Quote:
Originally Posted by ///M1
This is my opinion, and you don't have to agree with it. Why do I think $6K is too aggressive - very simple - the pricing is too aggressive relative to the value of the car. $6K on a $47K car is 13% of the value of the car. For what - a slightly exotic sound, that delivers a handful (if that) of real HP gains. Of course it will deliver intanglibles like aesthetics, looks, perhaps perceived status. And to each their own, to some maybe all that is worth it. Heck, as we know there are always label lovers that would buy it only so they can brag they have the most expensive exhaust made for the platform.
The issue is not whether the manufacturer can justify the price, but can the buyer do so? Sure, based on your reference to the M3 and 335i, it sounds like the manufacturer can charge a ballpark figure near there on a the relative basis. But will buyers fork out that much for a mod which at the end of the day is largely sensory. Or would they rather spend that amount on upgrading the car in other ways (go-fast mods), or even spend it in a completely different way (e.g. pay down their mortgage).
The manufacturer I am sure will have his own internal profit metrics. They can decide to price it high and expect a handful of customers (i.e. boutique style approach). Or they can decide to price it lower and rely on higher volume. At the end of the day, it is totally their prerogative, and I can't blame them whichever way they decide to go. But they also will have to factor the cusomter's demand curve, and how price elastic it is. Given this is an 'entry level' ///M (absolutely no pun intended), I recon the demand curve of the average customer is very price sensitive/elastic.
But just saying $6K is not aggressive because that is what they charge for other cars bears no relevance. Compare to other companies out there (see my link to Capristo which by no means is less impressive than Akra). See their craftsmanship and product base, and then see what they are charging for pieces of art for cars that cost 8 times or more than the 1 ///M.
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How is comparing to other companies relevant at all... the akra exhaust for M3 and 335i is 11% of the value of those respective cars, 13% for the 1M isn't so far from 11%; yet that's the price point they set. If buyers won't go for a 1M exhaust priced so high, why do M3 and 335i owners? What you're doing comparing Akra to Capristo is arguing that Akra is overpriced. The fact that other companies offer comparable products at a lower price point has no bearing on how much the Akra exhaust for the 1M will be since it had no bearing on how much Akra priced their exhausts for the M3 and 335i!
Also, why d'you think the demand curve for the average 1M will be very price sensitive/elastic? "Entry Level" is just a name, the 1M is MORE expensive than a 335i (who's exhaust is priced at $5000). If anything, 1M owners are also going to be more willing to blow money on their car than 335i owners since most of us have committed to a car thats had 0 reviews.
Whether it's $6000 or $5000, its still too expensive for me; but that's the price points they've set for the M3 and 335i. I don't see how the fact that buyers won't go for it, and that other companies offer exhausts for cheaper will make Akra price the 1M exhaust cheaper than how they price the M3 and 335i exhausts.