major torque arm problem...
I have to correct you on this. All of Founders Performance parts are made in San Luis Obispo CA NOT China. We do have other companies do some laser cutting for us in the USA but that's about it. We are very efficient at what we do by building mass volume with a lot of automated equipment. The steel plate and tubing we use is also made in the USA.
I have to correct you on this. All of Founders Performance parts are made in San Luis Obispo CA NOT China. We do have other companies do some laser cutting for us in the USA but that's about it. We are very efficient at what we do by building mass volume with a lot of automated equipment. The steel plate and tubing we use is also made in the USA.
As someone who works in quality, there is more that goes into pricing than just the cost of materials, and the labor, equipment, energy required to manufacture a part.
The cost also incorporates advertising, sales reps, marketing, promotional items etc etc etc.
Open up a magazine, and look at who has ads in the magazines, those aren't cheap. Look at who's at the big shows with big tents and trailers, those aren't cheap either. Then there is support staff, that adds to the cost of selling products as well. The cost needs to incorporate the salary for the person who answers phones and takes orders, and then there is the person that puts your order together and does the shipping. Now, add in technical staff as well as people who do R&D.
In smaller companies, one person could wear many hats. He could be the guy who answers the phone, takes your order, builds your part, then ships it to you and answers your technical questions, but at a certain point, demand grows, and they hire people so he can focus on doing more of one thing than all those other things.
Even look at this site, it costs money to advertise and be on here. So when it comes to pricing, you can't just look at it and say it has $25 in materials, and $35 in labor, and $10 for cost of the time on the machinery so it should cost $70 plus profit.
The cost also incorporates advertising, sales reps, marketing, promotional items etc etc etc.
Open up a magazine, and look at who has ads in the magazines, those aren't cheap. Look at who's at the big shows with big tents and trailers, those aren't cheap either. Then there is support staff, that adds to the cost of selling products as well. The cost needs to incorporate the salary for the person who answers phones and takes orders, and then there is the person that puts your order together and does the shipping. Now, add in technical staff as well as people who do R&D.
In smaller companies, one person could wear many hats. He could be the guy who answers the phone, takes your order, builds your part, then ships it to you and answers your technical questions, but at a certain point, demand grows, and they hire people so he can focus on doing more of one thing than all those other things.
Even look at this site, it costs money to advertise and be on here. So when it comes to pricing, you can't just look at it and say it has $25 in materials, and $35 in labor, and $10 for cost of the time on the machinery so it should cost $70 plus profit.
As someone who works in quality, there is more that goes into pricing than just the cost of materials, and the labor, equipment, energy required to manufacture a part.
The cost also incorporates advertising, sales reps, marketing, promotional items etc etc etc.
Open up a magazine, and look at who has ads in the magazines, those aren't cheap. Look at who's at the big shows with big tents and trailers, those aren't cheap either. Then there is support staff, that adds to the cost of selling products as well. The cost needs to incorporate the salary for the person who answers phones and takes orders, and then there is the person that puts your order together and does the shipping. Now, add in technical staff as well as people who do R&D.
In smaller companies, one person could wear many hats. He could be the guy who answers the phone, takes your order, builds your part, then ships it to you and answers your technical questions, but at a certain point, demand grows, and they hire people so he can focus on doing more of one thing than all those other things.
Even look at this site, it costs money to advertise and be on here. So when it comes to pricing, you can't just look at it and say it has $25 in materials, and $35 in labor, and $10 for cost of the time on the machinery so it should cost $70 plus profit.
The cost also incorporates advertising, sales reps, marketing, promotional items etc etc etc.
Open up a magazine, and look at who has ads in the magazines, those aren't cheap. Look at who's at the big shows with big tents and trailers, those aren't cheap either. Then there is support staff, that adds to the cost of selling products as well. The cost needs to incorporate the salary for the person who answers phones and takes orders, and then there is the person that puts your order together and does the shipping. Now, add in technical staff as well as people who do R&D.
In smaller companies, one person could wear many hats. He could be the guy who answers the phone, takes your order, builds your part, then ships it to you and answers your technical questions, but at a certain point, demand grows, and they hire people so he can focus on doing more of one thing than all those other things.
Even look at this site, it costs money to advertise and be on here. So when it comes to pricing, you can't just look at it and say it has $25 in materials, and $35 in labor, and $10 for cost of the time on the machinery so it should cost $70 plus profit.
__________________
Glenn ***
Sales Tech
www.bmrsuspension.com
813.986.9302
Find a Quality alignment shop near you!
Glenn ***
Sales Tech
www.bmrsuspension.com
813.986.9302
Find a Quality alignment shop near you!
To be clear though, just because something is more expensive, doesn't mean it's of higher quality, it might just mean that the company has more overhead than the other company.
