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I can't speak for other manufacturers, but to give you an example, we are launching our pro differential bushings right now. To recoup our R&D cost, we would need to sell 20-25 of the 50 sets we have in production. Currently we have sold only 3 sets. We will probably not see our costs recouped for another 3-6 months (big opportunity cost for us), and we had to take a risk and invest in the manufacturing that people would actually buy these bushings. In this case, R&D makes up a huge percentage of the price, I don't want to reveal exactly how much, but if not for R&D I would be able to sell the bushings easily for under $100. Manufacturing in China and Taiwan is certainly cheaper, but protection of intellectual property is a concern. At least right now someone cannot copy a product without having to buy a sample, measure, construct the jig and do a test fit. But I know of a few big manufacturers/tuners in Japan who had contracted out there to get products made, to find their products being offered to others with a small change in color. As consumers you have to weigh the price vs. the long-term value of supporting the original manufacturer, and some consumers would choose on price, that is OK. But I think people should be aware of what these products really are, and not commend or support them...
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13:31:27 10/19/04
