GMP - Stephen

Well guys, I feel the need to chime in here as Brand Manager for speedART USA, and also as Business Development Manager for GMP. I can understand your concerns about the price of upgrades like this, but I think you need to be made aware of just what it takes to bring something like this to the marketplace.

Unfortunately, modifying a $100,000 vehicle is not for everyone, and neither is the purchase of a $100,000 vehicle. If you look at the auto industry as a whole, Porsches are low production cars by nature. And that’s before you consider the current economic climate. So compared to products for more common vehicles, speedART does not stand to sell a whole lot these to begin with, no matter the price. They are in business to make something for a profit, and despite the sticker shock with which you guys are reacting, the profit margin from these not is as high as one would think.


Here’s a rundown of what it costs to develop and produce these:

As of today, the lights need to be bought at the dealership, $257.26 each. We now have to deliver a new part and cannot re-use the old ones because they are rock chipped and pitted to an extent where you cannot resell them as a new product. Would you guys accept a used set on a core exchange basis that was in worse shape than the one you sent in, and pay around $700?

Once purchased, the units need to be modified correctly with the LED's and then resealed. To manufacture a completely new product in China would mean copying the OEM Porsche part (generally frowned upon!) and producing an extraordinary number to justify the startup/mold cost. So putting your businessman hats on, if you look at the number of 997's sold and also consider the number that will ever be modified, a "hand-built" option is more viable.

Next comes marketing. As a tuner, the vehicle has to be purchased for R&D. This can be itemized out into development costs for not only lights, but also exhaust, aero, etc, but there is a significant cost there none the less. And you have to pay installers, engineers, designers to develop these items creatively and not just copy an idea once it’s out. Also, depending on the company, you also have to pay people to take photos/videos of the products, have facilities to support the installs and development, own/maintain the cars, pay for magazine ads, write/send out press releases, etc.

Furthermore, the cost is adjusted to support a dealer network for the product. Any manufacturer will have a network to allow for local resellers in areas where direct sales are not possible. In addition, international companies have importers for each country, who in turn have to sell to the dealer network. This network also carries the expense of local installers, web resellers, etc, who all have their respective costs for technicians, brick and mortar facilities, and forum sponsorships just to name a few.

Lastly, the value of the dollar adjusted to the cost of the Euro plays a large factor in this as well. When an item is 1,000 euros, you have to look at the current exchange rate when determining US pricing. So for instance, when the rate fluctuates between 1.3 and 1.6, which it has in the last few years, those items are now anywhere from $1300 to $1600 USD. And don't forget that fuel prices have increased, so to fly these little units over here from Germany is now $100+ with freight, duties, customs, etc.

Now, if you want a $100 upgrade, go buy a Honda Accord. Or do this yourself. You bought a Porsche, so honestly you should expect to pay for modifications accordingly. Companies that produce them certainly have to price them accordingly, to cover the overheads of R&D/manufacturing costs, and all the aforementioned factors as well.

Theoretically, all this could be done on your own, much the same way you can build a house on your own if you have the time, know-how and skill to make it last for years to come. But not all of us have those skills, so we must pay contractors to take care of the construction for us. Just as we must pay tuners to manufacture our aftermarket parts. This is nothing new...

If you have any more questions about these, feel free to PM, email (stephen@gmpperformance.com), or call me (1-888-488-2028, ext 256).

DanJK

5 pages by 5.

pmgoodwin

I'm not sure if you did any did any research to see what customers would pay for something like this before launch. If you hadn't before I think you have got all the data you need now.

A good idea at the wrong price is the same as a bad idea.

Graygoose997

There's a whole lot more money to be made on retrofitting the Audi's and 997's back to good old lamps.
IMHO, the strand of LED's turns these cars into cheap looking Christmas tree like lighting.
Let me know how many guys with good looking front ends opt to spend _anything_ to cheapen the classic look of the pre LED cars

The original idea back in the day was to develop LED headlights....
Lacking the technology advances required to make headlights a reality, the LED's will be relegated to rear lamps and the misuse ,in this case , as a bad stylistic statement.
Another year and Audi then Porsche will be touting the "return to classic" as they dump LEDs as just another misstep by Porsche

GMP - Stephen

Pricing items can be difficult.

What one person feels is a value, another does not. These lights are nothing more than a fashion accessory.

The same can be said on a set of forged HRE wheels vs. a set of cast Replica wheels. They both do the same thing, why would one pay $6k for a set of beautifully machined forged wheels made in the USA that are the same height, width and offset as a replica set of Turbo Twists made in China. There are many differences and comparitively, the HRE's are gorgeous and the turbo twists are stock, and when made overseas, are many times inferior to the factory ones produced for Porsche in Germany.

Same principal here. There is a certain amount you are spending on novelty. Give it time and if the LED's catch on (matter of each persons opinion), then you will see them sold at local Pep Boys and AutoZones for "conversions".

Then if comparing apples to apples with production methods and volumes, well thats a whole different conversation.

ATL944

Jetpilot

NO offense to GMP-Stephen - I am sure it is a great product and RD cost a lot to bring this to the marketplace and I wish you well.

BUT - I think anyone who does this is a total POSER LOL!

I agree 5 pages by 5.

Carrera Mike

Have you guys seen the ones on that green cab on the cover of the latest Excellence magazine?

blk on blk

I wish you luck with this venture.

GMP Performance

Here's a video from speedART if anyone is interested:

http://www.youtube.com/watch?v=Q7XRLhdyCO0

qirex

that didint end well...

I agree - LEDs are too close!

1Carnut

This is not really that hard to do, all you need is the LED's and a relay, my shop is playing with something we put together for my BMW right now, I think we spent about $30.00 so far.

qirex

yeah, the light strips are $3 for each side.


lols

qirex

http://www.ledlightsworld.com/95-inc...eds-p-122.html

axhoaxho

This product is a good idea, but has an aftermarket feel to it.

The OEM LED design seems more sophisticated -- in addition to multiple LED bulbs, it also has some optic designs that make the light appears like a line from some angles.

I think if the company can improve the product to make it appears more OEM-like, and lower the price to some degrees; it might attract quite some buyers to purchasing the product.

Just a thought.

With best regards,