Originally Posted by
slotracer577
Does it really cost any more to add the extra features? Probably not. with a brushless ESC you have to have a processor to make it all work. The only difference is the overhead (people) to do the extra programming work to add the timing and interface. To save cost you either have to reduce component costs (cheaper or fewer components) or reduce the cost to assemble the product or reduce your overhead. I would guess that Tekin uses the latest assembly methods, so there is not any savings to be had there. That leaves lower component cost or lower overhead to reach the price point. So a sub $100 esc is probably either a loss leader or a lower quality unit.
Price and cost are not always related. If you only price your goods as a mark up of your cost, that would make you a poor businessman. The price is always what the market will bear. If you can make money with that then great. If you can make a lot of money with that, even better. Many things cost far less than what they actually sell for. I am sure Tekin is making a tidy profit on their products because they are using very efficient manufacturing methods. So why should they offer a lower price product with maybe less profit? Two things: volume and market share. Its like saying why should Toyota bother making Scions when they can make more money selling Lexus. The market for sub $100 esc is there. Why else would Novak, Speed Passion, Hobbywing and etc be in it if there was no money to be made?
This is the problem with onroad. Too many people come off that you need to have the very best to par-take in this hobby leaving people the idea that a lesser budget for lesser equipement would be not worthy or worthwhile.