Riddle me this...(pricing rant)

Started by El Caballo, April 27, 2005, 07:45:32 PM

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El Caballo

An LED costs $0.10.

A lens to put over the LED costs $0.30-$0.60.

You'd think it's a lot more difficult to make a LED than to make a little piece of molded plastic, given that an LED is a little piece of molded plastic plus doped semiconductors, leads, etc.

So why does the lens cost 3-6x as much?

object88

Perhaps far more LEDs are manufactured than LED lenses, so the cost to produce them is lowered?

nelson

My project site
Winner of Mar 2009 FX-X

Torchy

I would think that (commercially) 75% or more of led's are used behind custom panels and there isnt a great need for them in the commercial sector. So, less demand, higher cost per unit.

nelson

Less demand = less competition = the manufacturers can charge what they like.
My project site
Winner of Mar 2009 FX-X

Hal

less demand = less consumption = it costs more to make.  90% of the cost to manufacture any of this stuff is the setup of the machines.  If you're making hundreds of millions of them, like LEDs, that gets absorbed.  If you're only making thousands, like the lenses,  its more.