Rapid Prototyping Equipment Financing
RP Materials:
Pricing Power And Pricing Powder
You may be completely satisfied with the range of forming materials available for a platform, but would other people be happy with the selection? The answer to this question might not be very important when you acquire a system, but it's very important when you want to sell it.
In general, RP systems with a wider range of materials from multiple sources will retain value better than alternatives. RP systems that have a limited range of materials and those for which materials are only available from the systems manufacturer are likely to suffer compared to more versatile platforms.
There are two reasons for this:
- In market segments where there is competition in materials, the price of materials will be lower than in segments where the manufacturer has a monopoly on materials.
- In market segments where there are multiple suppliers of materials, materials suppliers strive to offer materials suitable for a wider range of applications.
There is one kind of exception to watch out for here: If a vendor offers a new RP system with a new materials technology that is inherently much cheaper than established materials, even if that vendor has a monopoly on materials, the new platform will benefit because the running cost of the platform will be lower. This benefit may be offset by other considerations, but it is a positive factor nonetheless.
The key questions about materials for a particular platform are:
- Are materials available from suppliers in addition to the manufacturer?
- Does the range of materials for the system make it more widely applicable?
- How does the cost of materials for this system compare to the cost of materials for other systems?
It's also wise to think about whether materials for a particular platform will change in price in the near future. If competition is increasing, prices are likely to fall. If the vendor has a monopoly on materials, there's a greater risk material prices will rise. This last possibility is something to watch out for, particularly if the value of a platform may be undermined by other trends in the RP field.
2055 Reading Road, Suite 240
Cincinnati, Ohio 45202
Phone: (513) 333 0221
Fax: (513) 333 0887