So if they're giving the parts away at cost, how do you propose they make their money? I say more power to them, and next time you see some little board dork in a Fox/Shift/FMF/Whatever shirt, ask him/her what it stands for. If they don't know, kindly educate them. It can only be better for our sport in the long run.Originally posted by Sage
. . . It's bad enough that the profit in the motorcycle industry has gone down to the point where you're almost giving the parts away at cost . . .
Originally posted by Jeff Gilbert
it was a must to wear spandex and leg warmers
You must know very little about business. A good gross profit margin for any company on a product is around 15-18% EBIT (Earnings Before Interest and Taxes). On that $9.00 gaset, the company you puchased it from made a net profit of probably no more than $.35-.40. You have to sell a hell of a lot of product to make any money like that.Originally posted by kingriz1
If 9 dollars is anywhere close to their cost, we are all in the wrong business![/B]
Originally posted by mx547
you're admitting this?
Originally posted by spanky250
You must know very little about business. A good gross profit margin for any company on a product is around 15-18% EBIT (Earnings Before Interest and Taxes). On that $9.00 gaset, the company you puchased it from made a net profit of probably no more than $.35-.40. You have to sell a hell of a lot of product to make any money like that.
And what part of my statement do you not agree with?Originally posted by Jeff Gilbert
Order a OEM top end gasket kit from KTM and then tell me you still agree with your statement.
If you factor in all the costs of making that pipe, I'm sure it is more than $14. You can't just include the sheet metal and the labor of the people that cut it, stamped it, and welded it. You have packaging, employee benefits, building maintenance and operating costs, utilities, insurance, advertising, product development, taxes, both direct and indirect labor, etc. etc...the list goes on and on. I stand by my statement that a successful company operates at 15-18% EBIT. If they are eaning 20% EBIT or better, they are turning in world-class record-beating profits.Originally posted by marcusgunby
A exhaust costs about £9 to make($14) so maybe the dealer dont make a huge profit but FMF wont be going out of business soon.
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