Seriously, $2400 for a cat back exhaust?
05-19-2010, 12:10 PM
#201
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I seriously hope you arent talking about me with that comment. I have 1.4 million in benders alone without tooling. Average tools set is $7-10k each. Some as high as $20k for stacker tooling. I have 247 tool sets. I also own all of our buildings. I can afford lower production rates because we do VOLUME.
05-19-2010, 12:21 PM
#202
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My Ride: 2008 550I LOADED, all options except HUD and NV
John, you are comparing local/domestic to international/import tho, there's shipping cost, custom fee....
It's like Armani to Polo, and if that's the case, I gladly pay that extra few hundred to get the import, isn't that's why people buying LV, Gucci instead coach?
Just my 2 cents
It's like Armani to Polo, and if that's the case, I gladly pay that extra few hundred to get the import, isn't that's why people buying LV, Gucci instead coach?
Just my 2 cents
05-19-2010, 12:33 PM
#203
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Not really, I look for bang for the buck. If you've got the cash to spend on a system that gives about the same performance or less then feel free, but I look for ways to get the max gain for the least amount of expense. Very few of the truly wealthy people I have been around piss away money when they don't have to, they leave that to the newly rich.
You mean like Athlete's, actors, tv presenters, hotel owners in Las Vegas, important figures in Mexico/Columbia, rappers, singers, owners of record labels, the biggest Internet providers, numerous vehicle dealerships?
05-19-2010, 12:37 PM
#204
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My Ride: A Car faster than yours.....
This is where this original post started, and where I had to question margins. I've been a part of some of the largest manufacturing companies in the USA, and I'v also seen the smaller mfrs hard at work to maximize their margins. I'm all for maximizing margins, but $2400 is excessive IMHO. Regardless, RPI may have somewhat of a monopoly on the 5 series market so they feel they can get away with asking for these retail prices. Hey, all the better. I was just questioning it from the get go.
Labor rates are maximum $30-50/hr, cost. Shops charge, $75+. OK, no problem. I have a hard time thinking that RPI actually dyno's every single one of their parts for retail. And although I agree, tooling costs are very expensive from the get go, after the first 100 or so units moved, costs should be covered. If they're not, I agree, mgmt needs to review COGS relative to net profit.
The question is, and this is of course an assumption, but could RPI sell more volume at a lower retail price that would make their business model more attractive? i.e., would it make their overall net profit increase vs charging a premium that may price them out of the market? I'm sure they've thought long and hard about this, and the truth may be that there is no volume in a 5 series exhaust product. ??
Labor rates are maximum $30-50/hr, cost. Shops charge, $75+. OK, no problem. I have a hard time thinking that RPI actually dyno's every single one of their parts for retail. And although I agree, tooling costs are very expensive from the get go, after the first 100 or so units moved, costs should be covered. If they're not, I agree, mgmt needs to review COGS relative to net profit.
The question is, and this is of course an assumption, but could RPI sell more volume at a lower retail price that would make their business model more attractive? i.e., would it make their overall net profit increase vs charging a premium that may price them out of the market? I'm sure they've thought long and hard about this, and the truth may be that there is no volume in a 5 series exhaust product. ??
I'm done with this thread.
I seriously hope you arent talking about me with that comment. I have 1.4 million in benders alone without tooling. Average tools set is $7-10k each. Some as high as $20k for stacker tooling. I have 247 tool sets. I also own all of our buildings. I can afford lower production rates because we do VOLUME.
05-19-2010, 12:48 PM
#206
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My Ride: 2008 550I LOADED, all options except HUD and NV
Taxes, real estate and labor costs (skilled) are higher here because the cost of living is higher here. RPI is in the heart of LA, which makes a BIG difference to being 30 miles out - Riverside, for example, is around half the cost of LA county for real estate and it's in the 30-50 mile range outside LA.
05-19-2010, 12:49 PM
#207
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taxes, forced premiums for insurance, then there is the wonderful fee that california charges every business for the "luxury" of doing business in california
gas prices, wages and the fact that the state is completely bankrupt only makes the economic situation that much worse
Business are taxed for almost everything
gas prices, wages and the fact that the state is completely bankrupt only makes the economic situation that much worse
Business are taxed for almost everything
05-19-2010, 12:58 PM
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05-19-2010, 01:00 PM
#210
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My Ride: 2008 550I LOADED, all options except HUD and NV
I wouldn't want to live in either one, Nevada is hot as hell and also broke (they are actually closing a lot of schools in LV now) and Washington? Too rainy, terrible weather, how do you even keep your car clean?