| it can take years. It all depends on the quantity of items sold per month and how much of the margin goes to paying down those costs. Keep in mind we're not talking iPod sales volumes with these manifolds either, so each manifold sold to a customer is critical from a financial perspective. I suspect that Mike was more or less forced to reduce his price in order to prevent erosion of his sales and maintain the ability of paying down the tooling/R&D costs. It's possible that he decided to extend the amortization period so he could lower his costs (not unlike when one refinances their home). Looking at it from another angle if AMS hadn't copied the manifolds and undercut Mike's pricing, it could have been possible for Mike to amortize his costs much sooner and move on to another new development project. This is the other half of the "copying parts stifles new part development" statement that doesn't get much attention in these discussions. Dave
This car is probably owned by a snowboarder. Sig Quotes: "I JUST saw your polls post" email from BigTDogg on March 24, 2009 in reference to this polls post from Jan 7, 2009. "Your sausage scares me!" - TT-XTZ 6/13/05 "Or he's having a rough week like the rest of us and decided to take out his agressions of not being breast fed on me." BigTDogg 15:45, 09/25/03 "Pick her up from day care and take her to Dairy Queen for a snow cone." YugoBernie 1/7/04 of course those are canadian bannings and beatings, which after the conversion rate is really only a "hey! stop that!" Chris(NJ) 1/14/04 see the green "n" next to my name? what's COZ? (n/m) - 300zx88 8/11/04 |
19:39:42 11/30/10
