Whats the production cost of Rx??

[han]

Can anyone tell me the exact manufacturing cost to build a single rx.Also the Rs.

[Nemesis]

Lol i doubt anyone would know that except mr erik buell himself.

[depechevelle]

I heard somewhere that dealer cost on the RX was $14k, don't know how true that is but it might give a clue

[han]

He aint talking much these days...understandably

[Hughlysses]

Prior to going into receivership, the bikes were going for what, $15k? Under LAP ownership, EBR was selling them for around $12k. I would guess the actual production cost is closer to the $8000-$8500 they're selling for these days.

The RS with Ohlins suspension, magnesium wheels, hand-laid carbon fiber, and hand assembled engines (which required the disassembly of a complete 1125 engine to start with) were no doubt MUCH more costly to build. Maybe $28k-$30k, or more?

[SteveM]

Productions cost is incredibly difficult to determine..and that for most kinds of manufacturing. After design and engineering the manufacturing costs are easy to calculate, but with the limited production of the 1190 the economies of scale are very sensitive to volume. Also how do you distribute the engineering/ R&D costs.

I would bet the manufacturing cost of the 1190 RX and SX (not counting R&D, and design since most of that could be rolled into the RS costs. just purely manufacturing) is probably $7k. But with marketing costs and R&D investments, its probably around $10k

[Cooter]

Or do the math backwards.

How many millions went into making about 1000-ish production bikes? Yikes.

[Doug Porcaro]

Erik himself told me the RS has $50k worth of parts which doesn't include the cost of their machinery, and that they lost $6-$8k per bike (sold at MSRP).

Cost saving measures can be seen in the plastic rear fender, non-Ohlins damper, and some raw finish / unfinished small carbon parts. Nothing that couldn't be righted if you care enough :)

[Scott]

Erik himself told me the RS has $50k worth of parts which doesn't include the cost of their machinery, and that they lost $6-$8k per bike (sold at MSRP).

Cost saving measures can be seen in the plastic rear fender, non-Ohlins damper, and some raw finish / unfinished small carbon parts. Nothing that couldn't be righted if you care enough :)

This sounds about right. They probably set costs based on a certain production volume that they were never able to meet, and at the low volumes they were making they were probably taking a big loss.

When LAP priced them so low, I thought "How can they sustain that? They'll have to raise prices when they actually have to start buying parts." But of course they never got to that point, and in hindsight, I don't know if they ever planned to.

[Hughlysses]

When LAP priced them so low, I thought "How can they sustain that? They'll have to raise prices when they actually have to start buying parts." But of course they never got to that point, and in hindsight, I don't know if they ever planned to.

Apparently they did order at least some new parts. For instance, front sprockets and chain sliders were supposedly recently restocked. I imagine you are basically correct though. I'll bet they had some internal milestones like "If we don't have XX dealers on board and/or are selling a minimum of Y bikes a month by (date) and/or by the time we run out of parts necessary to maintain production, we'll shut the company down." Their "5 year plan" was contingent on those milestones being met.