forums - View Single Post - AMB Personal Transponders...Too Expensive?
Old 12-28-2005, 06:03 PM
  #65  
gotpez
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Join Date: Feb 2003
Location: Ohio
Posts: 223
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Tracks spend several thousand dollars purchasing a lap counting system. Even if it was possible for the software to utilize two different sources for the laps, the tracks aren't going to buy more than one system unless they need to.

If someone could make a transponder compatible with the AMB system, then there might be competition, but the volume of sales is pretty low, so it is unlikely. There is also a question whether this would be legal, I don't know if there are any patents or such that might prohibit it.

AMB is not doing anything wrong. They have found a price point that allows them to sell their product at maximum profit. That is what businesses do. This is not a defense, this is just a definition of what business is all about. They are not in business to make customers happy, they are in business to make money. To a point, making customers happy will help them make money, but that isn't their purpose, just one method to help them make money.

Just think of it this way.... If you were able to double your salary without doubling your work, would you do it? If you do accept that double salary, are you price gouging? Your boss doesn't necessarily WANT to pay you double what you are getting now, but does it because he needs what you have, your knowledge and skills.

This is an item that most racers will only purchase one of. These things don't wear out, go obsolete, or get improvements. Most racers will go through several cars, radios, chargers and speed controls during the life of their transponder. So let's do the math, 3 touring cars at $300 each, 2 radios at $250, 2 chargers at $150 and 4 speed controls at $125... So, $100 for the transponder vs. $2,200 for the other equipment. It's a pretty small portion of what we spend over the life of our hobby.

Given that, by it's nature, this is a low volume item, AMB's margin will be pretty high. AMB has estimated how many they will sell and the amount of profit they need to make. Just like many companies, they sold the item at a discount (possibly a loss, who knows?) when it was new to get people interested. Now that it is successful, they can charge more. That's it, simple Supply and Demand.....
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