Rossi Adopts Amazon-like Low Price/Low Margin Philosophy

As I have been reading recent statements about “killing” competition through low prices, I’m reminded of a statement from Jeff Bezos, CEO of Amazon.com who summed up his business philosophy thus:

There are two ways to build a successful company. One is to work very, very hard to convince customers to pay high margins. The other is to work very, very hard to be able to afford to offer customers low margins. They both work. We’re firmly in the second camp. It’s difficult—you have to eliminate defects and be very efficient. But it’s also a point of view. We’d rather have a very large customer base and low margins than a smaller customer base and higher margins.

Andrea Rossi has said recently that he will guarantee the lowest possible price for E-Cat technology, putting him firmly in the camp of Amazon, along with many other businesses (e.g. Wal Mart) who survive and even prosper using a high volume/low profit margin strategy.

With a product as unique and universally attractive as an E-Cat (who doesn’t want cheap energy?) it might be possible to charge a premium price and be very successful if you are the only game in town — and perhaps that is what Rossi is doing right now with the $2.6m 1 MW plants while he can. Once competition is in the marketplace things will be very different, and Rossi seems to be positioning his company to stay ahead through the Amazon strategy.

One thing about energy is that it is really an invisible commodity. You don’t see heat or electricity, so it’s hard to think of a way that a company like Apple would could make a LENR device look attractive and charge for the design aspect — unless you can make a generator an object of art. Most people, I would think, will be happy to have E-Cats sitting in the basement or outside a house where they can enjoy the benefits of the energy it produces without having to look the machine that makes it. Most people only look at their boilers, furnaces or air conditioners when they are broken.

With energy it is ultimately the cost that counts, and if Rossi and Leonardo Corporation can actually guarantee that they will always provide energy at the lowest possible cost they shouldn’t have a problem dominating the market.

  • http://www.replication-meyer.be.ma Stanislas Bauer

    I know the industrial prices structure. As described, the factory price of a single e-cat unit ( without control accessories ) should be under 500 €. No more !
    No relation with the price announced by Rossi. The first VHS video recorder I sold was announced 52.000 BF in 1979. ( equivalent to 2700 € now). 30 years later: 150 €. Perhaps Mr Rossi is a good engineer. I don’t believe he is a good economist or business man.

  • Kev

    Tell them. They need to know before they can care or not.

  • arian

    from http ://www.ecatplanet.net/forumdispl…e-Nuclear-Fuel

    Documented evidence for thermal energy observation
    in nickel and hydrogen, in 1959.

    This excerpt from Journal of American Chemical
    Society, 81,5032 (1959). Research by R.J.Kokes,
    and P.H. Anderson. They were studying adsorption
    of hydrogen on Raney nickel and observed “strange
    feature of exothermic reaction”. Perhaps if they
    had done an elemental analysis or calorimetry
    analysis they would have found thermal energy
    generation in excess of any possible physical
    chemistry reaction ( that is, a nuclear
    reaction), but no one can fault them, in 1959, for
    not doing an elemental analysis of the nickel
    after the exothermic reactions. What they observed
    predated the Piantelli work by 30 years, and the
    Rossi catalyst by over 50 years.

    Raney nickel can be made from nickel/magnesium
    alloy, with other elements added before leaching
    of the alloy to promote catalytic activity. That
    leaves residue magnesium in the Raney nickel, and
    can contain promoter elements like copper,
    strontium, and so on, depending on the initial
    alloy composition before leaching.

    Here is the procedure for Raney nickel synthesis,
    using aluminum as the leach element. It would need
    to be adapted for use with magnesium to make the
    volume of catalyst required for megawatt reactors.

    http://orgsyn.org/orgsyn/pdfs/CV3P0176.pdf

  • Brad Arnold

    If Rossi is going to adopt the “Amazon” model of low price/high volume, then this is very good news. Yet, it seems like just what Rossi would say to shake up Defkalion. First things first, lets see some working LENR generators for sale – while it is understandable that the first few went into secrecy, as volume increases there ought to be ample examples of working LENR generators in the field.

  • roseland67

    I have not seen, felt, touched or tested anything that he has to “offer” yet.

    When/if I do, I will be slightly less pessimistic.

  • http://www.choicedowsing.com kwhilborn

    A million seems awfully ambitious considering we have yet to see one(1) run longer than 18 hours before losing stability.

    Defkalion did not pay Rossi 15 million because his product is unstable. They should perfect it before unleashing dozens of broken products on paying customers.

    • http://www.choicedowsing.com kwhilborn

      and from what we have seen of the reactors. They are quite simple with no moving parts. They could probably sell them in a dollar store and make a profit.

  • s

    More claims perhaps made without adequate demos/proof to verify them. Although I believe that cold fusion/LENR works to some extent and that the Ecat works to some extent, at some point one needs to see some airtight proof for all these claims. Personally, I’m going to cut the time I spend following the Ecat/LENR saga drastically. There has been a lot of talk, claims, and articles the past few months. But, so far, I see nothing with the proof I need to feel this technology will be ready for mass production anytime soon. If anything substantive happens regarding the Ecat, it will most likely be in a mainstream news headline that I will see when I browse the news. I won’t make time anymore to follow all the websites, mailing lists, articles, etc… for this tech until the big, undeniable, breakthrough happens, if it happens.

