Crawford Billet Power Blocks

[Hawaiian]

Originally Posted by OrbitalEllipses

20%? Imagine the margins Crawford must be making on these...

I'm guessing about $50 material cost in for the raw blocks pre CnC. Add in a few bolts and you're up to $60 per kit.

...not bad.

[IAmNotTheDriftKing]

Originally Posted by Hawaiian

I'm guessing about $50 material cost in for the raw blocks pre CnC. Add in a few bolts and you're up to $60 per kit.

...not bad.

Well to be fair, a CnC machine isn't exactly cheap, although they probably have had their machines for quite some time to more than make their money back.

[Kodename47]

Originally Posted by IAmNotTheDriftKing

Well to be fair, a CnC machine isn't exactly cheap, although they probably have had their machines for quite some time to more than make their money back.

Surely they just sub it out to a CNC company rather than make in house?

[Bach415]

@nelsmar IT'S FRIDAY! Have you received it yet? or is it not arriving til next Friday? haha

[King Tut]

Originally Posted by IAmNotTheDriftKing

Well to be fair, a CnC machine isn't exactly cheap, although they probably have had their machines for quite some time to more than make their money back.

Well to be fair, there are 23 pieces.

[Superhatch]

^ heh.

Really wanting some 3rd party results on these. Can't wait to see it regardless of outcome.

[86-tundra]

Originally Posted by Hawaiian

I'm guessing about $50 material cost in for the raw blocks pre CnC. Add in a few bolts and you're up to $60 per kit.

...not bad.

It doesn't cost much to make medicine, but it costs ridiculous amounts in US

gotta pay for research too

[Luckrider]

Originally Posted by trevorovert

It doesn't cost much to make medicine, but it costs ridiculous amounts in US

gotta pay for research too

Development cost of maybe $2500 for a part like this (they have their own dyno so dyno time is cheap and it was suggested earlier the easiest way for them to make this was to test till the find a suitable size). With actual production costs of less than $150, they are making some serious money.

[IAmNotTheDriftKing]

Originally Posted by Kodename47

Surely they just sub it out to a CNC company rather than make in house?

Maybe, I am not really sure how Crawford operates, I don't see why they wouldn't.

[Luckrider]

Originally Posted by IAmNotTheDriftKing

Maybe, I am not really sure how Crawford operates, I don't see why they wouldn't.

Sub contracting something like this is almost always cheaper. I was around for the start of Savvy Off Road and spoke often with the two founders about design and production.

[Hawaiian]

Originally Posted by Luckrider

Development cost of maybe $2500 for a part like this (they have their own dyno so dyno time is cheap and it was suggested earlier the easiest way for them to make this was to test till the find a suitable size). With actual production costs of less than $150, they are making some serious money.

I'm guessing material parts are about half that. If the groupbuy hits 100, it's enough profit for a new frs. Like I said, not bad.

[Luckrider]

Originally Posted by Hawaiian

I'm guessing material parts are about half that. If the groupbuy hits 100, it's enough profit for a new frs. Like I said, not bad.

100 Group buy sales should be enough for a new BRZ with a turbo kit. Not quite enough for a full build, but still lots of profit.

[mav1178]

From a purely material cost perspective, something like this would cost less than $100 to actually make.

From an accounting perspective, once you factor in marketing, sales, packaging, capital costs, and whatnot... gross margin would be in the neighborhood of 30-50% and net margin would be 10-20%.

About right for a properly run business, assuming Crawford is properly run...

-alex

[Luckrider]

Originally Posted by mav1178

From a purely material cost perspective, something like this would cost less than $100 to actually make.

From an accounting perspective, once you factor in marketing, sales, packaging, capital costs, and whatnot... gross margin would be in the neighborhood of 30-50% and net margin would be 10-20%.

About right for a properly run business, assuming Crawford is properly run...

-alex

Have you ever worked the numbers side of a product. I can tell you that your numbers are way off. The margin is much greater than that for any successfully run business. Even Wal-Mart which claims low margin is higher margin than that and they are high volume which can sustain lower margins.