Seriously, $2400 for a cat back exhaust?
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From: West LA
My Ride: 2005 BMW 545i
We own BMWs, so things are naturally more expensive. Also, you can either go with an RPI exhaust with a lot of R&D put in specifically for each application, or you can make a general custom exhaust system fabricated at an exhaust shop using general piping and mufflers. It works, will it be as good as the real deal (RPI), no. Like my Nex coilovers, they are mass produced in Asia and they just modify the shock bodies to fit for different applications. However if you go up to JIC/Cross level, they are generally engineered for each specific application and thus cost 4x times as much. Likewise here, the RPI system would cost about 4x as much as a general non application specific system.
And if you ask me what's a ripoff its on all of those little parts like replacement emblems and the like. Those have to cost like $1 to make and cost $20-$40 on the retail market. If you talk about markup, we are all losing there...
And if you ask me what's a ripoff its on all of those little parts like replacement emblems and the like. Those have to cost like $1 to make and cost $20-$40 on the retail market. If you talk about markup, we are all losing there...
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My Ride: A Car faster than yours.....
I'd buy their muffler for my 530i if it was $400. I wouldn't pay a penny more. Not in this economy. Plus they won't budge on price. Its like $799 retail and the lowest I've ever been able to get it down to was like $610. Don't give me that R&D stuff, either. R&D pays for itself with sales up the wazoo if you're priced right. I know and you know that the cost for parts/labor on manufacturing a muffler is nothing near $799, not even close. So why am I paying massive mark-up?
Our welders make decent money. They have been with the company for over 15 years and we want to keep them. With that, these are not Home Depot Day workers I have here. Our margins for the 530, 545, 550, 535 is very minimal. These are mostly products that we have made as an answer to the demands of fellow e60 members....."why do you guys only make stuff for the M cars?" I appologize if the pricing is not to your liking. If we dont maintain some sort of profit, there would be no RPi at all. We are not like other companies where they import stuff then do a 10x mark up. Some people pay $3k for a muffler..........and they LOSE power! lol.
Exactly, so how do you think RPI stays open?
The 525/530 exhausts arent their money makers, but rather the effect of trickle down production and technology, essentially they are m5 single sided mufflers.
The full exhausts are the money makers, hence the $2500 price tag, but even then do the math and RPI isn't walking away with giant tan bags with green dollar signs on them.
They have to produce different exhausts for different cars and they have to PROVE each one of their claims, which they do.
The only product that I can see bringing in larger % of profit are the scoops. Its pretty much a one design fits all with a few small variations.
The 525/530 exhausts arent their money makers, but rather the effect of trickle down production and technology, essentially they are m5 single sided mufflers.
The full exhausts are the money makers, hence the $2500 price tag, but even then do the math and RPI isn't walking away with giant tan bags with green dollar signs on them.
They have to produce different exhausts for different cars and they have to PROVE each one of their claims, which they do.
The only product that I can see bringing in larger % of profit are the scoops. Its pretty much a one design fits all with a few small variations.
Thanks for the replies. Read em all and there are valid points. Appreciate the feedback.
So, I suppose economies of scale don't apply to RPI because volume isn't there?
My guesstimate is that break even on RPI's R&D likely came after they sold the first 20-30 of these, max.
If you found out the hard costs on the RPI system were $500-700, would you still feel the same way? Anyone worth their salt knows that raw materials on this setup don't warrant this price tag. However, RPI has a right to charge whatever the F$%# they want....er, whatever the consumer will pay.
Just for clarification, I'm not cheap.
And I'm the biggest advocate of capitalism you'll find (I'm a business owner myself). Yet, my question stems from the sticker shock I experienced when I saw the price. Opportunity cost would likely push me to another performance part before sending a check to RPI....at this point.
So, I suppose economies of scale don't apply to RPI because volume isn't there?
My guesstimate is that break even on RPI's R&D likely came after they sold the first 20-30 of these, max.
If you found out the hard costs on the RPI system were $500-700, would you still feel the same way? Anyone worth their salt knows that raw materials on this setup don't warrant this price tag. However, RPI has a right to charge whatever the F$%# they want....er, whatever the consumer will pay.
Just for clarification, I'm not cheap.
And I'm the biggest advocate of capitalism you'll find (I'm a business owner myself). Yet, my question stems from the sticker shock I experienced when I saw the price. Opportunity cost would likely push me to another performance part before sending a check to RPI....at this point.The only discounts that we offer year round are to LE, active Military and Military retired. Some people think its unfair but IMO, if you put your life on the line and serve our country and ALL the many ungreatful people in it, I WANT to give you a discount. I'd give it to you for free if I didnt have my own costs involved.
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