  • WaltC

    Maintaining a price/margin lead will be a huge challenge without a doubt, but a harder challenge will be maintaining the technology lead as last year’s “Model T” version of the E-Cat evolves into tomorrow’s “Ford Fiesta” (or pick some other present-day mass-market car).

    Right now Rossi is filling the role of lone inventor for the E-Cat, and his spare time is spread pretty thin. His competitors, on the other hand, have catching up to do but they could quite possibly leap-frog him if they put enough scientists and engineers into evolving the product.

    I’m rooting for Rossi, but I need to remind myself that first-to-market doesn’t always end up being long-term-market-leader.

  • Thomas

    Let’s see how much Rossi is earning on each 1MW reactor when iSuppli has analyzed the parts 😀

  • Quijote

    Eeeh, my friends, that Sta. ist the parents!!, jajajaj

  • sapain

    ecat + thermalelectric converters + electric vehilce = freedom using rv`s u will b free of morgage and tax lol mobile life

    • Al D

      The thermalelectrics are a good idea, but to provide meaningful power right now they would price the whole thing out of the market. They need substantial economies of scale.

      • Al D

        Think Stirling generators!

  • arian

    Extraordinary Evidence of nuclear reaction in cold fusion experiment.

    Scientists at the U.S. Navy’s San Diego SPAWAR Systems Center have produced something unique in the 17-year history of the scientific drama
    historically known as cold fusion: simple,portable, highly repeatable,unambiguous, and permanent physical evidence of nuclear events using detectors that have a long track record of reliability and acceptance among nuclear physicists.

    http://newenergytimes.com/v2/news/2006/2006ExtraordinaryEvidence.pdf

  • Maurice Daignault

    Don’t they say that:

    “The proof of the pudding is in the eating”

    This product will sell at large… If it works…
    And I believe it does.

  • levis

    How long people can tolerate all this shit going on without independent verification? One more year? IMO if this is a scam it will be obvious inside the next six months and whatever the escape plan turns out to be, it will not work!

    • Bernie Koppenhofer

      Good Lord, man, he has demonstrated his reactor six times and LENR has been repeated hundreds of times around the world. He is fighting a huge, powerful Establishment that does not want this to happen.

      • Kim

        I agree

        Birthing Pains.

        If not Rossi, Then someone else.

        This is on its way…

        Help, and don’t be part of the problem.

        I have always asked “Why now”

        Are they going to start WW3 and distract
        us

        Or are they going to Let us go forward
        with an announcement on the Main Stream Media in all its Glory

        Respect
        Kim

      • levis

        This is not science because it bypasses the independent verification and replication processes of the scientific method!

        • RichyRoo

          Who cares?
          The cult of ‘the Science’ has gone on too long. Science doesnt have all the answers and its pointless to wait for it when there is a product available now.
          Who cares about the science, show me the wattage!

          • RichyRoo

            Just to clarify im not ‘anti-science’ or faith based or anything. I just mean that if there is evidence of energy then that is all the science we really need. Sure it will be nice and cosy to have some unintelligible mathematical description of the process, along with experiments to explore it, but cavemen were using fire long before anyone knew about the existance of the chemical reactions that cause it.
            Also the modern insistance on everything being ‘scientific’ is misguided and has more in common with religous thinking (using ‘The Science!’ instead of ‘The Bible’) and is often a case of bad science propping up bad policy (e.g Climate Change).

        • Gene

          MScience is sold to special interest look at what they did to Pons&Fleishman in the late ’80 they were ridiculized for all the people to see and I applaud Mr Rossi for bypassing the independent verification and non accepting money from venture capitalist investors,I wish him the best in this new year that is about to start a revolution on energy for the whole planet and we will be free from the parasitic system of government that we have.

      • Thomas

        I don’t think he is scamming intentionally … I guess he just overlooked something and is afraid others could see something he missed when they had the chance to have a very very close look on his machine …

      • bachcole

        Rossi was always in control of the demonstrations and always hovering around. LENR is not on trial here. For anyone who has looked at the evidence, LENR is a fact. But sustained and controlled LENR a la Rossi is still unverified.

    • Wes

      The accumulation of data suggests the LENR effect is real. Additionally, historical efforts (some well funded like Black Light Power) suggest that moving from a novelty effect into real energy production may or may not be possible, and may take years to perfect. Rossi’s claim is based on Focardi’s demo at the novelty level. Did Rossi make a breakthrough where others have failed? The Moment of Truth approaches…

  • daniel maris

    I think there’s a lot of good sense in this analysis. It may be that Rossi is looking to subsidise the domestic E cat initially from the sales of the 1MW E cats, in order to ramp up production till it gets to levels where economies of scale really kick in.

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  • morse

    And the rest of the world doesn’t care…