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RE: Europa-List: engines

Subject: RE: Europa-List: engines
From: Andy Silvester <andy@suncoastjabiru.com>
Date: Fri, 5 Aug 2005 17:31:34

Hi Fred,

Perhaps unsurprisingly, it wouldn't be very professional of me to discuss
specific dealer margins here. I didn't want to open a debate about it, just
wanted to point out that sometimes products are promoted (or otherwise)
based not necessarily on the product's performance or value, but for other
business reasons. If you sold Rotax engines at (for example) a net margin of
16% where you could only get (say) 7%-8% for a Jabiru, would it affect your
promotion of the Jabiru? I'm not bitching about it, just pointing out that
across manufacturers, there isn't always a level playing field.

Cheers

Andy 

Suncoast Sportplanes, Inc.
www.suncoastjabiru.com


>
> It's also a fact that some aircraft manufacturers suppress
> the Jabiru's capabilities in favor of Rotax because they
> make more money selling a Rotax than a Jabiru. It's a
> cruel world....
>

Could you post exact numbers regarding relative margins?
Especially on the Rotax 914 -- not MSRP, but how much must
they have to accept or they're not selling very many.  I
don't know enough about the 3300 to oppose it for any
reason.  Just tryin' to urge conclusions be taken a couple
steps back to actual data, should this help a builder
choose.  Obviously if in buying a Rotax, much of our cost is
reseller profit, the 3300 may have more intrinsic value.
That's why big SUV's are relatively bad buys.

Fred F.



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