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Originally Posted by Penguino
Quote:
Originally Posted by Phatcat
Quote:
Originally Posted by Penguino
Quote:
Originally Posted by Phatcat
Quote:
Originally Posted by dmk08
Quote:
Originally Posted by Phatcat
Quote:
Originally Posted by dmk08
It's thousands more than a comparable kit for a GTR with brand new turbos.
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Maybe due to market size. |
I think you mean M Tax |
Yeah could be because it's BMW but it's also possible because of the market size.
I would think the tuning market for the GTR is larger than the M5. When it comes to amortize the development cost over unit sales I am not surprised M5's kit is more expensive. |
Look at the kit and I'm not sure any components require much more extensive development versus a GTR kit. |
You misunderstood me, I'm not saying M kit is more expensive to develop. I'm saying GTR market is larger hence more units to amortize the cost.
Let's say both GTR and M5's kit cost 1000 to develop, but GTR kit developer thinks he can sell 1000 units, where as M5 kit developer thinks he can sell 100 units, which kit you think will be more expensive? |
I understand you perfectly but you normally you amortize high tooling costs, excessive R&D etc. For it to be several thousand dollar difference in price it must be a very large development cost discrepancy which isn't the case. It's mostly M-tax and M owners willing to pay it. |
Well I don't doubt there are some M tax in there but at the same time I'm just saying the market size makes a difference too.