Hacker Newsnew | comments | show | ask | jobs | submit login

Yeah I agree. If the margins are that high, then you'll have a ton of competitors come in, which will end up lowering it in the end. It may be possible in the beginning, before the competition forms.



Pro audio equipment has pretty high margins. The barrier to entry is fairly high (lots of R&D involved), so there aren't a ton of compmetitors, and the competitors like making good margins so the prices never get too low (improving technology and cheaper materials also helps with that). If a competitor tried to own the market by selling equipment at consumer margins, they'd probably starve on the low volume they'd get.

-----




Guidelines | FAQ | Support | API | Lists | Bookmarklet | DMCA | Y Combinator | Apply | Contact

Search: