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I still don't understand why they are pulling the plug on this yet. They already have the R&D invested.


Just an FYI - Tera actually contracts the manufacturing of these parts with gears cutters. I have heard that the R/P gears are made in Italy and the t-case gears are cut by a local gears cutter - second hand info at best.

But whatever the truth is they do not make these one set at a time. The only way to be cost effective is to make a small/medium quantity for each order. I don't know what cost vs retail is but figure they have to order at least 50 sets per order to get a decent price and this would be the low end.

This is a chunk of cash out of pocket NOW that then sits on the shelf for how long? 1 year? 2 years? Say you need to sell half of the order to break even (probably more), that's a long term investment. Wholesale price is much less than retail, so payback cannot be calculated by retail costs.

The products that they are still going to be selling probably turn over at a much higher profit margin because of lower production costs and their payback to break even probably comes much quicker.

Tera is probably afraid that if they invested in another product run they may NEVER sell them. Look at the responses in this tread: " too little gain for the price!", "R&Ps much more expensive than others". Sorry if I mis-quote, I don't feel like going back through the whole thread to be that accurate but this is the impression that have from going through it over the last couple of days.

From a business perspective, Tera has better places to invest their money. We can't blame them for making good business decisions can we?

Steve G

PS Another FYI, Tera did not just decide to make these products in the first place. Each product took at least 50 prepaid, preorders to get produced. Many people on this forum are the ones that put the cash out to turn these products into reality as short term as it may turn out to be.