Forum Discussion
dubdub07
May 13, 2015Explorer
Big Katuna wrote:The Texan wrote:RJsfishin wrote:Insurance, insurance, insurance ..... In today's litigious society, the manufacturer needs to carry 100's of millions of $$$$ in liability insurance to cover the one or two weld failures, or vehicle separations that may occur on any one type of base plate. Blame the RVers for the high price, no one else.
The biggest ripoff, is the price of base plates,....$3-500
A lousy $139 for a frame mounted trailer hitch, requiring lots a steel, and very difficult to build.
And $3-500 for base plates requiring 1/2 as much steel, and not hard to build.
I don't know why.
I would add it isn't just insurance. As a business guy; it's overhead. Demco, Blue Ox, etc. have Engineers, fabricators, machinists, accountants, advertising and yes, liability for the products they sell.
My family is from Pender originally so I know the Blue Ox people. They have just a few engineers and two fabricators. They have a total of 115 employees and 88 are in Pender and most things are automated. They probably only pay one accountant on the premises and he/she would act as the CPA and maybe an auditor as they are a private company. Insurance has to be the same for any liability type company. These are not uncommon costs to run a business.
Blue Ox is a true example of a small family owned company that is doing things right.
WW
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