FWIW,
Customer cost for a Groovy Ti frame is 2200.00.
My cost, for materials only, on my ti frames is $1128.00 for US mill 3/2.5 Ti tubing, 6/4 dropouts, and fiddly-bits like cable guides and bottom brackets.
This does not include the cost of the argon, filler wire, thoriated electrodes, special tig cups, ultrasonic cleaning, chemical prep or finish material, which adds another 280.00 dollars to the mix.
Ti is unbelievably hard on machine equipment such as cutters, saws, drill bits, etc so I figure in tool replacement costs per Ti frame at 75.00.
Now let's factor in the consumables of the business; electricity, natural gas heat, internet, phone, office supplies, building rent, insurance (100.00 per frame), and marketing. What do you think is fair...200?, never did figure this all out, makes me sick to do it :?
So total cost per Ti frame to me is $1683.00...and that is before you figure in the 38 hours of labor to build the sucker.
So, I am making 517.00 per Ti frame, or about 13.60 an hour.
That profit does not include the cost of the machinery, welding equipment, necessary non-consumable tooling such as heat sinks, purge fittings, fixtures, etc...
Madjh brings up an excellent topic, but his experience and understanding of the process is too incomplete to paint a detailed cost picture.
How do they do it so cheap in China and Russia?
I posted a very detailed reply in his last Cheap ti thread. Are all non-US ti products dangerous and bad? Of course not, but you must consider all the factors that go into the product...
A few more notes;
The tubing from Nova that is used as an example is a Chinese mill Ti and is highly irregular in diameter, shape and wall thickness. I checked out a few batches of the stuff and decided the quality control was not to my standard, sent it all back. It is NOT representative of the cost of Ti material used in the US.
The work force in these markets are grossly underpaid, receive little to no benefits, and are probably the most overworked/exploited workers in the world. The result is an inferior product...but a cheap one for you. Personally, I'd rather pay four times the cost and have their quality of life and the resultant product improve, not Racism, just reality.
Quality control is secondary to production of mass quantities.
Fabrication is completed without an understanding of the design process or product...workers that understand WHAT the component is, WHY it is designed like it is, and HOW it is to be used will produce a product of higher quality and tolerance than someone who is simply placed on a machine and told to duplicate pieces.
This subject strikes a sore spot with me, as the consumer market often has a mob mentality...easily riled and swayed with poor information and ready to strike against anything/anyone that is not with them.
Take time to educate yourself and do some research then share accurate information...all will benefit.
cheers,
rody