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Just a question coming from Economist not an engineer
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Posted by elliott (more from elliott) on Sun, 30 Jan 2005 08:27:49 Share Post by Email
In Reply to: Re: Price Gouging, Drew in Houston, Sat, 29 Jan 2005 19:37:32
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(darn members thing... typed out, submit, and lost it... here's take 2) -

Now this is no attack at either side. Drew, I know you are an engineer (no offence at all, I am simply a business/econ guy), so I have a few questions that might answer your questions...

It most likely has something (actually everything) to do with supply and demand which dictates prices. This is no matter what acts on the price, price gouging included; one side moves in relation to the other.

Now the cars you bring up as "low-production" - S4, M3/M5, etc. - two things. One, they are "performance" cars, and therefore the owner would be more likely to purchase a "tuned" upgrade, yes? So the market is there from that aspect.

The other is, are they not the same underpinnings (engine management?) as their "base" model. So an S4 is an A4; an M3/M5 is a 3-/5-series? If so, then the potential "tuner/performance" customer base would be drastically increased. I may be wrong, as I can only speak of Saab, so I may be naive. As the Viggen/Aero is still using T7 engine management (like other 9-3s/9-5s) despite being the "performance" version. Therefore, the (potential customer) numbers are not the same for Saab.

Is $1K too much for the "tuning" necessary? Possibly. Is there price gouging going on? I can not say yes or no. No matter what, there is always a psychological price with anything at which a company can and will sell a product. The latest technology PC will always be $2K+, the iPod and similar MP3 players will be $299 and $399, etc. So after whatever R&D necessary, Abbott (and I think Hirsch) decided on a price at or near $1K (Hirsch, still if not more expensive). Therefore, introduction of "latest" products will most likely continue to be at this level because it is a proven price point to enter into the market. Over time, the price will come down, as the T5 system is currently between $500-600. But for now, that (T7 and now T8 price) is where it lies.

As for the shipping (well, value of the dollar, etc.) price, nothing can do here, unless one were to receive the "rights" and ability (software, etc.) to tune locally. Perhaps Nick's prices will eventually come down when done in-house. But initially there is the out-of-pocket cost for him to travel, learn, and purchase the "tools" necessary to offer it "locally."

And service, etc. questions? I have never communicated about "upgrades" for other cars, so I am not sure the service or time would be any better. And considering the HP/per $ of modifying the software, it really doesn't seem that outrageous. Would I want it done for less, absolutely. Is it reasonable? Maybe not. And brief requests to JAK have been favourable as to his willingness to help.

The cost for me to find a workaround of the Clarion C-bus protocol to add Aux-in was quite high, and I never even got the chance to reverse engineer it. And moreso, I have received only 2 inquiries/questions regarding what I did. Not profitable at all considering the time spent and 0 requests to make one for someone else. So my cost was high to add something I read about and seems simple enough to do, but never seen anyone do it. And I offer that on my site for others to try. Do I feel "tuning" companies should do the same? Probably not, as the upfront costs for them are exponentially higher than for my "creation." And I think we would almost start in on the debate between "for-profit" vs. "non-profit" or "open-source."

I'll stop my rambling. Just adding my pennies...

Sean
1997 NG900SET
140K
lucky, I guess to get "cheap" price T5 SQR, most likely in the Spring :o)

P.S. Still have that ASUS MB lying around?! :o)


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