Coil prices

[Icewing]

I just wish someone could explain to me why it costs as much to buy a coil, which is basically two strips of wire wrapped around a plastic hoop, as it costs to buy a new 4K Smart TV.

 

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[Digger RJ]

Guess it's kind of like razors. You have to have them and the costs hurt.

 

[RustyGold]

They are expensive. My guess is they sell way more TV's.

 

[Loco-Digger]

Why can you buy a coffee for a buck at most places, but others, it' cost 5 bucks? Supply and demand plus marketing. They need to cover their overhead, the cost of the engineers to design the product and the molds, the plastic and to cover their molders prices. They have warehouse associates, packaging, real property, taxes. They have marketing expenses, R&D expenses, and so on.

 

[3cylbill]

One good find will pay for a new coil ....just sayin

 

[sprailroad]

I just wish someone could explain to me why it costs as much to buy a coil, which is basically two strips of wire wrapped around a plastic hoop, as it costs to buy a new 4K Smart TV.

I feel the same way about tires.

 

[Icewing]

If it were a situation of supply and demand, explain this....

 

[RW]

If you went into the coil making business would you be satisfied selling them for $20 each and doubling your money or would you be greedy and sell them for half what competitors charge at $200 each?

If it were a situation of supply and demand, explain this....

View attachment 1519651

 

[Tom_in_CA]

Why can you buy a coffee for a buck at most places, but others, it' cost 5 bucks? Supply and demand plus marketing. They need to cover their overhead, the cost of the engineers to design the product and the molds, the plastic and to cover their molders prices. They have warehouse associates, packaging, real property, taxes. They have marketing expenses, R&D expenses, and so on.

Loco-digger, your inputs are usually always spot-on. Yes, as a business owner, I immediately spotted this logic too. A business owner (coil manufacturer or whatever) does NOT just have the cost of the "2 wires and strips of plastic", blah blah. They have overhead that goes far and away over that. Insurance, housing for the facilities that make them, insurance, etc......

And let's just suppose for one moment that that business owner DID make a profit far exceeding his input. Ok, .... so what ? Since when is that wrong ? That's what he's in business for after all. His business could have "gone south" and failed to turn a profit (business ventures fail all the time). So he SHOULD be adequately rewarded for his $$ investment risk .

 

[Loco-Digger]

If it were a situation of supply and demand, explain this....

View attachment 1519651

Here is how I explain that.

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[Terry Soloman]

If you have ever had the opportunity to visit a factory where coils are being manufactured, you know how much work goes into making each coil. The copper wire is wrapped by a computer controlled machine that knows exactly how many feet and inches of wire to use; then the coiled wire needs to be seated in the coil base and sealed by hand; the coil is then baked at a preset temp for a preset time to set the seal; then each coil is tested by hand; the cable and cable fittings are attached; the coil is hand tested again; then packaged for shipment.

The coil takes more hands to make than the electronics board, which is done completely by machine. It is mounted in the control box by hand, and connections to the controls are completed by hand. I would imagine it costs just as much (maybe more) to make a coil, as it does the electronics.

 

[Icewing]

I never intended to suggest that manufacturers shouldn't make a reasonable profit. However if I made you stop and think, I consider my mission a success.

“During the gold rush its a good time to be in the pick and shovel business.” Mark Twain

 

[cudamark]

If it were a situation of supply and demand, explain this....

View attachment 1519651

Not enough supply.....

 

[cudamark]

I just wish someone could explain to me why it costs as much to buy a coil, which is basically two strips of wire wrapped around a plastic hoop, as it costs to buy a new 4K Smart TV.

Two main reasons come to mind. 1st, the substantial difference in number sold. You can spread out your cost quite a bit if you sell a million units instead of a thousand. 2nd, competition. If you're one of only 2-3 manufacturers, you can charge more than if you had to compete with a dozen or two, especially if your competition has half your costs. (think China)

 

[Iron Buzz]

Why can you buy a coffee for a buck at most places, but others, it' cost 5 bucks? Supply and demand plus marketing. They need to cover their overhead, the cost of the engineers to design the product and the molds, the plastic and to cover their molders prices. They have warehouse associates, packaging, real property, taxes. They have marketing expenses, R&D expenses, and so on.

Exactly. The engineering and tooling costs on something like a Smart TV get distributed among the hundreds of thousands of consumers that buy that TV. And even with that, most of those costs were amortized the first few years on the TV, when it was state-of-the-art.

Your MD coils have a very small consumer base, therefore that cost of development gets distributed over a much smaller number of people. Simple division.

 

[Icewing]

Exactly. The engineering and tooling costs on something like a Smart TV get distributed among the hundreds of thousands of consumers that buy that TV. And even with that, most of those costs were amortized the first few years on the TV, when it was state-of-the-art.

Your MD coils have a very small consumer base, therefore that cost of development gets distributed over a much smaller number of people. Simple division.

I, and I'm sure the whole 'customer base' would buy more coils if they didnt cost so much.
Why spend more on a couple of extra coil options than you spent the machine to begin with?