Well if you're so knowledgeable about the costs of manufacturing, in your highly educated and informed opinion, how much does it cost the manufacturer of a gun with a msrp of $1000?
First of all, tread lightly, sir. Very lightly.
This is a pure semantics game. When you say "manufacture", are you talking about the cost to make and assemble gun No.10,000 ? Or are you talking about the cost to bring gun No.1 to market ?
Big difference.It's true, the cost to make a gun after all the "bugs" are worked out is probably in the $200 region. But the cost to place gun No.1 in the gun store is probably between $5M and $7M US... IF you totally ignore the cost of tooling (that is to say, assuming you don't need to buy any new machine tools). It's the difference between those 2 numbers that pays for all the research, design, testing, materials, production, marketing, and sales of the rest of the lot. Which is the reason companies go out of business when they have several bad products in a row.
What your "proof" article does is
completely gloss over the costs to GET TO gun No.10,000. It doesn't consider the cost of developing 6 prototypes before the first production gun is ever made. It ignores the cost of making all he changes suggested by 100's of testers both inside and outside the company. It ignores all the cost of all the lunches and dinners it takes to get big name reviews to try the gun. It totally ignores the 2-3
YEARS of production it takes to finally "break even" with the accounting.
Sure, machining costs ARE dropping, but other costs don't magically disappear because of that.
This article sounds like some politician saying, "because a CAT scan only takes 10 minutes it should only cost $45", while completely ignoring the cost of the $5M machine that makes the scan possible.