True. But the inelasticity is key.
Now, I don’t know anything about dealer restrictions, but if I carried a new product that sold like crazy because it was cheaper, and I had low competition, and the stuff I used to sell was stupid expensive, I would put my all-in cost to the customer quite a bit lower, but pad my labor a bit so the customer still paid quite a bit less and I got paid a bit more as well. But that tactic would put the Mfg at less of an advantage.
Don’t know about Dynon but our avionics guy is straight up about Garmin. “Here’s my price from them, here’s what I think I should make to install it.” He’s not allowed to go below their pricing they set for the units. But it’s not the pricing you’ll find looking online anywhere.
To somewhat prove the manufacturers are in charge, two other shops we asked for quotes from declined to even quote when they heard we had a quote from him. They said their overhead at non-rural airports was higher so they couldn’t hit his bottom line price. Said if we were willing to fly there, there was no point in even quoting the job.
All we were really “negotiating” by shopping around was the labor costs. Garmin has the unit prices allowed, locked down, for the most part.
All of that would seem to indicate that flying an airplane somewhere rural with a lower cost of living is likely to garner the best overall price. The downside, if you need service on it, you’ll have to fly back there. Assuming the problem doesn’t ground the aircraft, of course.
If it’s grounded, call the higher labor price shop that’s local and get in line, probably behind their usual local customers who’d go first. For a pleasure aircraft, not a bad way to go. If you need to maintain a dispatch rate, stay local.
Long term relationships with businesses on the field or very nearby becomes critical then. “I really need this airplane flying tomorrow... can you help us out?” That begging works a lot better if you’ve put the mechanic’s kids through college. Hahahaha.