- Joined
- Sep 28, 2002
- Messages
- 39,793
I'd throw out the manufacturing costs. The tooling was in the millions for a new dedicated line. Given the margins on filters, it would take a long time to recover the capital outlay. It was for future market share where future disposal costs would make the Ecore a much more economical choice for the trade.
The difference in cost (this is my speculation just based on common sense) between an orange can and M1 in rolling costs is probably a quarter. The rest is licensing, distribution, and ROI at every step to retail.
I mean, just what is fundamentally different between a $6-$8 retail WIX and a $2.x-$3 ProSelect? Better media and a silicon ADBV? That's about it, right? On some a thicker can? How much do you really think that could add to the cost of a filter in a rolling run of XX,000 (or whatever the number is)?? Now it could add up to $30k in added material costs for an order ..but..
The difference in cost (this is my speculation just based on common sense) between an orange can and M1 in rolling costs is probably a quarter. The rest is licensing, distribution, and ROI at every step to retail.
I mean, just what is fundamentally different between a $6-$8 retail WIX and a $2.x-$3 ProSelect? Better media and a silicon ADBV? That's about it, right? On some a thicker can? How much do you really think that could add to the cost of a filter in a rolling run of XX,000 (or whatever the number is)?? Now it could add up to $30k in added material costs for an order ..but..