Given the very long model production-life, amortisation would seem to be a bit of a red-herring....surely a return on development capital would be more appropriate, when most production-runs are going to be around 50 years for a proper design like the Cabri.
A low margin will mean better sales, which ,in turn, will give a better profit volume.....It's the old TESCO*maxim....pile it high, sell it cheap.
Mr. Cohen was happy to make a penny on a bag of sugar and sell a thousand.....whilst his competitor made 5 pence a bag and only sold a hundred.
Yes, I know it's a huge simplification, but the basic principle holds good.
Mr. Guimbal is obtaining a realistic return for his endeavours and seems to have a very healthy order-book.....his standing costs (buildings, plant,machinery) are already covered to ramp -up production to keep his factory buzzing , say 16 hours a day, will (assuming a present 8-hour day)
will double (almost) his labour and materials costs, ditto with fuel, Power etc.
THEREFORE , THE COST PER UNIT WILL TUMBLE.
If this is in part passed on in a more attractive price, the potential owner-base will expand exponentially.
Unlike other "budget" helicopters, the Cabri is well-designed, inherently "right", with no cost-cutting in critical areas....the result, as we are seeing, is a long-life, reliable machine which is not going to "calendar" out of time nor , it seems, suffer main-blade failures or other critical -component recalls for expensive rectification.
If I were a pilot, looking for a small ,modern 2-seat machine, I would buy one in a heartbeat.
I must confess the lack of warranty, back when it was initially marketed, seemed to me to be a fatal ,basic , marketing error.
I was wrong....better qualified people than me, evaluated the product, paid their cash, and have proved that they and Mr Guimbal have sound judgement.
It is great to see a business like this making a terrific sucsess of a "right first time" product.
