This is the last time I'll post on this forum because it has gone off subject. I think the point that was made is the fact that koukimon took a chance with SSAC and was pleased with the result. The point I was making was that people can spend their money how they want. I was just including some information for those who are unsure about these products. Making an informed decision about modifications is your best weapon. Your budget, how you intend to use the product, product reviews, etc. should all be consider when buying parts. Also knowing what's involved in installing it will help too. As far as my comments about Apexi products, which is actually about all companies from Atari to Shell Gas, is a lesson in economics. Because of my background in marketing and sales I am experienced with the big picture of how much things really cost. If you like your Apexi, rock on!
But those of you who think Apexi can justify their price with R&D cost.... your dead wrong. A little right but mostly wrong.
(This where I clarify R&D cost vs. Profit)
First, R&D is not calculated into the list price or the profit margin. This is what they call an absorbed cost, also know as a form of capital. What this means is they have already paid for the R&D and it has nothing to do with the current product's price. The most influential cost to the profit margin is manufacture cost. There is other factors but maybe I'll post that somewhere else. So to throw out some example figures:
My company paid a one time cost of $2000 for R&D of my exhaust. And yes, there is considerable science in exhausts. Then I take the designs to a manufacturer. Lets say ummmmm China (Look at those $100 Nike's) They produce it at $100 a unit. Then I sale them at $500. This means after 5 sold units I have already got a return on my R&D cost. After that its all profit.
This is where your right:
Now after you factor in your sales and other variables you get a gross profit. This is where R&D is removed from the total gross profit. Here comes more simplified figures:
So I sold $10,000 worth of exhausts. Then I take 50% of that for R&D. By the way, no company that wants to stay in business will spend more then 50% on R&D. Note that most companies will not spend more than 25%. This means that you have $5000 take home money.
Here is where your wrong:
The $500 you paid for your Apexi doesn't go towards the R&D of your exhaust. You just paid for R&D of another exhaust that you may or may not see. Put into simple terms: You are sponsoring Apexi! Figures: You paid $500 for the exhaust. $100 goes to the development of a better exhaust. Now your exhaust is second rate and somebody else has a better one because you help fund it. This also applies to revisions. That $100 went to fixing something defective or improving something in your current product. Can you return your old product to get a revised one? Nope.Dont get confused here, Apexi did not make the price $500 because of R&D. Profit comes first then comes the question of if they want to use it for R&D.
For more info about investments/profit/etc. check out
http://beginnersinvest.about.com/
How the world is screwing all of us:
Its a cycle that all business go through. Bottom line is companies use profit mark ups to line their own pockets. This is why I prefer to buy "American Made" or from a small family business (like BRM). Ask AZHitman about his business model then ask Apexi about theirs. You'll see that not only does Apexi sell more but they charge more, pay less, and make more profit. A lot of this is due to the "brand" name. This is the rip off. Example, how many of you buy Speedo goggles despite the fact that they are uncomfortable and often leak? Why do you keep buying them? They cost $3(made in China) to make and you pay $19, this I know for a fact, so you figure its a way of life, right. Nope. There are better goggles out there, made with better quality, but people hear Speedo and think quality. Its simply not true.
Moral issue: Why you should/shouldn't you feel sorry for the "Man"
As stated above most companies are charging more than an item is actually worth. Don't feel bad if you are frugal with your purchases or buy/pirate a product. In most cases this helps the economy thru competition also known as capitalism. Example (another one): Movie studios always discourage pirating by claiming that you are taking food from the mouths of the "small guy", such as the set builder or gaffer. This is total . The set builders, actors, extras, etc. have already been paid. It doesn't matter if the movie was bootlegged in Germany because Tom Cruise already got paid for MI:3. So did the gaffer. The studio is trying to maximize profit on the movie but cant when people download it and don't watch it in theaters or DVD. So instead of a profit of 60 mil., they made only 55 mil. Boo Hoo . Studios rush movies to release on DVD and reduce prices to combat this. This is good for us, Capitalism. But how would you like it if someone came by and took 7% of every dollar you made (wait they already do... its called taxes). You get my drift right? Stealing is wrong ummkay. But wait, it works both ways because these companies are stealing from you! Charging $500 for $150 exhaust? Then people try to justify the cost with R&D? Not good enough! Reliability, performance, etc. these are justifiable. And Apexi has these qualities!
Here is a great example of what I'm talking about>
http://www.walmartmovie.com/
The Wrap up: Spend you money Your way!
Apexi is established for good reason. Quality products from a quality company. $500 may be too much for some. SSAC has made many people happy with their exhaust at a lower cost. Might be to good to be true for others.
What about me? aka Who cares what I say!?
I already said I used these ebay companies before with mixed results. I actually like to support small shops like BRM or your local speed shop because these shops can make a comparable or better exhausts at a mid-range price. I'm also tight with my money and almost never pay full price for anything. And yes most race drivers/teams have themselves custom parts to meet specific needs. Like an exhaust! Research and make up your own mind.
That's it I'm done. This thread has gotten off subject. I'm sorry for jacking your thread koukimon. Thanks for making this post so people can make an informed decision. Any stabs at me should be done elsewhere.