Re: SS brake lines

["Graydon D. Stuckey" <graydon@apollo.gmi.edu>]

On Fri, 18 Aug 1995 AUDIDUDI@delphi.com wrote:

> I find it interesting that a part that's too expensive for a manufacturer to
> buy at the wholesale level is generally cheaper than the "cheaper" parts the
> manufacturer used instead when bought at the retail level.  I don't remember
> learning anything about this in Econ 504 (maybe I played hooky that day?)...
Jeff,

	It is a rather perplexing situation, but I think it is primarily
due to market conditions.  For example, my SS brake lines were 45.00 which
means the fronts were approximately 25.00 and the rears were approx 20.00
( they are not the same length).  That means that each front line cost me
~12.50.  GPR probably buys the fittings for less than 1.00 each, and the
line for 2-3 bucks /ft, so they have about 5.00 max into the line.  Since
they are the manufacturer, adn marketer, they can get by with selling the
part for 10-12 dollars, adn still make good money.

	GM can probably get the fittings for about half what GPR pays due 
to their volume, but the line is much cheaper in the DOT type.  GM 
probably has 2.50 or less into one of their brake lines.

	So, you would expect that the OEM lines would be cheaper right?  
Well, no, the EOM market (mostly mechanically uninclined or insurance 
jobs) will pay quite a high rate for those OEM lines, while the 
aftermarket, usually a smarter, DIY type of customer, will not pay more 
than what they deem reasonable, which is quite a bit less than the 
insurance companies will spend.  This is especially true in the wheel 
market.  Look at Audi OEM wheels - they are ridiculously expensive, and 
for tiny little 15x6 wheels!  I cna buy gorgeous 17x7.5 MOMOs for half 
the price!  That is just what the two very different markets will bear.

	Sorry for the rambling.  Just kinda struck me.

Later,									
Graydon D. Stuckey								
graydon@apollo.gmi.edu								
'86 Audi 5000 CS Turbo Quattro, GDS Racing Stage 1
'83 Mazda RX7 w/13B, GDS Racing Stage 58474