unfocused said:I'll leave the physics to others, but here is what I can't get past.
Let's say I own a lens business. For this example we will call it "Neuro's Ye Olde Lens Shoppe."
I have two choices. I can make one lens that will cost me $850 to manufacture. Once distribution, marketing, packaging, shipping, warranty service and other costs are added in, I figure I can sell it at an MSRP of $1,800 and offer it as a low-budget lens. I will sell 50,000 at a profit of $200 each – $10 million
On the other hand, I can add about 15% to the cost of manufacture and make a much better lens that I can sell for $2,500. Most of my other costs are embedded and not going to change. (My warranty costs might actually go down, because there will be fewer repairs and replacements of the more expensive lens, on the other hand, I'll have to share more profit with retailers). By investing the extra 15% I now have the following: $200 original profit less $150 added costs plus $700 higher price less additional $200 to retailers for the higher costs item, for a net profit of $550 each. But, I only sell 40,000 units. Thus my $550 profit on 40,000 units is $22 million.
Hmm...since I've already invested 85% of the cost by making a cheap lens, why not add another 15% to my manufacturing costs, put a red ring on it and more than double my profits?
It don't cost that much to make a lens esp if you're making 50,000. Depending on where you are making it and where you are sourcing your parts from esp. Most of the cost is upfront in dyes for the barrels, switches, hoods, and other custom built parts. Motors and electronics are cheap as hell and the cost of R&D is not much but a few people who know what they're doing. Auto focus and IS has already been worked on long before this lens i would assume so that don't cost anything besides those few people to Dial it in for the lens. How much your glass cost depends on who makes it and does that company do the polishing or do you do the polishing. Polishing yourself does not cost that much. Where is it put together can add a bit, esp with local regulations and taxes. If Tamron sells the 150-600mm at $1069 then it probably costs them $400 to make it tops, they sell it to the dealer for double or close to making $300-$400 profit and the dealer make a few bucks on the $1069 customer price (usually the dealer buys it 18-20% off retail price in the Lens and SLR market). Not much Marketing is needed as most of it today is in the form of youtube videos with the gear coming from a dealer themselves. Repairs are cheaper than you want to think, remember all you're doing is paying a few people to repair and you're still getting the parts cheap as hell.
I doubt you will be selling 50,000 600mm lenses though...if it is a amazing seller you may sell 5,000 of them. If it is something like a Canon lens then you can have it on the market for 20 years thus the costs get even cheaper year after year and you will sell lots more esp if it is the $30-$40 to make 50mm 1.8 STM.
If it is a Red L lens then the quality control cost go up, you most likely are making the glass yourself so that goes up, more costly R&D esp with the coatings up front, etc.
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