Why parts cost what they cost...

Hello,

Normally we don't post on forums, but we felt it necessary to help everyone understand what it takes to supply these parts to the Mazda or any community that we make parts for. Hopefully this category is acceptible.

Most people think that it's just the R&D of a product that drives up the cost. Yes and no. Whenever you compare two products, one should also compare the two companies, they may not be an apples to apples comparison. Most people judge soley by the price and never take into consideration the company and the costs of that particular operation.

Turbohoses and companies alike all have an overhead which may not be too familiar to most:

PDI (developement insurance) is one of the a@# kickers in this industry. The cost of this coverage alone quickly adds up to almost 6 figures per year for a company like ours.

City Permits: The city takes its chunk for anything we do, bolt down, add to our facility. An inspector/fire inspector comes in weekly to go through everything we do and if they find anything that is not to par, they tag us with a fine.

Equipment: Welding equipment, chassis dyno, plasma cutters, benders, etc.... all have a huge costs. This is one of the places that you can compare one business to another. Two weeks ago we upgraded our chassis dyno and the costs was double our old one. We felt it necessary to have only the best equipment to support the communities we design parts for. Home based buinesses won't have any of this type of overhead.

Employees: Workman's comp., customer service, accounting, fabricators etc...


Inventory: We stock 1,000,000.00 of our parts everyday. Each of these products must be kept in warehoused, accouted for, sku numbers and logged.

The list goes can go on, but we just wanted to give everyone a basic understanding of any company, not just ours.

Any of our local and even not so local customers can drive up to our front door M-F or give us a call.

We're very happy to have a very high demand for our products in this community. The support has been awesome and we will continue to do our best.

Regards,

Hoover
www.TurboHoses.com
P: 925-803-1555
 
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