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Jack Forster's avatar

The problem is that if you're competing in a global market for luxury, your value proposition can't be relative only to your costs of R&D and you can't say that your R&D and tooling up costs are being passed onto the consumer for a product that isn't competitive at its price point. You're competing in a global market and your value prop is going to be evaluated relative to the global market. I think lots of folks will understand and even want to underwrite startup and development costs, but as Lotus points out that doesn't scale. And appealing to folks to please understand that R&D and tooling up costs are high and that those costs are built into the price structure is totally understandable, but it's a subtler form of flag waving but flag waving nonetheless. I don't know what the solution is really.

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Lotus's avatar

consumers will pay for the product and they will pay for the brand.

when it comes to a $26k steel watch with a generic case and caliber, what is the consumer paying for? the brand.

is the shapiro brand strong enough to move the planned 36 pieces per year? it probably is.

what if it was a 100 pieces a year? highly unlikely.

a 1000 pieces? not a chance.

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