Post by
Kaleo55 »
https://forums.nicoclub.com/kaleo55-u36560.html
Mon Jul 03, 2006 6:04 am
Sorry to jump in so late, but I've given this issues a bit of thought and I believe it is helpful and informative to have knowledge of how things really work in our capitalist system. I thank Moyea for his insight and I hope we take the time to understand what he is saying.
I have had enough experiences in my lifetime to understand that old axiom "You get what you pay for" all too well. And often times this is more true than we'd like to admit. But in an effort to satisfy certain urges, we make purchases based on our pocket book bare rather than with our brain and consequently end up with a S**ty piece of whatever it is we thought we were buying and saving on.
However with all that said, beyond the economic dynamics that drive price and cost that Moyea so well illustrated, there are other dynamics at work as well, such as marketing/advertising strategies that drive prices and have very little to do with actual cost. As a advertising marketing professional I know well how companies protect brand development and pour millions of dollars into advertising and marketing initiatives designed to get you to buy their brand, regardless of cost. Even if you don't purchase their product now, you are more likely to buy at a later date if you have heard about it, seen it or someone said they liked it. Marketers pay a lot of money to develop their brand.
Many years ago, products coming out of Japan were considered inferior in quality and crap. Essentially the Japanese industrial complex became so good at reverse engineering, they produced every kind of product on a huge scale and exported to a hungry US market. All they needed was a little marketing savvy and good advertising to reverse the common perception and of course good products. The Japanese were very good at reverse engineering and eventually began improving the products they copied. Essentially they got a leg up because they didn't have to start ground zero. However they with their success in reverse engineering they also became very good innovators making great improvements to basically everything they made. You all heard of Sony, Panasonic, Mitsubishi...Toyota.
Mitsubishi is gigantic, they produce everything from huge oil freighters to circut boards for DVD players, but they've paid a price for their brand awareness. Now you pay the price to enjoy their brand. In reality their products are not necessarily the best or better than others. But you now know the brand name and have a perception of quality products. That is the key word "perception" and that is the dynamics at work as well.
While it is true that it takes time to develop perception, and equally important, "quality". After years of testing and developing a brands reputation, by winning races or beating records you eventually get to the top.
But there always comes a point when someone else starts knocking at the door and tells you they want to run with best and to prove it to you, they'll sell their products to you at a steeply discounted rate to get you to try. In this case, it's China. Soon the the best products will be coming out of China and they are already making their presence felt. For now it less a matter of quality, but demand. For one Japanese craftsman building one exhaust system, there's five Chinese building twenty. Their quality will improve as demand rises. You may not know it, but you can be sure Japanese companies are looking hard at their chinese manufacturing options.
Personally, I feel that much of the stuff coming out of Japan is overly priced and wildly inflated in value. The exhaust systems now coming out of China that are being SUCCESSFULLY marketed by companies like SSAutochrome are an indication of things to come. The prices they sell at now on Ebay dramatically demonstrates the disparity in actual cost to manufacture the product versus the name brand product. So yes, you can go with the company that originally designed the product and pay brand name prices or buy basically the same product cheaper made by the no name company. That's the beauty of it, you have a choice. So while I love my APEXI N1 Duals, which by the way fit my car perfectly as oem, I also know I might have paid too much for them. But then again when I bought mine, the copies weren't available yet. But I very well might have considered cost as a big factor in my decision making process.
Back in 1965 you could have bought a brand new Datsun 510 for well under $5k and be driving or only dreamed about buying a $9 or $10k Camaro. Same thing is going on right now, can you read the writing on the wall? You can be smart, have the performance you demand and save, or you can have the best brand name that you saved up for a year to get.
Come on!, we love our 240's because they are a fantastic sports car that is AFFORDABLE and nearly completely customizable. Imagine if you spent half of what you would spend on a Porsche 911 Turbo (approx. $122K full price) on performance mods for your 240? I think you could beat 480 HP and have the baddest 240 in your town. Haha, of course if you had that kind of money you'd probably have a Porsche. My point is, with forums like this you can make better informed decisions about parts and products that offer significant price savings. SO stop dissing companies like SSAutochrome that supply the products we demand at price we can actually afford.
Be wise and boost it!