Quote:
Originally Posted by JSH
Buyers want options - good, better, best. While making all your heat pumps super efficient you will save a bit through economy of scale the other guy is going to be offering people low efficiency units for 30 - 40% less. A good number of people - maybe the majority will buy the cheapest option even though it costs them a lot more over the life of the product.
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Is the actual cost to manufacture high efficiency really 30-40% more is my question?
I'm always skeptical that a thing that costs twice as much costs twice as much to make, especially when all the same components are necessary for function. The thing I always think of is a bicycle. You have to have 100% of the components to make a functional bicycle, so instead of making a crappy one for $100, why does a really good one cost $5,000? How does one get from $100 to $5,000 bending metal in roughly the same shape?
Add bicycles to the list of corrupted industries I'm going to dominate (beds are next).