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So what does it cost to make an HR20

Discussion in 'DIRECTV HD DVR/Receiver Discussion' started by Tom Robertson, Oct 29, 2007.

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  1. ccr1958

    ccr1958 Hall Of Fame

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    Aug 29, 2007
    well i am going to try anyway...we shall see :)


    Can I purchase / own the HR20 DIRECTV Plus HD DVR, or will any order from weaKnees be considered a lease?
    Background: On March 1, 2006, DIRECTV instituted a program under which receivers are leased by default. This change had no impact on customers' bills, and in fact there were many advantages for customers: DIRECTV will provide a dish and installation for customers with new leased receivers. They will also provide support, after the warranty period, at reduced prices vs. the cost of acquiring a new unit. On the other hand, leased receivers cannot be re-sold and DIRECTV will replace them with refurbished units if they require service.

    If you order an upgraded HR20 from weaKnees, you may be able to have DIRECTV characterize the unit as being owned. To do that, you must call 800-DIRECTV and ask for the access card department. Tell them that you ordered an HR20, give them the price and tell them that you want it to be characterized as being owned. In some cases, the price alone will be enough to have DIRECTV characterize the unit as purchased. IMPORTANT NOTE: If you have a unit characterized as owned, you will NOT be able to get the unit (or a dish) installed for free or at a discounted price. In addition, you will NOT be entitled to any discounted replacement equipment should the unit fail. See below for additional information.
     
  2. spartanstew

    spartanstew Dry as a bone

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    Wylie, Texas
    If you paid over $700 for it, you have a chance. If you paid less, then it was subsidized by D* and it's a lease.


    Why didn't you just go through D* to get it? I called last month and got it for free (plus other stuff).
     
  3. ccr1958

    ccr1958 Hall Of Fame

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    you guys are prolly right...but i have been
    saving up some ammo to fire back to D*...
    if it don't work then no biggie....i have had
    many a plan fail.... :)
     
  4. ccr1958

    ccr1958 Hall Of Fame

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    Aug 29, 2007
    i tried about a month or so ago to willingly
    trade in my owned hr10-250 for a hr20 & i could not
    get anyone to budge off the 299.99(was not expecting the hr20 for free..but reduced)
    ....i as well as many paid close to 800$ for the tivo unit & only get 2 years
    out of it then it is pretty much obsolete if one wants
    HD...they skinned me on that deal...i feel anyway....
    plus i have had premier for years & sunday ticket since
    day one....if they don't want to meet me at some point
    then i will come up with another plan down the road
     
  5. dhines

    dhines Godfather

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    if i could just make this one point, i myself live part-time in mexico and many of my friends are the managers / owners of the mexican companies that 'produce' the goods that are shipped back into the US. bottom line is this, the only cost savings in mexico is related to less regulation and lower labor costs. i find it illogical that you insist that it is ligit to say $400 is the cost of a HD DVR if made in the USA, and at the same time say it cost $50 to make it in mexico. there is no way you can tell me that the $350 cost difference (per item) is due to labor and regulations.

    i challenge you to back up one singal statement with facts. i am sorry, but haven't thought through your point and just don't want to recognize you are wrong.
     
  6. Doug Brott

    Doug Brott Lifetime Achiever DBSTalk Club

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    dhines,

    I do believe that most people here agreed with your assessment. The equipment parts are, for the most part, a fixed cost in this equation. As has been noted, the HDD alone is at a minimum $30 and perhaps as high as $50 per unit .. that doesn't even take into account any other components that are necessary.
     
  7. RobertE

    RobertE New Member

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    Guess I'm going to have to haggle with the neighbor kids down the street the next time they set up their kool-aid/lemonade stand. Afterall, there is just no way that little glass of kool-aid costs $0.25. What nerve. :rolleyes: I don't even get to keep the glass. :mad:
     
  8. Ken S

    Ken S RIP

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    Feb 12, 2007
    So...has anyone here bought a razor lately?

    Think about it.
     
  9. rirwin1983

    rirwin1983 Legend

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    I think Chase is stating both the Manufacturing and Software Development costs, it may cost D* 100 to make the physical device, but another 200-300 in labor to programmers to write the software for the device
     
  10. Doug Brott

    Doug Brott Lifetime Achiever DBSTalk Club

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    I sure wish I got $200-300 per device for programming. Nope, the manufacturing costs are what they are. We'd like them to be cheaper, but unfortunately, they are not.
     
  11. Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    The number quoted is the approximate average cost paid to Pace and Thompson (perhaps with shipping?) per unit. Since DIRECTV does their own software, I doubt that is included.

