I asked a dew days ago and baikal said to me 4000 USD for x10, someone knows why they reduce the price??
Simple, cause they aren't selling fast enough. They lower price little by little to get the suckers that want to pay more first before getting the rest of the buyers. That's why they were selling at first for like $7000.
How they work:
Get suckers that wants to pay $7000, then when there's no more suckers, lower to $6000, and when no more suckers, lower again, rinse and repeat until stock is gone.
In other words, to maximize their profits since they aren't as big as Bitmain to be pumping out toasters non-stop.
So for more me, I woudn't pay anywhere close to $2000.
Remember, they were originally selling for $1188 so they had to make profits. Once they realized third party sellers were selling for a lot more, their price jumped.
Ok, I agree they were expensive and they were acting with some delay, but I think the whole firm is little bit slow (observation that I took when I ordered mine). But let's take a look from their perspective.
Imagine you are the owner of company Baikal and you are producing those ASICs for let's say 500$ (just suggestion, I have no idea for how much they produce them). Your margin in October - December has been 700$ roughly (for batch 1 that was 1188$) and 900$ (for batch 2 that was 1399$) or 58.33% and 64.28% respectively (gross margins, but I don't believe they have a lot of costs for advertisement and other things). In the beginning they were making 200$ days (so tempting) but we were aware how earns will drop rapidly. Still we had around 50-60$ earnings in the beginning of December which gives us Payback period of approx. 23 days.
Now - it comes December everything booms even more, XVG makes new all time high in the beginning of January and you are making almost 100$ per machine per day. The payback period is reduced to 14 days (for second batch) and 12 days (for first batch). Now you make a good research and you realize that people are willing to pay even for payback period of 180 days (especially the guys with GPU rigs). So you are saying to yourself: there are new people coming in the mining sphere, willing to wait for 6 months to get their money back and nowadays one of my machines makes 100$ day. You check on ebay and you see people are paying right now around 11,000 euros for one of your machines. As a produced you sold your batches on very low price. You don't want to lose money again. So you increase the prices to 7000$ (I don't know their way of price formation, but they did it somehow) and the payback period for their clients now is 70 days and even if mining profits drop to 50$ per day it still will be 140 days (lower than 180) and they still offer the best product. Your margins are going to approx. 92%. It is a win-win situation. So please don't blame them they are ripping people off. They are just trying to be flexible and to adapt to the new prices in the crypto world. You would have done the same. Again - I am saying they are little bit slow and maybe don't adapt very fast, but looks like they are trying. They were keeping for long time 7000$ for sure and the only thing I didn't like and I wouldn't have done if I was the owner of the company is the MoQ of 6.
That is all from me. Have a nice day and let's hope for a new big jump in crypto prices.
Disclosure: I am not owner (entirely or partially) of Baikal, nor their employee.
