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I've witnessed some hard negotiating in the car industry about the price of a cable lug for a 6-figure luxury car. The car maker wanted to bring down the price
by suction 4y ago
I've witnessed some hard negotiating in the car industry about the price of a cable lug for a 6-figure luxury car. The car maker wanted to bring down the price for one lug from 0.05 Euro to 0.03 Euro at a order volume of about 100.000 pieces.
This kept about 50 people (on both sides of the deal) busy for 3 months: Engineers, CAD-Ops, Buyers, Sales, Project Managers...
It was obvious that the amount of extra-work to see if the price could be lowered was a multiple of the savings of the car maker. Yet nobody complained.
- gambiting 4y agoWell, maybe it wasn't the saving on this model, but if the design persists then the savings add up over several generations, right?