Originally Posted By: used_0il
I'll guess $100 million per tire size from start to finish to develop, build molds, test
and inventory the major warehouses in North America alone.
I'm guessing the molds at $120,000 each, and 2,000 of each size as a bare minimum
initial run.
If I do the math $100 million divided by 2,000 = $50,000 each tire. Doesn't sound right.
Let me walk this backwards:
If a tire sells for $100 each, I have been told that the car door cost (what it costs to make it - labor, materials, and the cost of the plant), is about $50. The other $50 is distribution costs, and administrative costs. Development would be part of the administrative cost - and I'm going to estimate this at about $5. This would NOT include the cost of the molds nor any of the equipment. Just the R&D costs to get everything in place.