Thursday, September 08, 2011 11:34:03 PM
This is a universal principle in marketiing. Examples include cars, TVs, computers and just about any other product you can name.
KBLB will NOT, repeat NOT sell pure spider silk to the garment industry unless it's willing to pay the same very high price that the high tech fiber industry wlll pay.
While you may get a very very few "Lambourgini" type consumers who will pay for pure spider silk in their garments (some wear dresses covered with real pearls) the overwhelming bulk of the silk garment market for KBLB's products will be for a lower quality lower priced silk.
How many cooks use frying pans made of solid gold? (Actually there are a couple). But most use stainless steel or iron or ceramic depending on their budget and preference.
All this talk about clothes of pure spider silk is like talking about selling frying pans of pure gold. (Because of heat capacity, gold IS actually better, but hardly worth the additional price to all but the obscenely wealthy (who don't do their own cooking anyway).
KBLB has the ability to make silks of just about any percentage of spider silk protein it wants to. It would be stupendously incompetent to fail to provide a range of qualities at a range of prices. In fact, part of the holdup in getting an order for Monster Silk may be determining where would be the best market position for it's level of quality.
The point I've tried to make that everyone appears to have missed is the the low range of the high tech fiber market (as in products for the security and structural integrity market!! is probably a much better fit than the garments industry. Monster Silk is about 50% SSP (that calculation was included in a past post) giving about 80% of spider silk's strength. That, IMHO is probably considerable overkill for the garments market and something like 25 to 30% SSP would still be far superior to silkworm silk and meet that market at a much lower price than Monster Silk would fetch in the low range of high tech fibers market.
If you tried to sell Monster Silk in both markets you'd have to settle for only the price the lower market could support and forgo the higher price. (You cannot charge two different prices for the same material for different uses.)
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