Eric, you can't compare the Toyota and Isuzu prices .. the volume is different by a multiplier of 5, maybe 10. I think Tera charges too little for their Isuzu gears -- I told Mark early on in development that Isuzu drivers were willing to pay a premium for product, since the applications were so limited. He resisted, though, and set his prices with the same margins that he uses for Jeep applications, regardless of the fact that he sells many, many more of them, and can get better bulk prices on his raw material and machining, and better-amortize his business overhead across greater volume. I still wish he'd charge more, if it meant keeping the product line. In other words, I think they are being VERY realistic on prices, perhaps even pricing too love for the volume, and I believe the market would bear 25 to 50% higher prices, and not lose all that much net volume. Michael's the economist, so keep in mind that I have no degree, and only a solid view into the world of aftermarket 4x4 products upon which to base my impressions of price.

You also can't easily compare the Toyota and Isuzu gears -- their completely different layout allows MUCH steeper gears on the Toyota side, where in the Isuzu case, the exceptionally tight packaging allows only modest gains. Had Tera xfer case gears been available when I was building my transmission, I might have opted against the full-on tranny and transfer swap... or I might still have elected the big swap for the bigger gains. One thing I wish I had, though, was the CHOICE of Tera. I didn't have it back then, and it looks like we won't have it in the future.

I will thank the folks from Tera when we bump into each other next, and offer my regrets that they're leaving the market. I understand why, but I still hate to see them go. <img src="/forums/images/graemlins/frown.gif" alt="" /> For a bit more insight into why, consider also how closely they worked with Isuzu to make this happen, and how absent corporate Isuzu has been from that relationship in the past few years.

Randii

Isuzu drivers were willing to pay a premium for product, since the applications were so limited.

This is true. Tera should have realized that the first few orders were going to be the peak point of sales; i.e. people who could afford the price and had been waiting for product. Initial price could have been $50-75 higher and not really affected sales. After that, not too much going on except maybe Christmas and Tax Refund time; drop the price to it's current ("sale!") to attract sales while borderline customers think they're getting a deal. simple economics

Well I hate to hear that <img src="/forums/images/graemlins/frown.gif" alt="" /> Bad news for the Isuzu off-road community in general......... but on a more selfish note, specifically bad news for myself. I already have the Tera Lows (Love'em!), but I only have 5.38's for the rear 12bolt (uninstalled). Don't have them for the front yet, and have absolutely no way of paying for a set at the moment. I hope the supply isn't depleted by the time I can rake money together. The rear set is of no use to me without a matching front, and it'd be about impossible to sell them if others cannot get front gears either. I guess if there are no front gears left when the time comes, that is just an omen to start the SAS <img src="/forums/images/graemlins/notooth.gif" alt="" />

Post deleted by ckimbrough18

Randii... this is the root of the problem i think...
"...and how absent corporate Isuzu has been from that relationship in the past few years...."

A divorced second xfer case is a better option than a $800+ set of gears. might even be cheaper in long run even if you factor in the costs of new drive shafts.

Are we talking about the same thing? did you order the R&P gears for $399 or the tcase gears??? the $800 we are talking about is tcase gears. I find it hard to believe anyone could let them go for that cheap... thats even under the initial offer, directly from tera themselves ($500).

-Rob

These are Transfer Case Gears....

This is not a case of supply and demand, as most people tradionally see it. In the loosest sense of the word, it is a monopoly(but without the negative things that go with being a monopoly). They have a product. The have costs they need to recover and they can charge whatever they want to. There is no competition and there are no substitutes. As Rob said, the price of the gear set is comparable with other low gear sets. But even that is a bad comparison, because the price of Toyota gears has very little affect or bearing on the cost of Isuzu gears (both production and retail costs).

Just because someone thinks the price is too high, does not mean it is. There is a vast difference between "Willing to Pay" and "Ability to Pay". If Ferrari made their production decisions based on the number of people "willing" to buy one of their cars, they would have gone under a long time ago. It is all about those consumers who are "able" to pony up the cash. The rest are just noise.

Sadly, I think some of the lack of interest is a result of the downturned economy and the legacy status of the Isuzu product line. Isuzu is dead. There will be no more new Isuzus and in 10 years, there will be a few people like those 1st gen owners now, who are wheeling late 2nd gen rigs. But there will not be a new crop of current model owners to pull the market forward.

The price on the Tera gears was and has been very fair. The fact that they only have 4 sets left makes me feel very good, actually. Regardless of the outcome, I did not want to see them get stuck with massive amounts of stock. The Isuzu market is not a fluid market. The movement of products is not like that of Toy or Jeep. I am almost positive that they knew it would take time to sell what they had produced. If, during that time, they saw a viable market, I am sure they would have done another run. Same goes for the 5.38's. They were better covered in that deal, but they sill retained some stock. If there had been an inkling of a market, they would have considered it.

Do not see this discontinuation as an abandoment of the Isuzu line. It is, by its nature, but it is just a good financial decison of Tera. Those companies who make bad decisions do not stay around very long and usually are not very good companies when they are in existance. Trust me, if you were in charge, you too would not make another production run either.

Good Luck,
Michael

Gosh....kinda disheartening when you put it all that way <img src="/forums/images/graemlins/baby.gif" alt="" />

<img src="/forums/images/graemlins/shiner.gif" alt="" />

Something is wrong in this picture. 'International' SUVs
has been 'dead' for decades. There is still lots of
aftermarket for the International.

Look around. There are many Isuzus on roads.
Actually Isuzu SUVs are among the most popular ones.

Why aftermarket for Isuzus s*cks ?

Possible reasons:

1. Vendors are not patient enough. When you buy a truck
with 120K miles warranty, you usually wait some time before
making big modifications. I've used my truck more than
2 years and I am still having almost 80K of warranty.
It makes me catious about mods. So, our SUVs (2 gen ones)
need some 'aging'.

2. Isuzu is a 'cheap' brand and people who are buying Isuzus
are usually broken ones, money-wise handicapped ones
or other kind of financial freaks. Well, it is not
completely true, but some sort
of truth is there. When I purchased my Rodeo, it was the
only good truck I could afford that time. For such kind
of poor people, you do not expect to sell $3+K lift kits.
When I see a guy in a 4-door Toyota Tacoma, I believe he has
tons of money to buy a golden traction bar or a platinum
exhaust.

3. Isuzu is neighther very popular among offroad community
nor among race trucks community.

4. Isuzu headquater does not support aftermarket guys much.

Let's see what will go on. May be cheap older 2 gens will
find their way into hands of offroad enthusiasts
eventually, and aftermarket will see the light...

Oleg