ternion
Elio Enthusiast
I agree with CheryIM, their tour costs are minuscule compared to their costs to plan, lease, design, build, hire, train, stock, & manage for 60 retail centers across the country. Consider that, then bump up the price for the 2nd year.
Further, I'd say they are pretty thin on the parts they can outright remove, simply because of what they have already promised their customers. For those parts they have not yet set contracted pricing, they can maybe source for a better price, or build in attractive variable pricing based on high parts volume.
Also, I don't know how they can be so sure their number is $500 unless they have their assembly line perfectly mapped out with precise stations, tasks, head counts, and wages/benefits from start to finish; I just don't see that as very likely at this point. Assembly costs aren't too much cheaper than the cost for the parts; there may yet be room to optimize the line and make up that $500.
Further, I'd say they are pretty thin on the parts they can outright remove, simply because of what they have already promised their customers. For those parts they have not yet set contracted pricing, they can maybe source for a better price, or build in attractive variable pricing based on high parts volume.
Also, I don't know how they can be so sure their number is $500 unless they have their assembly line perfectly mapped out with precise stations, tasks, head counts, and wages/benefits from start to finish; I just don't see that as very likely at this point. Assembly costs aren't too much cheaper than the cost for the parts; there may yet be room to optimize the line and make up that $500.