Michael, you really don't understand the basic concept that I am trying to make.
Let me try one more time. Lee, you listen, too.
Altho, I have not heard anything unique about the KM downpipe, that is okay. Well, that is wrong, the unique thing is that it is CHEAPER. Lot's of guys shop by price. That is okay, but it does not help the industry when the price gets too low. It hurts it.
KM offered a really good price in the eyes of the market for a group purchase. So cheap that he cannot afford to have someone keep track of his shipments, notify people of shipping dates, tracking orders, etc. He sees the lack of email, etc. as a good thing because he is behind on his committments. I suspect by now he wishes he had priced the offer high enough to be able to afford some help and he is probably wondering if it is all worth it or not.
Pricing is not only determined by competition, but by material cost, labor, utility bills, etc. As he has not built a better mouse trap, just another one, he will have to compete on price and volume. At the current levels of pricing, he may offer a good product but is obviously having problems with the service end. This does not mean that he is a bad guy, just means he is currently underpriced and trying to develop a market. He may find why the other guys charge what they do unless he is doing this as a hobby.
Now, Michael, your sarcastic little sound bite about tie down straps. I have three cars with Paul's poly mounts. I find them to be unique products and I did not question his pricing. I also have a number of other items from Paul. I suspect that if someone tries to compete with him, you will say competition is good and buy the lower priced unit as you will be unwilling to pay Paul for the time and effort he put into designing his products when someone else will simply look at them and start tacking them together.
Lee, TH did not just go out to the garage and start whipping out dps. He did not have a pattern to go by. Like Paul, he went thru product development and testing. When he introduced his product, there was not another to compete with. He broke new ground. You are absolutely correct. Some people are either too close minded or simply unwilling to accept that creativity, innovation, and engineering time have some value.
If KM lasts long enough to continue his business, I suspect he will learn what it really costs to build a product and, if he builds a better product, then TH, CAS, or whomever else he wishes to compete with will be forced to contend with him. I bet he wishes he was getting a lot closer to the TH price at the moment.
