you are forgetting that the cost of producing a product is not the only factor you have to take into account when setting a price. You have at least:
- transport
- packaging
- cost of maintaining a business ( installations, utilities, taxes, etc )
- the cost of labor, in this case people writing software for the product to work and also sales and support and whatever more is needed.
- and quite important too: since in this particular case you don't pay for software improvements, the cost of the cable must account for the fact that when you purchase it, it will be the only time you will be spending money with it.
So lets say that you make a product that costs 10usd to make, package and transport to the customer, but you only have one customer and he will only buy once. will you sell the product for 10usd? or will you sell it for 10 million usd? 10 million usd would allow you to pay for a 8 person team for 10 years making 100.000 usd year before taxes.
I have a cloned cable and the reason is, I use it once in a year and I don't think it is worth it to pay 200usd for a cable. but in all honesty, ross tech has the best pricing of all industry. they give you the same cable and price it so that enthusiasts actually have a chance to pay for it at a reduced price without loss of functionality while letting the bigger price for those that make money out of it. If the cable with vin restrictions would be priced at 100 usd I would certainly buy it.
Having said that, at a medium price of 300 usd, they have to sell around 3500 cables year to pay for a 8 person team making 100k without taxes per year each. I don't think that they are getting rich.
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