With all due respect, $500 for a single channel seismograph from a major
company is sounds pretty reasonable for me, perhaps even a tactical
error.  Even though Larry can set you up with an equivalent or better
system for $300, you should understand that he is subsidizing the PSN by
taking a smaller salary than he deserves, probably dedicating part of
his home rent free, and I would guess working unpaid overtime. However,
he is filling a market niche, segmenting it to match his resources, a
viable business strategy.

Kinemetrics is paying rent, free-market salaries, employment taxes,
benefits, marketing expenses, ISO documentation, and has to make a
profit besides.  The reason a $500 seismograph is probably a mistake for
them is that it will eat up the same selling expenses (or more) than a
$10,000 item.  Somebody will have to talk to the customer, respond to an
RFQ, write the order, ship the thing, and then answer those support
inquiries.  It's not like you can crate up a gross of these units and
ship them to a distributor like a cell phone, they will have to sell
them the old-fashioned way: one at a time.  And how many are they going
to sell over the lifetime of the product? 1000? 5000? $5000 x 500 is
only $2.5 million dollars.  For the same amount of engineering they
could have designed something with a real revenue stream (although
probably they are running out of things to invent).

$500 gentlemen is a bargain. Kinemetrics would be smart to give the
design to Larry and refer all enquiries to him.  Larry, on the other
hand, might consider a push into the education market.  He could reach
it within his budget, and might multiply his sales substantially.

Greg wrote:
> 
> Edward Cranswick forwarded:
> 
> Mel Lund forwarded your inquiry regarding a simple, low-cost seismograph system
> for Turkey.  We are now offering a PC-based seismograph for $495.  The device is
>> a 1-channel system based on a geophone and intended primarily for educators and
> 
> A 1 channel geophone system for $500? I hope that's a better deal than
> what it sounds like. I didn't see it on their website yet. Maybe I
> missed it?
> 
> Larry could probably set you up for about $300, based on that
> description.
> 
> ,Greg

-- 
Doug Crice          web site http://www.georadar.com
GeoRadar Inc.             e-mail dcrice@............
19623 Via Escuela Drive           phone 408-867-3792
Saratoga, CA 95070 USA              fax 408-867-4900

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