Jayoldschool Member 6 Member For: 10y 7m 1d Gender: Male Location: Penrith NSW Posted 24/06/14 10:21 PM Share Posted 24/06/14 10:21 PM Best of luck with it mate. There's no doubt a healthy margin in these products, but that's why people take the risk in setting up a business is to get a healthy return. You don't put your balls on the line to just break even. Also factor in the cost of developing new products or adapting products to suit new models, both PW & Plazma have had to do this at considerable expense which then has to be recovered from future sales. For someone to come along after the hard work has been done and sell something cheaper using their intellectual property or ideas is a bit sad. As for the whole argument that J@ raised about being able to make something at home for $50, consider buying a steak meal at the local pub. Cost of food on that plate would be about $7 and you're paying $30+ for it. Is that wrong and unreasonable? Staff costs and overheads of a real physical full time business will typically add 60% to the cost of goods before it can be sold at a break-even point. Don't take this as having a chop - just some honest advice. Many have had the same gripe in the past, nobody has succeeded in making it work. If you want a classic case study then read the thread title for a hint on somebody that has tried (and failed spectacularly) at delivering something good, cheap & quick. And also find a decent courier company. Whoever this bloke uses are absolutely fcking useless, I'm starting to think they are actually opening packages now and swapping parts out just for shts and giggles. Spot on, people never take into account labour time, cost of equipment to be able to even bend the pipes, the hours involved to swap tooling over on a bender to bend a batch of stuff, the powder coating costs + getting it there and back again, the business costs, insurances, wages, electricity and so on and so on and so on. Take a Air muffler delete for instance, I can make a part at my house for $50 in bits too, but someone else has invested a sh*teload in the equipment to make the bits I'm about to use. Then if it takes me a couple of hrs to do, I've just blown out the cost to beyond the $180 I could have purchased a delete pipe for. Costs are always higher than the value of a couple of bits. Regards, Jay. Link to comment Share on other sites More sharing options...
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