To: askcv
$110,000.00? You have to be kidding. How much does it cost to cut out a small section of hydraulic tubing and prepare the ends by flaring and then insert the fuse? Oh, I completely forgot that we are talking about Boeing. They probably wanted to pass on the costs of changing the drawings and performing the necessary tests on to each of the operators for each aircraft at the full cost of the mod. That would be a substantial amount added to Boeings' bottom line.
It reminds me of a job that I did on a part made by a German company. What I did would normally be charged off to the customer at about $10,000. The German Company paid me well for my services but gave the analysis to Boeing for free. The subject part was the truck positioner for the 767 main landing gear. The contract was written in such a way that the German firm would supply 250 ship sets (500 parts)and,50% spares (250 units) with these parts being provided up front. The parts would then be paid for when each individual aircraft was sold or, when a spare was sold. My boss who was an American had a great deal of experience in product support, discovered that each unit was priced at $6400.00. He told the marketing department that the price should be twice that amount. They said that a profit of six percent was sufficient. My boss contacted a friend of his at Lufthansa who also was a Boeing tech rep. My boss asked what Boeing charged the airline for a spare truck positioner. He responded, $23,000
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The Cat
[This message has been edited by Lu Zuckerman (edited 06 January 2001).]