    That said, there might be some licensing fees for Pace software, NDS software, NDS access cards, etc. in that $400 coming down to $300. Who knows? :)

    Cheers,
    Tom
     
  12. 40yearfan

    40yearfan AllStar

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    Aug 8, 2007
    So you are saying that DirecTV is selling these units to these retailers at a cheaper rate than what the units cost them? If they are leased units, don't they have to come from DTV?

    Why would DTV sell to these retailers? Wouldn't they do better just keeping them for themselves and leasing them without having to pay an outside retailer to sell these units?
     
  13. 40yearfan

    40yearfan AllStar

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    Aug 8, 2007
    Craig, I'm not arguing with you as you certainly have more knowledge about this subject than I do. I just think it is poor business practice on DTV's part to allow other retailers to sell these units and make a profit on them that could be going into DTV's pocket.

    If you have the only widget on the market, why wholesale it to competitors who will undercut your pricing?
     
  14. say-what

    say-what Active Member

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    Well, why does any manufacturer allow 3rd party sales? Under your scenario, it only makes sense for products to be sold directly to the consumer by the manufacturer. What DirecTV is doing is broadening the distribution chain. DirecTV isn't making money on the initial "sale" of the set top boxes, only offsetting some costs, they make their money on the various fees charged once an account is activated. It's in DirecTV's best interest to have these boxes readily available through as many sources as possible to get the receivers in the consumers' hands as quickly as possible.
     
  15. txtommy

    txtommy Icon

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    Dec 30, 2006
    BB or CC can sell you a unit for less since they do not install them. When you pay them $299 for the HR20, you have to take it home, take it out of the box, hook it up and activate it yourself. When you buy from D* they bring it to you, install whatever wiring or components are needed to get a signal, hook it up and activate it for you. I am sure that service is part of the cost that you pay.
    Having had a couple bad experiences with installation, I prefer to do it myself and do it properly to my satisfaction.
     
  16. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    I usually by a new razor every month or so...
    As it is cheaper to buy the razor, with two refils.... then it is to buy the refill pack for the razor.
     
  17. Sharkie_Fan

    Sharkie_Fan Hall Of Fame

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    If you pay $299 from a retailer, you have not bought anything. You've leased an HR20 just like the rest of us who ordered from D*.

    If you paid $800 from a retailer, then you own your HR20.

    D* has "the only widget on the market", and they allow you to lease it for an upfront fee of $299. Don't like that, go to a retailer and you can lease it for an up front fee of $299... or $269 if you go to Costco.

    The point being, for whatever the reasons, D* has decided that $299 is the amount they want to recoup when giving out an HR20, whether you lease from them or from a retailer. It doesn't cover all their costs, but, as has been pointed out several times, the equipment is not the big money maker for D* - the programming is... So, whatever amount they're losing by leasing for $299 (at this point, roughly $100), they know they're going to recover over the course of your contract....
     
  18. Earl Bonovich

    Earl Bonovich Lifetime Achiever

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    BestBuy and Circuit City are certainly different "retailers" then say... SolidSignal.

    BestBuy and Circuit City, want to have the DirecTV equipment on the shelf, so they get customers into the stores and see the other products that they sell.. (like the TV's, and the $100 cables to go along with that box, remotes, ect)

    So I think in the cases of BB and CC, the "cost" between DirecTV and CC is a wash... and probably isn't anything like we think.

    In cases like SolidSignal (and other eVendors)... the old model was they got a kickback from the activation (Simlar to how we customers can get $50 for a referal)... I am not sure what it is today, but wouldn't be surprised if the boxes are not "sold" in the same manner.

    They only have to pay for what they "sell", which woudl be at a fixed cost... and then they can manipulate the price they charge, based on how much the want to gain out of each sale.
     
  19. Tom Robertson

    Tom Robertson Lifetime Achiever DBSTalk Club

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    Leasing and selling thru various sales channels gives DIRECTV an economy of scale and points of presence that DIRECTV could not possibly afford on their own. DIRECTV can't make any money today if they ran as many brick and mortar stores as Bestbuy, CircuitCity, Costco, Walmart, etc.

    DIRECTVs goal is to get as many units out there as possible to support as many eyes watching DIRECTV supplied programming as possible without losing the farm along the way. :)

    Cheers,
    Tom
     
  20. Ken S

    Ken S RIP

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    That's cause you think like an engineer. :)

    They used to give the razors away.
    AOL gave their software away. (Now they've gone retarded and give everything away...but that's a long discussion)
    Cell phone providers give phones away.

    Cause their's nothing quite as nice as that regularly appearing payment.
     
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