If this costs $169 what is the other $4000 for

jsawyer

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I just bought a new pair of running shoes yesterday. I reard somewhere that it costs 3.00 to make a pair of shoes and nobody ever says s@it about paying 120.00 for the shoes. How bout that for markup:doggy:
 

Grabber07'

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What about the expensive dress shirts you wear? they cost less than a penney to make. most are made outside the US...You pay what for a nice dress shirt? now thats some markup hehe
 

cekim

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What about the expensive dress shirts you wear? they cost less than a penney to make. most are made outside the US...You pay what for a nice dress shirt? now thats some markup hehe
Software!!!!

There are software packages that cost $100K or more (even some that cost $millions).

Blank CD/DVD - $0.10
Plastic Wrapper - $0.01
Box - $1.99
Knowing where to hit it with a hammer and make it work - priceless...

I got your markup right here!
 

jsawyer

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Software!!!!

There are software packages that cost $100K or more (even some that cost $millions).

Blank CD/DVD - $0.10
Plastic Wrapper - $0.01
Box - $1.99
Knowing where to hit it with a hammer and make it work - priceless...

I got your markup right here!

Right where? I don't see my markup anywhere.........
 

terry5357

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geez guys I just asked a question, didn't know I was going to need a fire suit.........lol. I understand there is R & D but hasn't turbo tech been around for a while? Wait!!!!!!! let me get my fire suit.

Also read the "twat waffle" thread.......that is the best I have heard in a very long time. And no I am not a twat waffle and I am not a dick head even though I may have dick head tendencies............lol
 

Kevin@PMP

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Every time a new kit is developed it has to be R&D'd it's not just about selecting the correct turbo. Turbo spool time and HP can vary greatly with with very small changes in the piping.
 

cekim

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geez guys I just asked a question, didn't know I was going to need a fire suit.........lol. I understand there is R & D but hasn't turbo tech been around for a while? Wait!!!!!!! let me get my fire suit.
:flamethr::onfire:

That's ok, we know you aren't really a twat-waffle... As I mentioned, its a common misconception even amongst people who make their lively-hood off of R&D (the "hey, I can do that" attitude without understanding the opportunity cost of "you" doing it, not to mention that being "able" to do it and being the "best person" to do it are not the same thing... )

Sure turbos have been around, but not on this car...

Each setup requires both knowing what has worked in the past and knowing where to look for what might not work on the "new setup". Then when you try it out, figuring out how to fix whatever does not work...

Then there is the issue of what your custom-turbo-kit-building-welding-header-and-pipe-builder-guy is doing when he is not welding your kit? Would you like him to give up on making any money in the automotive industry and go use his skills to fix iron fences? Or would you rather he continue getting better at building turbo kits for your next car?
 
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Bingo

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What we need is for a Korean company to copy a Powerhouse turbo setup and sell it for half the price.
 

cekim

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What we need is for a Korean company to copy a Powerhouse turbo setup and sell it for half the price.
I thought GMS already had a turbo kit - aw crap, I didn't mean to say that out loud...

I doubt the scale of the market would allow for that - they make their money off massive volume to compensate for lower margin...
 

Bingo

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I thought GMS already had a turbo kit - aw crap, I didn't mean to say that out loud...

I doubt the scale of the market would allow for that - they make their money off massive volume to compensate for lower margin...

The GMS turbo = $$$$ :samuri:

I'm not so sure the market needs to be huge...don't you think the ability to make it without all the R&D work would significantly lower the price?
 

Josh@PMP

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What we need is for a Korean company to copy a Powerhouse turbo setup and sell it for half the price.

Yep that way you can get sub-par quality, bad fitment and end up paying a shop every penny you saved on the kit extra in labor :tdown:.
 

cekim

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I'm not so sure the market needs to be huge...don't you think the ability to make it without all the R&D work would significantly lower the price?
Auto parts require "tooling". Even if you don't do R&D you have NRE (Non-Recurring Engineering) costs.

With some notable exceptions, SE asian manufacturing always seeks extremely high volume markets. They don't want NRE or R&D expenses...

So, yes, the market would need to be huge...

And what Josh says is true - the quality would surely go down and you'd have to pay to "fix" it...
 
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