StockHobit I'll answer your question (dredge cost)
(I'm going to answer the question in the manner that it was asked...this is a mixture of my opinion, personal business experience in my own company, and reading between the lines on things Alan has said to me...take it as you will...but I will answer the actual question that you asked)
what are we comparing in your scenario...gold dredge builders 5k dredge vs their 50k dredge to put it simply (or 6k vs 60k...but it's all relative)...first of all I'm going to be loose and optimistic but you'll get the point...the most expensive piece is the motor...well first of all...there is 2 motors vs only 1 on other model...secondly they are the premium german motors that had to be machined and customized to fit the dredge (shipping, machining, time spent, higher price units, etc) vs the usual subaru weaker engines...third is that we are comparing a 6' dredge to an 8' dredge which means more parts...next is that he also merged the 3' design with the 8' design which again is more parts and more cost...lastly is that all of this is a limited production that starts and ends with this one sale more or less...this alone bumps the price up to 20k if I were selling the unit in my company...next is the time spent in advance to design the model...this was not his usual assembly line model...it's a pain to go outside of your assembly line and make a special unit of anything not knowing what you may or may not run into as far as problems and try to make a guesstimation as to what price you should charge for an unknown amount of work as well as an unknown amount of cost...I personally charge a huge premium for that because I simply don't want to do it because I don't know what I'm getting into totally...so you have to entice me...so what I personally do is take the fair markup of 20k and double it to ensure ample buffer...this way if everything goes wrong I can at least break even...even if I'm only half right about everything...I also factor in warranty...the fact that I may have to replace anyone of the initial 20k parts...well I've already charged for the replacement essentially so I'm good...this is usually how premium companies selling premium items treat you so well...because you basically have already paid for everything in advance including "good service"...so now we are at 40k...the extra 10k would be for just that...the extras...maybe involvement in the company...maybe the trip to Africa...maybe for allowing the financing...maybe because there is no competition as trusted by Bryan as Alan and he can command that price and Bryan knows it's fair because Alan has shown from the past that he will "earn" the money somewhere in the overall project...by the way I haven't heard of any other future compensation from SNEY to Alan other than dredge payment...what I think is going to be Alan's future compensation is a sale of 12 more of these dredges at the same price and easier to make next time because the blueprint is already done...me and Alan think a lot alike...and the truth is that I would have arrived at the same price in my head...all that risk, the traveling, having your entire company commit to the "special project", etc...I always make sure there is plenty of compensation there to absorb mishaps, unknowns, warranty work, traveling, designing, personal financial risk, etc...if I were Alan 40k would have been enough but the extra 10k make it easier to make a decision of YES let's do this...bottomline...charge what the market will bear...nothing more nothing less
...mylife
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