In_shore, you have isolated some of the direct material costs, you touched on some of the direct labor cost, but you completely eliminated any reference to factory overhead, manufacturing profit, and distribution/dealer profit.
In manufacturing, a 5x multiple is not unreasonable to generate a retail price. The motor alone would account for $25,000 of the retail price. VPIs retail pricing model is not out of line with other manufactures. Having said that, I still think it is a big misstep for VPI.
In manufacturing, a 5x multiple is not unreasonable to generate a retail price. The motor alone would account for $25,000 of the retail price. VPIs retail pricing model is not out of line with other manufactures. Having said that, I still think it is a big misstep for VPI.