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by pedalpete
1592 days ago
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I don't think the "building their own factories" is as cut and dry.
Here in Australia, many of these small to medium sized businesses do their own manufacturing in house. I believe it depends on margin and volume. The examples I'm referring to are Rode Microphones, Cochlear hearing aids, and ResMed CPAP machines, are all manufactured in Australia (though I'm not sure all of their world-wide manufacturing happens here, they could have other factories). Would love to get the feedback from people who may have any idea in where and why it sometimes make sense to do your own manufacturing. My issue with Peleton has always been that the cost for a stationary bike is more than the cost of my road bike, and about the same prices as my mountain bike. From my user name, you may be able to tell... I ride, but how many people want to spend the kind of money Peleton is charging to ride indoors? They got the early adopters who were willing to pay the price, but they may have run out of consumers. I know of a few people who LOVE their Peleton, I don't know of anybody who doesn't have one that wants one. |
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Bingo. The growth opportunities at this price point seem to be close to zero. Move the price point by a factor of 5, and maybe (maybe) that changes.
Meanwhile, you can pry my Racermate Computrainer from my cold, dead hands :)