Re: Just a question coming from Economist not an engineer - Saab Performance Bulletin Board - Saabnet.com
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Re: Just a question coming from Economist not an engineer
Posted by Drew in Houston [Email] (more from Drew in Houston) on Sun, 30 Jan 2005 13:31:00
In Reply to: Just a question coming from Economist not an engineer, elliott, Sun, 30 Jan 2005 08:27:49
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Thanks for your input!
The main thing I wanted to do was open-up an intelligent dialog concerning the subject--and it looks like that's happening.
I don't have the answers to your questions exactly concerning the other models but here is what I've been considering:
The reason to compare prices with lower volume models from other manufacturers is because those models have unique powertrains and unique engine management tuning. Like the Audi S4. That 2.7L twin turbo engine was used to a limited extent in other models, but not a whole bunch were produced total. It is a unique engine with unique management. The volume-sold of that specific engine (and engine management) divided by total number of tuning companies actively competing for sales yields a pretty low number, and still, Stage 1 tuning is around $600. Same with the M5, it's a low volume car and many engines have been used worldwide over the years. Those engines are each unique and require special and individual consideration when tuned. Not many M5's are sold total. Out of that total, how many have each engine? Out of the totals for each engine, divided by the number of companies offering tuning services, gives a pretty small number, and still, Stage 1 tuning can be had for a few hundred dollars cheaper than T7 stage 1 tuning.
So what is the difference? Why are prices higher than other global benchmarks?
And actually, a person can buy 2 new Saabs for the price of one of those cars mentioned above, so product price is not an issue. They are very low volume cars with unique powertrains and unique tuning requirements, and there are more companies competeting for that very small possible market--giving an even smaller possible market share per company. And still, it is less expensive to do a stage 1 ECU.
In addition to all of that, Saab's product cycle dictates that their engine and management controls packages are ran much longer and across more models/model years than other manufacturers--so initial development costs can be recovered over a longer period of time than the above examples.
posted by 67.10.24...
Posts in this Thread:
- Price Gouging, Drew in Houston, Sat, 29 Jan 2005 02:42:28
- Drew, i'm not sure if anyone made this compairsion, Tarheel, Mon, 31 Jan 2005 11:42:00
- I'm with you, galaynta
, Sun, 30 Jan 2005 05:46:00 - LOL, AdamB
, Sun, 30 Jan 2005 00:44:19 - You must be kidding., JEM, Sat, 29 Jan 2005 23:27:30
- I have stated some really headstrong boneheaded....., Chaz, Sat, 29 Jan 2005 18:07:06
- Re: Price Gouging, Cutic, Sat, 29 Jan 2005 17:58:48
- What a whiner!......., mcnasty, Sat, 29 Jan 2005 15:48:10
- For instance, is it also a coincidence that all of the, Drew in Houston, Sat, 29 Jan 2005 12:43:06
- Is it random coincidence that the companies who are, Drew in Houston, Sat, 29 Jan 2005 12:25:33
- Re: Price Gouging, Peter
, Sat, 29 Jan 2005 09:49:58
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