Signs of (Olympus) Life

Started 2 months ago | Discussions thread
cathal gantly Regular Member • Posts: 416
Re: Pulling out of N-America?

Danielvr wrote:

No, you are missing my point. A local market presence carries a cost associated with doing business in that market. Staffing costs, building costs, tax, marketing, support, etc.

Sigh. Why do you think I arrived at 10,000 units? Which in your estimate would allow for only $1MM in operational costs -- don't you agree those costs look a tad more realistic when those 10,000 units bring in closer to $8MM?

The hard fact here is that neither you or I know the potential margin on each unit sold.

Getting a product onto the shelf is a costly exercise. When I was a Nikon user for example, I discovered that Nikon parent sold product to Nikon Europe. They had a margin. Nikon Europe sold to Nikon UK. They had a margin. Nikon UK sold to retailers. They had a margin.

Today, this type of structure isn't realistic or necessary. If I'm ordering online, direct from the manufacturer, why do I need a local presence? I don't. A dealer network in any product line (and I have worked in the motor trade as an example) adds costs that the end customer pays.

I think a margin of $100 per unit is generous to the point of being unrealistic. What do you perceive it to be?

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