The costs are materials, labor and non recurring expenses. Engineering is part of the non recurring cost just like tooling.
The materials are raw materials and the labor is just that - the actual direct touch labor involved in manufacturing the product. When you weigh an ordinary old Porsche you will find that the amount of raw materials consumed to make one is about the same as the raw materials used to make the limited production item. You also know that it does not take an extra $200,000 to build the more powerful engine and better chassis. When you break down the cost in that manner you will find that the consumer is getting hosed for the distinction of owning a limited production car. The primary reason for the high price is just limited production quantities to spread the non recurring costs over.
I test drove a Mercedes with a set of optional AMG wheels. The cost of that little option was $9600 over the cost of the standard wheels. There is no way that those wheels cost an extra $2400 EACH to produce compared to the stock wheels.
The marketing people want you to believe that but a sanity check says it is not true.
The materials are raw materials and the labor is just that - the actual direct touch labor involved in manufacturing the product. When you weigh an ordinary old Porsche you will find that the amount of raw materials consumed to make one is about the same as the raw materials used to make the limited production item. You also know that it does not take an extra $200,000 to build the more powerful engine and better chassis. When you break down the cost in that manner you will find that the consumer is getting hosed for the distinction of owning a limited production car. The primary reason for the high price is just limited production quantities to spread the non recurring costs over.
I test drove a Mercedes with a set of optional AMG wheels. The cost of that little option was $9600 over the cost of the standard wheels. There is no way that those wheels cost an extra $2400 EACH to produce compared to the stock wheels.
The marketing people want you to believe that but a sanity check says it is not true.