View Single Post
Old 01-11-2016, 06:21 PM   #103
Teseo
Senior Member
 
Join Date: Jun 2014
Drives: frs
Location: Gunsai
Posts: 4,954
Thanks: 7,467
Thanked 2,980 Times in 1,802 Posts
Mentioned: 23 Post(s)
Tagged: 2 Thread(s)
Quote:
Originally Posted by venturaII View Post
If your pricing is lower because you're just trying to undercut the competition, then of course that's a poor business plan. But if, like Holley/Hooker (I assume...), you have access to material at lower cost because of volume, you have in-house capability for things like coatings/plating, and you have the equipment to create prototypes and bring them to production faster than small companies who have to outsource a significant portion of that work, not to mention they've been making exhaust products longer than the employees as most boutique shops have even been ALIVE, then the price will be lower because of efficiency, and that's a good business plan.
Thats is the theory and sounds like a dream, but the fact is the owners want/need more money for future R&D and business expansion.
Teseo is offline   Reply With Quote