Post by
youngturk »
https://forums.nicoclub.com/youngturk-u15876.html
Mon Aug 02, 2004 12:01 pm
Perhaps UM doesn't want to sell the brackets separately because then they won't be able to make any profit from selling Supra rotors and brake lines - people will be going out and purchasing the rotors and brake lines themselves for less, sending those profits to other companies.
My guess is that the $250-$300 estimated price for the brackets includes the profit they are making from selling the rotors and brake lines (which they would have to forgo if they sell the brackets only).
I can't blame them for doing what they are. In the absence of any competition, they have the greatest selling power.
However, as soon as someone (doesn't have to be a company) decides to enter the market and manufacture and sell the same bracket for less, UM's prices will drop a little or a lot (depending on the competition's pricing). And there would be very little that UM could do about it. As Nismo_Freak said: "...it's just part of the business and you gotta do whatever you can to prevent it but once it happens you just gotta make a better selling point. Just part of the game."
A patent costs minimum a few thousand dollars and takes at least two years to obtain. Moreover, this is the type of part that would be easy to "design around", as they say in the patent world. So, a patent is useless unless you got the lawyers and money to intimidate imitators. I'm guessing UM doesn't have that or wouldn't want to spend that over such a product.
I say to UM: Before someone discovers the market potential and takes away your commanding position, pre-empt any potential imitators by selling the brackets separately for a low enough price (with reasonable profit) so that no one else will be interested or able to justify manufacturing it and selling it for a profit. If the profits aren't high enough, no competitor will bother investing in designing, manufacturing, and marketing the product. Otherwise, you're just tempting/encouraging potential competitors to imitate your product. You can decide right now whether you want to be at the mercy of a potential competitor/imitator (and limit your long term profits) or whether you want to own the market with little to no risk of anyone challenging you. Choose a lower (decent) profit, and a higher sales volume will make you more money in the long run. Not to mention the potential to gain customers you didn't have before who may purchase other products from you.