discouraging reality


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discouraging reality
04.03.05 (4:53 pm)   [edit]

The old Chinese proverb is again in my mind--"May you live in interesting times".


Jolly Roger has again changed production locations, and as always I tried to use U.S. companies first and when those prices were WAY WAY WAY off, looked at Germany, and when those were too high this time, I had to decide to have a product assembled in China--the price couldn't be beat.


Of course, there was little room for thought.  The prices:


US - $7.62/unit, minimum run of 5,000 copies (~$38,000), retail price would need to be roughly $35-38.00.


EUR - $5.28/unit, run of 2000 copies (~$12,000 including shipping), retail price would wind up roughly $25-28.00


PRC - $4.11/unit, run of 2000 copies (~$10,000 including shipping), retail price will wind up around $20-21.00.


How in the world can the same work have such a difference? I understand cost of living, etc, but how can a business be expected to use local suppliers with such a discrepancy in price--because there's no way a game buyer will pay $35 for a game that really should be in the $20 price range.  And if they won't buy it, then JRG is out tens of thousands of dollars.  Much better to have a price 50% lower, sell copies AND make a profit.


In the end, the question is how much people really do want the benefits of the open market.  It's great to complain about jobs and work heading overseas, but how many people are willing to pay 200% of current prices in those situations?

 
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