Forum Discussion
rbpru
May 21, 2014Explorer II
Since we do not teach basic economics anymore, it is not surprising that people are shocked at prices.:E
The biggest factors that influence cost are; materials, labor, volume/over-head and demand. While you use less materials in a small trailer, materials often a small portion of the overall cost. Labor wise it costs a much to install a small door, table, window etc. as a big one.
Volume/overhead are intertwined, it is easier to spread the operating costs such a lights, heating, Sales dept. and office equipment over 5000 units per year than 500 units per year.
And of course, as already mentioned those little guys are popular, so they command top dollar.
I must admit I have shaken my head at some model costs. :h
The factories make and the dealer sell what the people want at the price they will pay. They just hope they guessed right and are not stuck with some model that is a real dud.
The biggest factors that influence cost are; materials, labor, volume/over-head and demand. While you use less materials in a small trailer, materials often a small portion of the overall cost. Labor wise it costs a much to install a small door, table, window etc. as a big one.
Volume/overhead are intertwined, it is easier to spread the operating costs such a lights, heating, Sales dept. and office equipment over 5000 units per year than 500 units per year.
And of course, as already mentioned those little guys are popular, so they command top dollar.
I must admit I have shaken my head at some model costs. :h
The factories make and the dealer sell what the people want at the price they will pay. They just hope they guessed right and are not stuck with some model that is a real dud.
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