it costs Gillette to produce a $3-$4 fusion cartridge? Not taking into consideration the R&D and marketing (which I am sure is sizable) but just the raw materials, tooling costs, and labor to produce one? Are we talking about a matter of nickels or dollars here?
So what do you suppose...
- Thread starter mastinomaven
- Start date
Way too much....
I stopped using them for that reason.
I stopped using them for that reason.
OldSaw
The wife's investment
It really doesn't matter, as competition between manufacturers and the gullibility demand of the buyers will ultimately determine the end price.
- Thread starter
- #4
True, but it does matter because I am interested in how much profit is made per cartridge. If it costs, let's say, a dollar to make each cartridge, I cannot begrudge the price they are charging. If it costs a nickel, then it's extortion combined with that gullibility.
OldSaw
The wife's investment
It's probably closer to that dollar, maybe even more. The machinery involved can't really be used for anything else, then you have to factor in labor, transportation costs and retailer mark-up. As much as we hate the pricing, I'm sure it is reflective of the elements that go into it, rent, labor, transportation, profit, etc. The thing that amazes me most, is that people keep buying them.
As a former P&G employee and stock holder, I hope they are very profitable. One thing that I am certain of, if they are not making at least 10% profit after all expenses and shipping at least one million shipping units, (cases), per year, they will drop the product. I don't anticipate the price dropping until they have amortized the cost of development AND rolled out a new line to replace/supersede it.
OldSaw
The wife's investment
Interesting, however, that insider could be just a factory worker that is not aware of ALL the costs. Paying stars and athletes to promote a product is all part of the overall cost and is figured into the marketing budget. You can't just look at the raw materials that go into the product and say it is X. By that logic the Mona Lisa is only worth about $25.
I'll take it.
- Thread starter
- #9
Like the above poster's said -- you can't just break it down into the simple manufacturing costs. Huge amounts spent on R&D, marketing, management chain, taxes, transportation, etc, etc.
I got no problem with what they charge -- it is a fair market, capitalist society and if they can get the price they ask, good for them. No one is making anybody buy their product and there are obvious alternatives at every store I have been to. Do I buy their product? No, I don't. I have explored other ways to shave, just like EVERYBODY else on this board.
I got no problem with what they charge -- it is a fair market, capitalist society and if they can get the price they ask, good for them. No one is making anybody buy their product and there are obvious alternatives at every store I have been to. Do I buy their product? No, I don't. I have explored other ways to shave, just like EVERYBODY else on this board.
Sure you can. I think the OP was really more interested in the raw costs plus tooling, not the marginal cost. It makes for an interesting discussion, I suppose. Is it useful or helpful info? Can't say.
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well I'm sure glad I took up wet-shaving.... not that I'm saving money, but I have a darn fine collection of shaving items and am very happy.
- Thread starter
- #13
The fact that it costs less than ten cents to make one of those $4 cartridges should, I hope, dissuade anyone on this board from continuing to buy them...that is, if there is anyone here left! 
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