Why Is The Signoscope So Expensive?

Another thread, on detecting watermarks, raised this issue for me. Why does the Signoscope cost $450-550 dollars depending on supplier? How in the world can it cost so much to manufacture this device? Is it simply because no one has produced/can produce a knockoff that works and thus the monopoly on the proprietary design permits that kind of a sale price? Surely the materials are not that expensive nor can the production process be that complicated?

Or does it contain a secret kryptonite-platinum alloy decoder ring that reveals the dasterdly hidden watermarks?

What am I missing? Enlighten me, please.

Addendum: Okay, so it's available on Amazon for $300 and the lower priced version is available for $150-200. But the question remains, why even $300 for a device like this? It doesn't have precision-machined components or precious metals in it, does it? And why the difference of $100 or so for the additional features of the T1?

Executive Summary: short production runs are murderously expensive.

Reverse Engineering: any light source is easily characterized, any optical coatings are readily characterized, etc.

Best Use: if you are a bourse dealer, put one at your table, and let attendees use it for free. Builds traffic.

Alternative: add a coffee can, and charge a buck-a-stamp, either for yourself or your favorite charity.

Cheers,

/s/ ikeyPikey

Well, maybe for the same reason a Porsche costs more than a Chevy. It is made in Germany.

You can find it even cheaper than Amazon on ebay, here:

http://www.ebay.com/itm/SAFE-9886-S...371204651500

I think Ikey has it about right. Any product like this will have a significant cost to design and test it. If you can spread those costs out over millions of units, that cost is negligible on a per-unit basis, but if you're talking a much smaller number, those per-unit costs become much higher. That and there isn't really a lot of competition for this product, meaning there are no external pressures for them to lower the price.

This surprisingly high cost annoyed me as well when considering the purchase Tough I acquired mine (edit!)(T1) for 'only' $300 some 4 years ago. As you say, it's really a very simple thing - there's no 'secret kryptonite-platinum alloy decoder ring' so the manufacturing process shouldn't be that complicated. I guess it's about the design cost versus the relative limited market, as has already been indicated.

When I purchased mine I was in doubt if it would give value for money. Now, 4 years later, I have to say I have never regretted that purchase at all. I consider the Signoscope a must-have, as it has helped me to identify a lot of watermarks that I simply didn't find before. So after I got it, I have revisited a lot of stamps that I earlier assumed to have the 'least valuable' watermark - and I have identified many of them to actually be the more desireable. Especially for yellow-orange colored stamps the device is fantastic, as those are often simply close to impossible with fluid. Same for certain colored-paper British definitives with Edward&George. In terms of 'value-increase' to my collection, the investment has in that respect paid-off repeatedly. (And no - I do not hold any shares in 'SAFE' ...!) That's my 2d anyway

btw - I tested and compared the T1 with T2 - I would certainly pay the extra $ for (edit!) T1. Sticking to blcjr's terminology it's like comparing turbo/non-turbo Porches.

Edit as reply on addendum: I have the T1. The reason that's better is that you can apply mcuh more pressure, in an a quicker fashion - giving more clear and much quicker results. It's all about getting the paper clinged to a surface, so the pressure is the key. In terms of being helpful, it must also be easy/quick to use - T1 is much better in both aspects

A good illustration of design costs vs production costs are Intel (and other) processors for computers. The actual manufacturing costs on those chips are literally pennies (or maybe a couple bucks at best) and they sell them for hundreds or even thousands of dollars. However, the research and development costs are in the billions as they have to pay teams of engineers for years to design the things, plus the cost of building the actual fabrication plants are in the billions as well. But, when that's all said and done, their actual cost of making the chip is literally pennies per chip. That's a somewhat extreme example, but it's a good illustration that the actual cost of making the thing is only one consideration of many in how to price it.

It's cost around $ 80,000 for make the mould for inject the plastic of the Signoscope, but if someone sell it for $ 250 on ebay, that means some make a huge profit. A store in Montreal sell Lighthouse albums at 40% discount, a mail order in south shore of Montreal, still sell them full price, I guess the mark-up on those albums is 60% .

In general, the faster you turn over your inventory, the lower the profit margin you can sell it at. For an item that probably isn't a fast seller - which I'm sure the Signoscope isn't - markups need to be a lot larger to justify carrying it.

I have not seen the device in question, but we should consider the possibility that the case is made from a mould that was purchased second-hand; not every product needs a new & unique mould. If the name is 'embossed' in the case then, yes, it is probably a custom mould, and the price is up in the tens of thousands of U$D.

Cheers,

/s/ ikeyPikey