Analyzing the $500 Buying Price of the E-Cat
It has now been announced by Italian inventor Andrea Rossi that the price of the soon to be launched E-Cat heaters for home use is pegged at $500 each. This pricing stirred various discussions and sectors (an interesting discussion on this issue is running on Vortex mailing list) who state that the Low Energy Nuclear Reactor powered device couldn’t be sold for less than four times this price.
Why is the $500 cost of an E-Cat unit believable and reasonable?
The main disadvantages of the Rossi energy catalyzer device are that some people may still have some problems believing that it really works and it is a new product that needs getting used to.
On the other hand, the controversial cold fusion technology powered energy catalyzer device can also be manufactured at low cost. For one thing, the E-Cat core cell is not expensive and the rest of the energy catalyzer device including the metal cabinets, controls, thermostat and wiring are not that expensive either.
Let’s admit that the E-Cat saves huge amounts of money for the user, over the long term, but it has yet to break into an existing market (the ones of boilers and home furnaces). Elementary, it is better to introduce the Rossi ECat device in the general market by using price points of competing products.
In fact, in order to gain traction and popularity of the masses, it is likely that a new device would try to undercut the competition with lower product prices that would attract millions of customers, hence a larger market share.
At a price of $2,000, not many people could afford the ECat device. On the contrary, it would only be available to the rich, who are wealthy enough that it does not matter to them if they save money or not.
So $500 sounds more close to the real price, if you take into account that the device is supposed to be a mass energy solution and not just a niche device. Plus, let’s keep in mind that since the first Ecat demonstrations back in 2011, Andrea Rossi has always insisted that he wants many people to benefit from the clean and safe energy catalyzer.
A $500 Ecat home unit is the chance he has to fulfill this promise.