Well in my line of thinking Capt., if you can't make atleast 50% profit margin on any business you are in, it aint worth it. The cost of stainless is by far the most expensive cost in the equation from raw material to finished product. However comparing a stainless bolt's price to a galvanized isn't a fair comparison. The very fact that 9 times out of 10 most dudes are going to but the galvanized over the stainless, so a store is going to buy galvanized in much higher bulk than the stainless bolts. So a comparison in the retail price difference isn't going to refect manufacturing costs differences.
Another thing we have to consider is the fact that AERO buys huge rolls of stainless steel sheet that probably weigh somewhere between 20,000 and 45,000 pounds each. This gets the costs down considerably.
They would take these rolls of stainless and then stamp out the final product! I would imagine that after your tooling was paid for, then your profit margins would be quite high, this is one of the things that attracted me to this merger in the first place! It would be nice to actually know what the profit margins are, but I would say they are above 50% especially if the tooling is paid for. No offense to you Capt. at least I can tell that you dont just sit at a desk all day! I'll see if I can ascertain a guestimate on how much the profit margins are in the performance exhaust industry, it will be a project for me this week! Mr. TrendGreen
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