The "REAL" cost of the device?

[criminal_bg]

not really too concerned about cost. the only cost that affects me is the purchase price. companies can mark up an item all they want to make the profits. what will i do if i find out the Note20 Ultra only cost $500 to produce, should i scream at Samsung and tell them sell it to me for lower than the $1k+ price point.

i would like to see a tear-down video tho, jus for the tear-down aspect, to see how its built etc.

 

[ClintRo]

Who cares about the "REAL" price? If your willing to pay the asking price, that is all that really matters. You want your favorite manufactures to make money so they will pay my stock dividend...LOL

 

[Deke218]

The real cost of the device is what I'm willing to pay for it. Nothing else matters.

 

[Mooncatt]

...and when all said and done they need to turn a profit and make shareholders happy because capitalism.

Capitalism requires keeping the customer happy too, which creates a pricing limit. Price it too high and you'll make the shareholders happy, until they realize no one is buying the phone and the company goes into the tank.

But otherwise, I agree with you and others that the real price is both near impossible to determine and pointless to be concerned with. These sorts of questions are usually steeped in jealousy. Not necessarily this thread, but in general. Eventuality someone will make a statement along the lines of, "If it only costs $500 to produce the phone, then they shouldn't be selling it for $1,000. It should be sold for $550." Then it's justified by claiming the company is big enough to either eat the loses or they'll make it up in volume. It's a completely unreasonable point of view.

 

[ezdoit]

Capitalism requires keeping the customer happy too, which creates a pricing limit. Price it too high and you'll make the shareholders happy, until they realize no one is buying the phone and the company goes into the tank.

But otherwise, I agree with you and others that the real price is both near impossible to determine and pointless to be concerned with. These sorts of questions are usually steeped in jealousy. Not necessarily this thread, but in general. Eventuality someone will make a statement along the lines of, "If it only costs $500 to produce the phone, then they shouldn't be selling it for $1,000. It should be sold for $550." Then it's justified by claiming the company is big enough to either eat the loses or they'll make it up in volume. It's a completely unreasonable point of view.

TRUTH

 

[Morty2264]

Yup.

I get why people look for that info. I don't feel it's all that useful or helpful though.

Run a restaurant and only charge folks what it costs you to buy the actual food. You won't last long.

This is very true. I used to be an assistant manager at a theme park's concession and the price we'd pay per bulk for things like pizza, burger patties, fries, etc was pretty surprising. Much more economically friendly. When we'd price a burger on the menu, though, it was definitely greater than ordering the price per unit of a bun, patty, etc.

 

[smoothrunnings]

You think someone will do a breakdown and find the real cost?

The cost will likely out weigh the price of the phones. As most people fail to include the "REAL" costs.

R&D
Peoples salaries who are on the project development team
The cost of buildings they work out of, their computers, the software, their phone systems, etc.
Then there is the manufacturing testing process, and re-manufacturing and testing process.
Marketing testing, manufacturing, and re-manufacturing.
Interest group studies for the new products (if Samsung actually does this, IDK).
and it all filters down to what we right now, the Note 20, 20 Ultra 5G.
Once it's finalized there is the manufacturing process, sort of the tool and die (sp?) of the process.
Once done, the Samsung showing, the shipping, and the entire process starts over again.

 

[donm527]

Of course... factor in cost in your case the cost of space the park charges and transportation, etc. In a building you have to consider electricity, utilities etc.... much easier to break down and make sense then in this scenario. lol, my parents owned restaurants and I've grew up in restaurants through my childhood and even tried my hand at owning a pizzeria myself.

But using a restaurant as an example, say you're shut down for a few months for say... a pandemic... months of rent and utilities and bills that just can't be shut off as easily as your store and you have to throw all that perishables away and restock... tons of money spent on top of $10s of thousands... into the 100s easily in the hole and going to take a while to get back to even... even though you have to adjust prices a little due to you cost to obtain them... you can't charge $25 for that $15 burger (I use $15 burger because you concession stand guys rip the heck out of us for a $2 patty) because you need to make up for the past 4-6 months.

Can't be raising my prices for two slices and a drink from $6 to.. $10... or even $8... nobody will buy it. Now I can change the cheese... go Sysco special instead of Grande... cut that with some Sam's club cheese to make my pies... then it gets oily and no one want to buy it for $6 then.

Anyways I forgot what I was talking about... but I think I'm gonna wake my daughter up and see if she wants to grab a couple of slices for lunch.

This is very true. I used to be an assistant manager at a theme park's concession and the price we'd pay per bulk for things like pizza, burger patties, fries, etc was pretty surprising. Much more economically friendly. When we'd price a burger on the menu, though, it was definitely greater than ordering the price per unit of a bun, patty, etc.