Ripp Supercharger Question
#31
Of course the problem with waiting too long on the JK is that the pentastar is right around the corner. With an estimation of 300hp for the direct injection going in the wrangler. The resale on jeeps make trading up on a new one a viable option as opposed to bolting on 3-5k worth of supercharger.
R&D cost can be recouped by selling a whole lot of units at a lower profit per unit as well. This model also creates a larger customer pool, better longevity data and more word of mouth sales.
Selling high initially to recoup R&D works for drug companies because people are very motivated to live (and their finances are less important if they die), people with limited finances are willing to put off toys until they have the available disposable cash. Risk is that something comes along that supplants the product you were saving up for because it long period of time.
I know what I would do if I could make the same profit by having a few hundred kits or thousands of kits out there. I would want to boast about how many I have sold and let as many JK owner enjoy the product that I so proud of.
Last edited by bostonMA; 09-25-2009 at 10:14 AM.