We'll use an AEM Zetec Long tube as an example here because I have one sitting here next to me.
Box contents:
Instructions - Just paper, but it took time and effort to write them, and also ensure that the install is the same on all models/trans'/bodystyles/and years. That costs money.
Tag Frame - Purchased in quantity, it maybe only costs .75 cents. But they had to lay out the $10,000 to order that many at a time. Thats not always easy.
Hose Clamps - 6 All Stainless steel Norton or BREEZE US Made brands. Even though they buy millions of these, they still cost at least good money. Ebay intakes use garbage nickel plated steel that rust and rarely ever offer any actual clamping force. Again, they do they cheaper in quantity, but they had lay out 5 figures to get that price.
Hardware - 2 Nyloc nuts, 2 washers. Nothing complex here. About .50 cents.
Vibration mounts - Purhased in qauntity, about $1.00 a piece. Agian, large capital investment to get them at a reasonable price.
Torx Key - $1.00. Nice of them ot think to include it. For removing the MAF electronics from the stock housing.
18" 5/8" Breather hose - Quality Gates US stuff. Bought in bulk, probably .50 cents, agian, they probably bought $1000's at a time to make it affordable.
3 1/4" - 2.5" Reduction Elbow - This is an AEM piece, not off the shelf. Im guessing they mold these in house. Theres quite a few machines needed to make these: A sinking EDM maybe. A good ones $100,000. A bunch of graphite will be used to make the impression maybe a couple a hundred, which would have been machined by a big CNC machining center, $100,000 there (you'll need to have several electrodes, a rough, and then several finishing to make the piece) a big piece of hardened steel for the die, $200-500. An injection molding machine. $100,000. And dies dont last forever, the break down over time, so this cost is not neccesarily a "one time only". The raw material - the rubber itself probably breaks down to .50 cents individually, again, when purchased in large quantity.
Vinyl Decals - 2. Maybe .50 cents a piece. They had to buy alot of these too for that money.
2.5" Aluminum Tubing - About 4 Feet of it in this CAI. Even purchased in quantity, this stuff still costs several dollars a foot. I wouldnt doubt $3-4 per foot.
Bending - The last time i checked, the cheapest mandrel bender Addison McKee had was about $150,000. Your local exhasut shop DOESNT have one of these.
Brackety - 2, about 10" between the two, about a buck worth of material.
Bending - at very least a good hand brake, maybe $5000.
MAFS port - 1/2" thick by 3" by 2" aluminum stock. $1.50 here. Again, you need a machining center, $100,000. You'll also have had to design this part on your CAD system, (AUTOCAD is a couple grand) and a CAM system to drop the file into your machine, ESPIRIT runs abou $6000 for their 6 Axis software. A good computer $500. Drill and tap a few holes.
5/8" Tubing - About an inch for the breather - .20 cents in qauntity. You need to cut a whole bunch of these in qauntity, a big automated bandsaw would do. $5000.
Robotic Welding - Im not even sure on this one... But alot.
Filter - This is probably just a K&N piece. But im sure even in large quanitity its about 15-20 a piece.
Polishing - This ones polished, others a re powder coated, either way, more tools and cost involved.
CARB certification - This takes a long time and alot of money. 10-50,000.
And there ya have it. And then you have:
Wages - Operators for all that machinery get paid. Ussually, quite well, because they are skilled. You'll also pay taxes as their employer. You've also got people in the office, programmers, warehouse staff, advertising, etc. If one guy makes $45,000 a year, you'll pay another, i dunno, 5-10 in money to the gov thats not even part of their paycheck.
Prototyping - Anyone thats ever made something knows that the first version of something is rarely the last. You;ve got to try things and make mistakes so the final product is good. That process is costly! Spending the time to properly engineer something that not only fits, but is easy to install, looks good, and acctually performs is probably the costiest single investment of these!
Insurance - A company like AEM pays a bunch on operating insurance. I'll venture to say $100000 a year.
Your facility - Im sure AEM's rent or mortgage is in the 5 figures every month. You'll need a big space to house all that stock you had to buy in quantity to get a good deal.
Consumables -
Taxes - If you have ANY inventory at the end of the year, its taxed like its income. I'll bet you AEM has a couple million in inventory at any one time. So maybe another couple hundred grand to the gov.
Utilities - Between gas, electric, heat, water, sewer, dumpsters, phone, internet, etc, im sure theres another $10,000 a month.
Advertising - Easy 1,000,000 a month for AEM. Im sure there racing teams are not working for free either.
The list goes on and on. At the end of the day, AEM has to make a profit too to stay in business. Thats what a business is all about.
And your telling me $200 is alot for an intake.
The reality is , thats the cost of doing business.
