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Junior Varsity
Uli Behringer of The Music Group Q&A
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<blockquote data-quote="John Roberts" data-source="post: 51282" data-attributes="member: 126"><p>Re: Uli Behringer of The Music Group Q&A</p><p></p><p></p><p></p><p>While Uli doesn't need me to defend him, I don't think you appreciate the high cost of replacing finished goods. Every business has a simple profit and loss balance sheet accounting and would run out money and out of business if they experienced significant across the board failure rates. A company selling value products with narrow profit margin, has even less buffer, to support large scale product replacements. It does not take a very high failure rate to consume all profit margin. Something that companies review when setting warranty duration. </p><p></p><p>I see no reason to doubt the Thomann numbers. I suspect there can be a handful of high profile isolated cases of SKUs with unusually high failure rates (he isn't the only mfr to experience problems with ribbon cables) but in the average for all products, he is obviously profitable, clearly. Do the math. </p><p></p><p>JR</p></blockquote><p></p>
[QUOTE="John Roberts, post: 51282, member: 126"] Re: Uli Behringer of The Music Group Q&A While Uli doesn't need me to defend him, I don't think you appreciate the high cost of replacing finished goods. Every business has a simple profit and loss balance sheet accounting and would run out money and out of business if they experienced significant across the board failure rates. A company selling value products with narrow profit margin, has even less buffer, to support large scale product replacements. It does not take a very high failure rate to consume all profit margin. Something that companies review when setting warranty duration. I see no reason to doubt the Thomann numbers. I suspect there can be a handful of high profile isolated cases of SKUs with unusually high failure rates (he isn't the only mfr to experience problems with ribbon cables) but in the average for all products, he is obviously profitable, clearly. Do the math. JR [/QUOTE]
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