Message-ID: <3AADB57F.883F0E14@regandesigns.com>
Date: Mon, 12 Mar 2001 21:51:59 -0800
From: "Hamid A. Wasti" <hamid@regandesigns.com>
To: lancair.list@olsusa.com
Subject: Re: Garmin 530 boycott
References: <20010311204612.LFGZ11114.mail2.rdc1.az.home.com@cx1149477-a>
Reply-To: lancair.list@olsusa.com
Mime-Version: 1.0

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Robert Dorsey wrote:

> The more complicated things get, the more you will see this
> approach by manufactures to help reduce the possibility of lawsuits.

I do not think this policy has anything to do with lawsuits.  It is the
manufacturer not willing to spend the $$$ supporting the first time installer
and risking their reputation at the hands of a bad installation.

> I think everyone is aware that liability is the main reason for the high
> cost of operation critical hardware.

That is news to me.  Things are expensive because the market is small.  After
Garmin spends $5M to $10M (just a guess) to develop and certify a box, they
needs to recoup the cost in the units they sell over the next few years if they
are to stay in business.  If you open up a a GNS430 and add up the cost of all
the individual parts in there, you will be hard pressed to get much over
$1,000.  The rest of the price is the development cost.

Government regulation do a lot to inflate the cost of bringing a product to
market.  Liability concerns do a lot to increase the cost of selling a
product.  But the bottom line is that the small number of sales is what keep
the price of the product high.

Hamid

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