The expenses of a builder of aeroplanes are extremely heavy. His business is not at all like any ordinary commercial undertaking. He does not merely build a machine, and then sell it. He has costly researches to undertake, and wearisome and expensive experimental work to carry out.
Let us take a typical example. A prominent manufacturer in France designed a monoplane, which embodied improvements upon existing practice. Having the facilities of a well-equipped workshop, he speedily put his ideas to a practical test, and commenced the building of a machine.
This occupied some weeks, during which time, of course, the builder had the wages of his engineers to pay. Then, when the machine was ready for tests, he had to hand it over to his professional aviator—another well-paid employee. The monoplane was taken to the private flying ground which the manufacturer found it necessary to rent; and here, for a week or so, first experiments were carried out, the wages of the aviator being augmented by those of a regular staff of mechanics.
The result of the trials was that, after securing useful data, the monoplane was irretrievably wrecked, in landing after a flight. Whereupon, the manufacturer had to face the expense of building a second machine, embodying further improvements suggested—and going through the whole routine again.
This he did, devoting several weeks of his men’s time to constructing the new machine. Once more, when it was finished, the professional aviator took it in hand. This time, after an even shorter career than the first machine, the monoplane was broken up. Again, however, improvements suggested themselves; and so the maker embarked, patiently, upon the construction of a third model.
To cut a long story short, this process of evolution went on until six monoplanes had been built, each one more reliable in action than its predecessor. It was only, in fact, when a seventh machine stood ready, that the manufacturer considered he had a flying machine he could offer to prospective purchasers, as a safe and improved type.
In fixing the price that he should ask for this new model, the manufacturer was guided, naturally, by the outlay that had been necessary in perfecting it. It would have been unreasonable, under such circumstances, for the purchaser to expect to buy the machine at a figure which represented a small profit for its builder, over and above the actual cost of production of that one model. Having spent thousands of pounds upon his experiments, the manufacturer was obliged to recoup himself, by charging a high price for his goods.
Another factor would also govern price in such circumstances as these. The manufacturer would have no guarantee as to selling any fixed number of machines. In the case of a new motor-car, for instance, the machine is standardised; and, if it is a good one, a large number are sold. This, naturally, reduces the price per machine.
But, in the case of this new monoplane, even if it is the best produced at the moment, the question of the number to be sold is an unsatisfactorily vague quantity. After only two or three have been disposed of, for instance, another machine may be put upon the market which is a few miles an hour faster; whereupon, the aviators who are intent upon winning speed prizes quickly devote their attention to the new machine.
As may be imagined, therefore, what with enormously-heavy first costs, and a doubtful sale even when a good machine is produced, the manufacturer of aeroplanes has no alternative but to charge a high price for the machines he does succeed in disposing of.