What are you subsidizing with a machine tool purchase?
• The major machine tool builders include margins of 40% -55% in their pricing
• The major builders spend upwards of $5 Million to $12 Million on IMTS to reach a few thousand people not to mention international shows.
• Regional distributors participation in local shows and open houses are all built into cost.
• Builders and distributors employ many non-productive people in their organizations that raise overhead, therefore increase cost.
• Quality employees and competent sales people are hard to find, expensive to train and turnover is high. You know this from your own experience.
• Warranty and installation costs are estimated high to cover all eventualities.
• Lavish sales facilities are burdened with debt and high overhead that drives up cost.
• Builders create lower prices by removing expensive technology.
• Turnkey's include exorbitant engineering costs that are usury in most cases.
• There is limited disclosure with most sales.
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