Price of the Freerunner published?
linux.luser at myrealbox.com
Fri Mar 21 16:12:00 CET 2008
On 21 Mar 2008, at 10:01, Andy Powell wrote:
> On Thursday 20 March 2008 16:05, Stroller wrote:
>> But we must remember that an importer has to tie his own money up in
>> stock (money that could otherwise be earning interest for him) and
>> gamble with the currency exchange rates. If he buys when the dollar
>> is at 1:X and the exchange rate changes disfavourably to 1:Y, then
>> he has to swallow the difference on all his existing stock.
> Actually the best way to handle that is to buy currency at a fixed,
> price. ukforex (no affiliaton) do this sort of thing. I don;t
> understand why
> more people don't do it. If you're importing stuff on a regular
> basis it just
> makes sense..
Perhaps I'm failing to understand what ukforex does, but let's say I
buy 100 units at $100 each, and buy 1.5 dollars for a Euro. I have
spent $10,000 or €6,666 on the devices, or €66 each.
A month or two later the dollar falls to $2:€1 - everyone starts
complaining that a $100 device "should only cost €50". That doesn't
really help me, if I have 50 devices which I paid €66 for remaining
(I hope I got the maths right - it's a little early in the morning
Generally speaking currency fluctuations aren't so great over a short
period, but nevertheless margins can be quite small, too (otherwise
consumers start whinging about how they're being ripped-off!!).
Consequently apparently-small fluctuations can make a big difference
in the trader's pocket.
In another post the importer is quoted as saying "we're no bastards
making a $100 profit with each box." Now I no longer sell or import
hardware, and never did so full time, but I wouldn't bother selling
the Freerunner unless I DID make the best part of $100 on each one.
The Freerunner importer is CLEARLY no bastards!!
I used to sell wireless cards as guaranteed Linux-compatible and made
a 33% - 50% markup on each one, but even with that markup it wasn't
worthwhile. Actually, 33% - 50% is a naive assessment of markup,
because Google Adwords took a massive chunk out of that, but
nevertheless the size of the Linux market is too small to support
much business; one has to pay one's employees, the 1% or 2% you lose
because everyone wants to pay by credit-card is like being stabbed to
death with sewing needles and finally the taxman wants a cut of one's
profit!! Margins on selling hardware are just so small that I don't
know why anyone would wish to expose themselves to this list's whining!
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