Originally Posted by krypton_john
I can't see how taking out the back seats and derating the engine will cut much from the price despite making the machine useless for charters.
I think this thing is called market segmentation.
Remember, the Raven I (on which the Cadet is based) is old technology. Development, tooling, etc., have long been paid for. It's the cash cow that now has to pay for future developments. In that sense, the bulk of the sales revenue from the Raven I is gross profit and goes against overheads. The Cost of Sale ("direct production cost") should be low, therefore allowing Robinson in principal to considerably discount the product where they feel fit, without making a direct loss on each Raven I helicopter produced.
In marketing speak, "two markets A and B are segmented if you can sell the same product at a different price point in market A, without affecting the price at which you can sell the product in market B". Often, artificially taking out features or introducing use limitation, is done for the sole purpose of creating such market segmentation.
In that sense, the "making the machine useless for charter" is a necessary condition and design feature (not an undesired compromise or concession). Only now can Robinson sell the Cadet at a much lower price (competing with Guimbal) without risk of destroying the profitability of the 4-seater charter chopper segment that they dominated so nicely for years.