Actually it's not really entertaining at all as the subject matter is the C605.

No wonder a search on AVSIM returns screeds of garbage.

sarcasm bro.....sarcasm

 

 

sarcasm bro.....sarcasm

 

Sarcasm?

 

Oxford dictionary definition: "The use of irony to mock or convey contempt"

 

Sorry but I'm at loss to see any irony or mocking in the post ...bro.

Sarcasm?

 

Oxford dictionary definition: "The use of irony to mock or convey contempt"

 

Sorry but I'm at loss to see any irony or mocking in the post ...bro.

oh I don't know. The fact that I said this was entertaining.

 

Having said that, lighten up, it's only a flightsim forum

sarcasm bro.....sarcasm

In future please ensure your sarcasm is enclosed in [sarcasm] tags to ensure other users are not confused by your sarcasm.

 

Thank you.

 

G

 

:-p

Forum threads often stray off topic and take on a new life or two, or three, or more depending upon the the moderators tolerence level on a given day... :fool:

Forum threads often stray off topic and take on a new life or two, or three, or more depending upon the the moderators tolerence level on a given day... :fool:

 

Agreed- not what I had expected when posting this thread. Anyway, where is the best place for us to track to the progress of this beauty?

It's too early in the process for us to begin anything like a slow rollout but our Main Site will be the spot whenever that process begins.... :wink:

I can only assume you didn't read what I wrote very well.

 

I did not say 'recover' the investment I said 'return' on investment (ROI). Since you obviously have a economics book somewhere I don't think I need to explain the difference to you.

 

Really if you compare the FS addon market to the automobile industy there are some similarities. Premium cars have a much higher price than standard cars, they tend to have more features and functions ,and they take longer to manufacture than standard cars.

 

But there's absolutely no way a Ferrari would be the price of a Toyota. Sure they'd sell a lot more cars but,they'd get a terrible return on their investment.

OK. Yeap, that's the problem of have a conversation in a foreign language. I know the terms in my language, not in english, that can be a source of confusion. But  recover the investment means that iROI is equal to 0 so is not very problematic.

 

As a vendor, the best price tag is which maximize your revenue...in order to obtain all the money from the market. If this amount of money is less than your investment...You are out of the market. So there are two lines of actions. Try to find the better price tag and of course keep as lower as possible your investment. This is linked to the ROI as you know.

 

For your product, exist a maximum amount of money which you can extract from the market. For this reason a price constraint exist.

 

The point here is, that the market have constraints (i.e. price constraints). You can develop a wonderful addon with amazing features...And you made a huge investment....For this reason....you establish a high price tag.....Then Customers do not buy it as expected...so your sales are lower. Here there are two posibilities:

 

-Catastrophic scenario: you cannot recover your investment.

-Aceptable scenario: You have a positive ROI, the higher ROI possible? nopes.  most common scenario.

 

It exist a third scenario. A price tag which maximixes the revenue (with less variable cost of course) means more benefits, a higher ROI. A person who only studied the first two scenarios is losing money. YEap we can be happy because is aceptable and not catastrophic...Yeap, it is a point of view.

 

What I am triyng to say. A high price tag doesn't means higher ROI, a high price tag can decrease your ROI to a negative value. More elasticity in the demand, more impact of the price tag in your ROI.

 

Nice example. A key concept is missing in your example, economies of scale. Why a Toyota is cheaper? Less investment (cheaper materials, economies of scale...) Lower ROI? Depends of the BAI, yet? and BAI is linked to the units sold.

You linked price tag with ROI and you forget a key thing, what I am trying to bring to you mind....relation Price/Demand. A high price tag can turn a viable project into a nightmare (- ROI).

 

What can you do to obtain the maximum area possible beneath P-D curve (of the Price/Demand graphic)?

As I said prevously, there are some mechanisms. Segmenting the product (ie. Basic, Pro, Training) for example is one forbidden by some developers.

 

And how do you know this ? what is your basis for this claim of highly elastic demand for the FS addon market ?

 

Everything I know about the FS addon market (from my years of experience) , indicates the demand is not highly elastic.

 

So I'm very interested how how you come to such a different conclusion.

Highly or not, this is an elastic market, we agree?. The degree of elasticity is not important here, the point here is a price tag changes the demand. It is a qualitative analysis (no numbers are used).

 

There are lot of substitute goods and services for FS addons...so it has an elastic demand. We do not need data for that (or now economist don't only fail in the predictions, also in determining actual facts). In the last years a lot of good developers came and now this is a very competitive market (maybe not for an avionics vendor, this is an overall view of the FS addons market)...So for this reason is highly elastic for me. Of course, as I said, it a qualitative analysis.

 

How do you come to a different conclusion? Experience doesn't means nothing...can you be more explicit, please?

So any updates on the Challenger 605? Will it also include a CL-605 MSA? Lets keep this on topic

 

The CL-605 MSA model is interesting because it is a Boeing Maritime Surveilance Aircraft with Poseidon technologies on a Bombardier Airframe. That would go well in my hangar for Maritime Patrols

 

http://www.boeing.com/defense/maritime-surveillance/maritime-surveillance-aircraft/index.page

I have no intentions of doing anything like that... I don't do that type of stuff, not to mention that aircraft doesn't have a PL21.

Nope, Corporate is what we do so we'll stay in our lane.. :wink: You could do a livery with the Paint Kit though.

It's a pity that I no longer have ready access to KGYY, as that's where Boeing hangers their corporate fleet of Challengers. It would be interesting to take a peek and pictures of their aircraft.

I'm very excited for this to release.....in the next 6 years.

It won't be that long but if it were it would be worth the wait.. :wink:

It won't be that long but if it were it would be worth the wait.. :wink:

Keep your steady pace Ron, I'm absolutely sure it will be the "must have"Corporate jet(with the V3 of the Citation X :wink: for me). People are sometimes so impatient

 

Cheers

 

Pat