NXTGENAutomotive
Peak Sponsor (Level 2)
- Joined
- Jun 12, 2024
- Threads
- 9
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- 70
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- 65
- Location
- Carlsbad, CA
- Vehicle(s)
- 2 Jeeps and a BMW
- Thread starter
- #31
For this particular item, cost is all tied to the complexity and costs to make it.I'm a firm believer in "you get what you pay for" but also pretty cheap and don't always need to get quite this much. Maybe i'll see you guys next year around Black Friday? who knows. I love the concept and would be buyer, just not at that price point.
Based on what happened with previous companies who made a clamp-on and other fold away step options, we approached this a bit differently. With most of our products, we custom design and create very unique, high-quality items, which are typically very unique vs other offerings. Our pricing usually matches this as well.
For the step pricing, we are coming at this very aggressively, actually, and are trying to do a value product.
The Archtype steps were billet aluminum, which you can't work with how we are building ours. That's a pricy material, but our premium US steel steps have about 4 times the material. The AR steps also were machined so there was no molds. Our tooling costs before we ever produce a step for purchase is near 6 figures, not including development. They were almost a thousand bucks for 4 small steps, but they seemed rather busy with orders.
The hideaway step is a similar price point to ours, but it is also very small, not nearly as complex and our costs to make something like the hideaway would be a fraction of what we are going to produce.
Eventually the tooling costs and development costs will be covered after many are sold. That will help a bit, but we are hoping for strong demand as we are pricing these pretty aggressively based on how complex and costly they are to make. If you factor the costs and complexity to build our factory rail solution vs any other so far, we actually have the strongest value proposition at the estimated price.
We could be way less if we simply had a rail with welded steps made overseas. There is a reason why you have not really seen something like this before. We've been making custom products for over 40 years and this could be one of the most complex projects we've ever done. The factory rail is an interesting piece. It is curved, it is asymmetrical, it is a unique shape, and it is full of all kinds of odd complexities.
We understand our steps are costly than some other options, like getting different rails, and some may go another direction. But we think the price point is within reason and we may not be able to discount it for a good amount of time. Because we are being much more aggressive to start vs the other options out of the gate, when our costs to build are the absolute highest.
We are a transparent company and I hope that helps to better understand why the costs are where we are projecting them to be.
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