US prices compared to European : WAS X10 Home control kit and Win XP

["Mark Harrison" <Mark.Harrison@xxxxxxx>]

Dan,

I guess the question of European pricing vs. UK pricing is something that
all of us techies have trouble justifying.

The natural assumption that we make is that the price of goods should be
related to the cost of production.

In fact, however, this isn't how product pricing works at all...

... wholesale product pricing is set to maximise (manufacturers) profit.

Essentially, the aim is to maximise (marginal profit of sale) x (number of
sales).

The problem is that the elements in the equation AREN'T independant:

1: marginal profit of sale = wholesale price - cost of manufacture - cost
of support per item
2: number of sales is a complex formulae based around market maturity,
market size, strengh of distribution channel, and ... sale price! Obviously
lower sale price leads to more sales, but it's not a linear relationship,
and the profit margin goes down with the lower price. In some electrical
appliances, say, a 5% decrease in sale price can mean a 50% decrease in
profit per sale... and a 5% decrease seldom doubles sales.
3: cost of manufacture = marginal cost of manufacture + contribution to
fixed costs of manufacture
4: contribution to fixed costs of manufacture = total fixed cost of
manufacture / number of sales
5: fixed cost of manufacture includes a portion about local certification,
so is a function of launch market!


Eek.... lots of simultaneous differential equations, without much agreement
over the EXACT definition of the formulae to estimate "2", plus
lots of subjective factors.

Comparing the US market to the UK, however:

- The market size is larger - there are more people with enough disposable
income to afford X-10 stuff.
- The reseller channel is much more mature in the US - let's face it, we
only have 2 specialist dealers with significant track records - they're
both good, but they're not companies that are household names

In terms of "is it economic to launch a product in a market", you
look at the costs of production, and the value of sales, and then work out
whether it's worth it - hence there are lots of products launched on the
Japanese market first, the US market second, and only come over to the
European market much later.

Regards,

Mark

-----Original Message-----
From: Dan [mailto:dtoma@xxxxxxx]
Sent: 18 October 2002 19:34
To: ukha_d@xxxxxxx
Subject: Re: [ukha_d] X10 Home control kit and Win XP


Thanks Paul,

I have just drop it somewhere in the house..:-)
I just don't understand.... I pay a lot comparing with the USA market and
maybe a good part for the software... why???
It is something I thing developed a long time ago for Windows 3.x, then
make it work( really???) with the newer version of Windows.
They not even tried to build a new version for Win2k/XP.

Then.. next question.. there is somewhere an ActiveX available to control
the interface?
..or somewhere a detailed protocol specification in order to develop my own
application?

I know AutoM8it.. is great...but I need to include X10 functionality in a
custom designed security system I own.
I will test it with AutgoM8it.

BR,
Dan

P.S. I was just curious to see how it works. This is my first electronic
acquisition which I cannot make it work from the day 1..:)

  ----- Original Message ----- 
  From: Paul Gordon 
  To: ukha_d@xxxxxxx 
  Sent: Friday, October 18, 2002 9:01 PM
  Subject: Re: [ukha_d] X10 Home control kit and Win XP


  Yes Dan,

  fixing this problem is actually quite simple...

  Uninstall the Activehome software, replace the CD in its sleeve,

  and throw it on a bonfire... (Nov 5th isn't far away...)

  then get yourself a copy of either:

  Autom8it - www.autom8it.com (which is free)
  Homeseer - www.keware.com (which isn't free but has a 30 day
trial)

  either of these products are a gazillion times better that
activehome, which 
  is no more than a steaming pile....

  HTH

  Paul G.







  >From: "Dan" <dtoma@xxxxxxx>
  >Reply-To: ukha_d@xxxxxxx
  >To: <ukha_d@xxxxxxx>
  >Subject: [ukha_d] X10 Home control kit and Win XP
  >Date: Fri, 18 Oct 2002 20:19:50 +0300
  >
  >Hi all,
  >
  >I just order and receive my first  X10 starter kit (Active
Home) and I have
  >tried to install the included software on Windows XP.
  >Then found on the Intellihome web site a new version of the
application
  >(1.42).
  >With both of them, the system hangs when I start the
application.
  >I have test it on several Windows XP computers (desktop and
notebooks) with
  >the same result.
  >This is my first step in the X10 world and I am really
disappointed that
  >after several hours I cannot make it to work.
  >I have no other OS available to test it.
  >
  >Can someone with the same kit help me to solve this issue?
  >
  >Thank you,
  >Dan
  >


 
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