Yeah, yeah, I'm not completely ignorant of basic economic principles, but
even our local Northern California wire wheel shop told me it wasn't
economical to "rebuild" them (not even including complete respoking, just
replacing "as necessary" and truing). So I was curious as to why Paul's
mechanic thought he could afford to completely respoke them (and
subsequently, true and balance them). Around here, it would take only about
three or four hours of shop time to equal the cost of a new wheel, not even
including the parts (think -- how quickly can you replace 60 rusted-tight
spokes?). I also failed to include the cost of 60 nipples. Obviously, the
wheels Moss sells are assembled in a lower-prevailing-wage region.
I might further note that it looks like you are accusing Moss of a 800%
markup on spokes (or some similar large percentage). I am not sure that was
your intention, but it seems to be implicit in your argument, assuming they
are buying from the manufacturer (and I can see no reason why they wouldn't,
being probably the largest retailer in the market). At any rate, you don't
explain how a local mechanic could get a better wholesale price on tiny lots
than Moss does on its relatively huge orders.
I was assuming a 100% markup from manufacturer wholesale to Moss retail. But
even if it is 400%, my rough calculation is that respoking and truing a
wheel would be profitable only if it could be done in an hour or less. If
the spokes were FREE, it would still have to be done in 3 or 4 hours shop
time. That includes cleaning, disassembly, assembly and truing.
--
Max Heim
'66 MGB GHN3L76149
If you're near Mountain View, CA,
it's the primer red one with chrome wires
on 5/7/07 12:25 PM, Barney Gaylord at barneymg@mgaguru.com wrote:
> At 10:04 AM 5/7/2007 -0700, Max Heim wrote:
>> I am surprised that respoking your chrome wires would be considered
>> economically feasible. My 2006 Moss catalog lists the retail price
>> .... adds up to $650 per wheel. ....
>
> That answer is easy (and sort of fun). There will be multiple steps
> in the distribution system, each with a price markup resulting in a
> huge difference in retail price compared to cost of manufacturing
> spokes. Anyone seriously in the business of rebuilding wire wheels
> will likely buy spokes directly from the manufacturer in large
> quantity for substantially less than the cost of a new wheel.
>
> Manufacturing spokes is an automated process almost as easy as making
> wire clothes hangers. Start with a piece of wire, roll a thread on
> one end, cold head and bent the other end, all in a matter of
> seconds. Stainless steel wire is a few cents more than mild
> steel. Chrome plating could double the cost, but they are still
> pretty cheap to manufacture.
>
> Corn is about $0.10 per pound on the farm, while corn flakes are as
> much as $5.00/lb retail. When you pay $1 for a soda in a fast food
> restaurant you should know the paper cup costs more than the soda and
> ice inside. As with many things these days, when you are buying one
> piece of something the end retail price can come mostly from the cost
> of distribution and related profit margins.
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