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Why do sound chips cost so much?.


darren01
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Looks like there is an opportunity here for someone to start a sound decoder company. Charge a fair price, don't do the rip-off Britain thing and there will be piles of profit to be made. Why hasn't someone done that yet?

 

Perhaps Hornby has already done this with their TTS sound ?  

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One other thing to note on prices is that it cost about the same to buy a decoder loaded with sound as it does to buy that decoder empty, why is that?

 

Also a fully loaded Zimo Decoder costs about £95 but if you blow it up most Zimo dealers will replace it for around £25

 

I suspect the true cost of said decoder is nearer £25 than £95, but no one will ever sell them to us for anywhere near true trade price, and why should they, the first rule of business is to charge as much as your customers will pay and not a penny less, and when those who want sound prove daily that they are willing to pay the higher prices.

I can assure you that trade price is absolutely no where near £25, ESU Loksound anyway. How do i know that, I create and load the sound files that the Chinnor and Princes Risborough Railway sells.

Again, another example of blame the retailer.

 

Personally, I do not think the trade prices are a fair price to the retailers. Loksounds and Zimos are in effect, old technology now. nothing leading/cutting edge about them. If ESU charged the retailers a reduced rate, i bet 9/10s would drop the prices. I know we would at Chinnor.

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Technology is a relative term in some ways. In strict technology terms I think all train DCC tech is antiquated and in many ways it could be described as crude and basic. In application terms it is a bit different as if a particularly application relies on old tech (and there is nothing wrong with that if it works) then a vendor whose offerings are still antiquated in absolute terms could still be significantly more advanced than rival offerings. 

 

I tend to agree that Hornby TTS is a low cost alternative option. I don't think it works as well for steam but I find the TTS diesels are pretty good as sound equipped models go. I'm not into sound at all but my boy has some TTS diesels and he likes them.

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Meanwhile, back in the real world....

 

If there is piles of profit to be made why isn't there "Virgin Model Railways" or "Amazon Trainz"?

 

As Pete Waterman often says "The only way to be a millionaire in model railways, is to start out as a multi-millionaire."

 

Mike

I believe that's what I was saying . . albeit a bit tongue in cheek. :)

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