Thread: ADR 3/03 seats
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Old 09-14-2012, 10:14 PM
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Merv,

I believe you are correct with the cost of compliance. Justcobra, you need to remember that the cost is not just the materials. There is the time that goes in to designing the seat, making jigs, and the large cost of compliance. Combine all that with a low volume expected to be sold and the price per unit has to be high.

There is no accuracy to these numbers, but lets say as an example.
$10,000 for compliance testing
$5,000 for the time to design the seats, build the jigs and manage the testing process.
$15,000 for R&D

Per unit
$100 materials
$200 labour - 4hrs x $50 per hour
$300 total

Total cost per seat if 100 are sold
$450
Thats without any profit.

Plus the cost of rent, electricity, insurances, business admin, accounting, consumables, equipment etc, etc.

Dont get me wrong, we certainly pay a fortune for a lot of things here in Australia, but we need to respect that these companies need to stay in business.
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