Well considering you’ll do a custom Ti frame for similar to an off the peg, either volume manufacturing is a bit of a myth or you are seriously underselling yourself.
That’s a bait and switch, but.
1. I don’t do them any more (trousers, USD, time)
2. I was selling direct.
3. I have a brilliant relationship with the factory who are lovely.
4. I was working out of my front room.
And do Radon, Canyon, YT etc not also do R & D?
Clearly lots. But they don’t have a dealer margin, and will have more sales to amortise other costs (marketing, design, logistics) than these smaller brands.
Pat Jenner has been working on that, with support from Michael Bonney for a good few years.
What’s his salary, Michaels consultancy, trade shows, plus desk, plus NI, plus trips to Taiwan, plus sample builds, plus build kit – what’s that cost? Surely cannot be far of £150K you’d reckon? Easily.
So let’s do the sums – they sell say 300 a year of that model? 400?
Over two years?
That’s 800 into £150,000 – that’s £187.50 per frame actual costs to the company before you’ve even got your metal in a box.
$400 for a nice alloy frame. $50 for paint. $150 for a rear shock? ? Plus shipping ($15), duty ($12)
So we’re at $627ish? Which is £500 landed.
Add the £187.50, so that’s £687.50 landed developed sat in Ison’s warehouse.
They are idiots if they sell for less than 30% margin, so that’s. £983+VAT to the shop. Who take £1600 less vat for the sale (£1333)
If you can point out the error in my sums, crack on.