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To: Kevmo

You know, the only thing I see that’s odd is why is Rossi talking about selling the home unit so cheap? First rule of marketing is that prices should be based on value, relative to the next-best alternative. If we’re used to paying, say $50 a month for heat now, he ought to be able to get more than $10 a month for a home ECAT.


8 posted on 01/17/2012 9:12:20 PM PST by bigbob
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To: bigbob

Value pricing works when the competition is sluggish. In this development, competition will be fierce and swift.


10 posted on 01/17/2012 9:53:22 PM PST by Kevmo (If you can define a man by the depravity of his enemies, Rick Santorum must be a noble soul indeed.)
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To: bigbob
Presumably if you have something that costs only $10 available to replace something costing $189 a month (winter average heating costs in the Mid Atlantic) , the demand will be INCREDIBLE ~ and if production can be ramped up to meet it, the price of the alternatives (essentially "coal" burned in power plants in the South, and oil in the North) will CRASH.

Welfare costs for displaced employees formerly involved in the oil, coal and power production and distribution industries could be sufficient to make it difficult for employed folks to pay the taxes to support them.

Rossi's device could very well be OVERPRICED!

25 posted on 01/18/2012 3:06:20 PM PST by muawiyah
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