07-10-2013, 09:46 PM
here's my opinion.
i would say that the owner of drs is probly paying top dollar to have all the machining done outside. its not in-house work and the machinist wants his cut too, and it costs money for initial design costs. he HAS to jack the price up somewhat to still turn a profit. thats probly why its $800.
i'll give you an example for comparison.
when i worked for chrysler (making 4wd units) all the work was done in shop...and i mean everything. every part was cut, grinded, straightened, heat treated, assembled etc..all in-shop and with a hell of a lot more components and machining. all the workers made between 24-32/hour straight time. the company sold a completed transfer case for roughly 800 and still managed to turn a huge profit because they were able to put out VOLUME which quickly paid for the r&d and any costs for machinery. in the hayday they turned out 10k units per day..yes you heard me right 10k units/day for all of north america
this guy does not deal in volume, more than likely outsources the work, wants to be reimbursed for his time for development(providing that wasn't outsourced as well.) thats why it has to be $800. the business model is somewhat flawed so it can't be 500 or 600 or whatever. the guy is really just trying to provide a good product to a fairly small niche' of people. nothing wrong with that imo.
id say if you can afford it buy it..if not stop bitching about it.
hate me if you want but i tells it how it is.
i would say that the owner of drs is probly paying top dollar to have all the machining done outside. its not in-house work and the machinist wants his cut too, and it costs money for initial design costs. he HAS to jack the price up somewhat to still turn a profit. thats probly why its $800.
i'll give you an example for comparison.
when i worked for chrysler (making 4wd units) all the work was done in shop...and i mean everything. every part was cut, grinded, straightened, heat treated, assembled etc..all in-shop and with a hell of a lot more components and machining. all the workers made between 24-32/hour straight time. the company sold a completed transfer case for roughly 800 and still managed to turn a huge profit because they were able to put out VOLUME which quickly paid for the r&d and any costs for machinery. in the hayday they turned out 10k units per day..yes you heard me right 10k units/day for all of north america
this guy does not deal in volume, more than likely outsources the work, wants to be reimbursed for his time for development(providing that wasn't outsourced as well.) thats why it has to be $800. the business model is somewhat flawed so it can't be 500 or 600 or whatever. the guy is really just trying to provide a good product to a fairly small niche' of people. nothing wrong with that imo.
id say if you can afford it buy it..if not stop bitching about it.
hate me if you want but i tells it how it is.