dscline,
Even if the cost of manufacturing an Insteon dimmer is the same as manufacturing an X10 dimmer I would not expect the two to be at the same price for several reasons;
This dont necessarily justify the price increases. I'm also very annoyed about it. Actually, after seen the SimplyAutomated evaluation package I'm back considering UPB again. I might do a small investment in UPB now and reevaluate all the technologies again in two/three years.
Even if the cost of manufacturing an Insteon dimmer is the same as manufacturing an X10 dimmer I would not expect the two to be at the same price for several reasons;
- R&D Cost - SmartHome spent several years developing a completely new protocol from scratch. This is not free. The financed this R&D as a capital investments and theymust recoup this investment in every device that they build. On the other hand, the R&D for development of the X10 protocol paid out decades ago.
- Marketing Initiative Cost - Driving the advertising for a new protocol costs a lot. You have to build alliances, give training, pay advertising companies. THis is a huge investment. You dont have to do any of this with X10, as most of the DIY public is already aware about it.
- Value Proposition - This is business. If your product offers a better value, the you have the right of commanding a higer price (to get a higher profit) - even if the production cost is the same. Thats why we pay higher for a\the newest Gillete razor.
This dont necessarily justify the price increases. I'm also very annoyed about it. Actually, after seen the SimplyAutomated evaluation package I'm back considering UPB again. I might do a small investment in UPB now and reevaluate all the technologies again in two/three years.