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Discussion Starter #1
...to a bus manufacturing company Proterra. Feeling screwed yet?

Check out this report:
http://www.bizjournals.com/denver/stories/2010/09/27/daily21.html

I'm summarize, they are selling Proterra 150 drive systems for $627,500 (or $4,183/ea)

I was recently quoted a price of $29,310 for the PowerPhase 150. When I inquire about bulk pricing for their 'lesser' systems, this is what I got back:

[FONT=&quot] PowerPhase 75: [/FONT]
[FONT=&quot]4 systems: $18,809/system[/FONT]
[FONT=&quot]20 systems: $[/FONT][FONT=&quot]16,320[/FONT][FONT=&quot]/system[/FONT]
[FONT=&quot]50 systems: $[/FONT][FONT=&quot]14,724[/FONT][FONT=&quot]/system[/FONT]
[FONT=&quot]100 systems: $[/FONT][FONT=&quot]12,240[/FONT][FONT=&quot]/system[/FONT]

[FONT=&quot]PowerPhase 125: [/FONT]
[FONT=&quot]4 systems: $20,690/system[/FONT]
[FONT=&quot]20 systems: $[/FONT][FONT=&quot]17,680[/FONT][FONT=&quot]/system[/FONT]
[FONT=&quot]50 systems: $[/FONT][FONT=&quot]15,951[/FONT][FONT=&quot]/system[/FONT]
[FONT=&quot]100 systems: $[/FONT][FONT=&quot]13,260[/FONT][FONT=&quot]/system[/FONT]

[FONT=&quot]PowerPhase 145: [/FONT]
[FONT=&quot]4 systems: $22,640/system[/FONT]
[FONT=&quot]20 systems: $[/FONT][FONT=&quot]18,795[/FONT][FONT=&quot]/system[/FONT]
[FONT=&quot]50 systems: $[/FONT][FONT=&quot]16,956[/FONT][FONT=&quot]/system[/FONT]
[FONT=&quot]100 systems: $[/FONT][FONT=&quot]14,096[/FONT][FONT=&quot]/system[/FONT]
I understand a markup for doing single unit sales, but c'mon, this is ridiculous.

I bet we could find 150 converters to pay $4,183 for the PowerPhase150. Whadda ya say?
 

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But that's my whole point, economy of scale not being fairly implemented. Look closer at those numbers I posted!
Proterra only needs minor support and will probably place many recurring orders. If they sold to a group they'd have to support 150 customers with all the headaches and risks that involves.

They are under no obligation to sell you anything.
 

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Discussion Starter #6
Proterra only needs minor support and will probably place many recurring orders. If they sold to a group they'd have to support 150 customers with all the headaches and risks that involves.

They are under no obligation to sell you anything.
You're right peggus, businesses can do anything they want. In fact, businesses screw people all the time. That doesn't mean I like it or that I agree with it.

Like I stated before, I understand that they would charge more for single unit sales, but to charge $25,000 for tech support?!?!
 

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10k$ according to your numbers, comparing 100units to 150 units though, extrapolating your numbers to 150 units give ~8k$ difference.

That would work out to 40hours of my time, using my employers cost structure, I suspect UQM is not that different. They don't have the support organization to deal with individuals because that's not who their customers are, so engineers like me end up doing a lot of the support.

This doesn't even factor in the cost of the added risk they have to deal with. A few disgruntled individuals can really drag your name through the mud.

It doesn't seem to me like they are screwing you. If you set yourself up as a distributor, get yourself trained on their product and promise to take on the individual customer support, I bet you'll be able to get a better price. Then, people will accuse you of screwing them because you'll have to charge for all of the above plus profit, to stay afloat.
 

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Discussion Starter #8
peggus,

The pricing was $29k for individual conversion price, which is where I got the $25k support cost number. I don't have bulk pricing for the PP150. But you could extrapolate an estimate based on the numbers above.

With adequate documentation, many inquiries could be dealt with. Also, it doesn't make sense to pay customer support the same salary as an engineer. And that could easily be overcome with proper training.

As far as disgruntled individuals, I would hope good customer support would minimize those. They're always a few people who feel screwed no matter what.
 

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I agree... $25K for support and insurance (since they need to cover insurance for non OEM sales) is ridiculous. I do understand what they're trying to convey - which is that they don't want to sell you anything at all unless you're OEM - but there's honestly no reason for that kind of mark up. Their PP200 unit looks mighty fine to me, but I'm not going to spend $34,000 on a motor/controller like theirs. That's more than a Brusa setup.

I have no doubt that if they don't get more deals with OEMs they'll need to put up or close down. But I think if they're selling these units for $5k/ea to the OEMs, they'll have no problem staying in business.

It's just unfortunate that they're not passionate about EVs enough to care about the DIY guys.
 

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I work for a company very similar to UQM, I've seen the quotes go out, several hundred dollars quoted for a little $25 circuit board, and I've dealt with the customer support. I'm just sharing my perspective here.

UQM used to sell to individuals in their early and more hungry days. They no longer have to deal with that headache, which, is why they're giving you the "go away" price.

You can't compare the single quantity price to the 150 unit price. The economy of scale to manufacture a single unit versus 150 is radically different.

Anyway, I'm looking forward to seeing your EV on the roads of LA in the not to distant future.
 

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Have you checked out this one yet?
http://www.rinehartmotion.com/products.html

I haven't asked them for pricing yet.
hey, i contacted them a while ago and asked for price on their 100kw inverter...I have to say their prices were quite steep...they quoted $12k, but also said that the prices should be coming down in the next couple of months although I dont believe they will go low enough for the common diyer
 

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Hey Crash,

Have you checked out this one yet?
http://www.rinehartmotion.com/products.html

I haven't asked them for pricing yet.
Interesting. What motors do they work for? Do they have their own motors? That's some very high amper ratings including the high voltage systems. I can imagine controllers like these pushing well over 1200Lbs/tq.

hey, i contacted them a while ago and asked for price on their 100kw inverter...I have to say their prices were quite steep...they quoted $12k, but also said that the prices should be coming down in the next couple of months although I dont believe they will go low enough for the common diyer
Well, That may not be that bad considering UQM's prices. But yeah, still steep.
 

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You can't compare the single quantity price to the 150 unit price. The economy of scale to manufacture a single unit versus 150 is radically different.
That doesn't make sense. They already have economies of scale operating when they build the order for Proterra, it actually costs them even less per unit if they make a few more than that order.
 

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The business journal article erroniously stated that UQM sold '150 PowerPhase systems' to Proterra, when it should have read 'PowerPhase 150 systems'. The quantity sold to Proterra has not been disclosed.
 
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