3 Things that will make your relationship successful in Thailand

[BSJ]

My mate and I are having a dispute about the real production line cost of Honda manufacturing a CBR250.

I say the real cost to put one together including labour would be 12k baht to 15k baht. My mate reckons about 60k baht.

I didn't include extra costs like admin, R & D, emmissions testing, marketing or profit. Just the raw cost.

Who is right?

Out of interest.....what is the cost of building a ER6n?

I would say 15k baht to 20k baht.

[thaicbr]

I think your mad if you honestly think the production cost of the Cbr250 is only 20,000b.

I would have thought that your lower figure would be Honda's cost at bringing in parts from other suppliers. like forks. shocks. tyres etc

Edited April 4, 2012 by thaicbr

[YipYipYa123]

i doubt there would be anyway to make er6n for 15-20k ..............1200-1500% profit ?

the engine alone might cost that +

you cannot skip the R+D part of the equasion either because it is a contribiuting factor to the cost of each unit

the manufacturer would never release such information but im sure they make a nice profit because of the high sales volume

of these bikes and the ability to buy stuff like tyres and other parts in great bulk amounts

a better question would be how many % does a dealer get for seling an er6n ...... 10 % .....more ? less ?

[monty1412]

BSJ... you have just gone to top of my list for the person I would least like to be stranded with on a deserted island with no hope of rescue

But seriously how is it you and your mate are coming to have this argument... has all the paint dried in your condo now and there is nothing to speculate about...

To jump in where angels fear to tread... I would reckon that full manufactured cost including fixed and variable cost base of 250 is around 55-65K maybe a bit higher on a fully allocated cost basis including Honda corporate burden.

Work it backwards.... if a dealer is selling for 110K and making say 15-20 % GP then thats a cost base of 93K from factory lets say 90K. Honda must be making 25-30% to cover full corporate burden so that then is around 65K cost base at 25% GP.

[BSJ]

BSJ... you have just gone to top of my list for the person I would least like to be stranded with on a deserted island with no hope of rescue

But seriously how is it you and your mate are coming to have this argument... has all the paint dried in your condo now and there is nothing to speculate about...

To jump in where angels fear to tread... I would reckon that full manufactured cost including fixed and variable cost base of 250 is around 55-65K maybe a bit higher on a fully allocated cost basis including Honda corporate burden.

Work it backwards.... if a dealer is selling for 110K and making say 15-20 % GP then thats a cost base of 93K from factory lets say 90K. Honda must be making 25-30% to cover full corporate burden so that then is around 65K cost base at 25% GP.

I would prefer to be stranded on an island with any number of sweet Thai girls....but not you Monty. No offense intended.

So your saying my mates estimate is closer than mine?

[Kf6vci]

Just check the annual reports of highly successful car manufacturers.

Their net profit - after taxes - is single digit %.Marketing & sales usually accounts for

almost 1/3 of total costs. But the LSVA (Labour Share of Value Added) will be low in Thailand, due to low wages.

How on earth do you come up with these low numbers?

Chris

[madjbs]

12k-15k...... you got to be joking!

As other posters have said, work it backwards and a figure of around 65k is close to the mark.

Edited April 5, 2012 by madjbs

[smedly]

if you are talking pure labour costs/man hours on the factory production line then based on minimum wage per day and how efficient the process is - which in a production line I would assume is pretty efficient then you could probably assume 3x days work per person for one bike, at this point probably no difference between CBR250 and ER6N, adding the cost for the parts/materials including logistics then it's hard to say and would be anyones guess, a significant contribution to the overall cost of any product would in fact be R&D and ongoing developement - inovation is what sells, 15-20k probably wouldn't buy the engine and gearbox considering they have to be assembled also and is most likely contracted out along with all the other individual parts

so you can guess as much as you like but it really is impossible to say, one thing is for sure - they do turn a tidy profit

Edited April 5, 2012 by smedly

[moe666]

If you really think about it most car and motorcycle companies are in the leading money business. Many of these companies have there own loan services and that is where the real money is and ooo extended warranties.

[bbradsby]

...How on earth do you come up with these low numbers?

Chris

... uhhh, by merely looking at the bike? I say the build cost is around 20-30, quid that is! ok, sorry, couldnt resist. they're pretty nice little bikes for the sales price. Assume the margins to be, marginal. It's a volume game for the Big Four.

Edited April 6, 2012 by bbradsby