QC
Supreme Mariner
- Joined
- Mar 22, 2005
- Messages
- 22,783
Re: 2-strokes legal indefinitely?
My guess is that they see that market served by their existing 4 strokes and that there is not a lot of opportunity to take sales away from anybody else and there is no growth to capture from either without severe discounting, so why do it? The only reason then might be to hurt competition which is another possible reason if it doesn't cost too much . . .
The answer is almost always development cost/number of incremental unit sales. If you (marketing boy wonder) can walk into the right office, at fill in the blank company and convince them of the validity of your forecast, and confirm the development costs and show a return on the investment that equals or exceeds the minimum threshold established by fill in the blank company for capital expenditures, then they will do it. There are other factors like Merc would probably say no to a new lawn mower plan as it is outside their core business, but all companies pretty much operate this way, small and large. Those that don't either get lucky or go broke.If Evinrude can get their E-TEC DFI two strokes down to 25 HP,then why can't Mercury do that with the Optimax? That may be another whole topic separate from this one,but think about it. Both brands are 3-star EPA rated on their DFI two strokes,so why not?
My guess is that they see that market served by their existing 4 strokes and that there is not a lot of opportunity to take sales away from anybody else and there is no growth to capture from either without severe discounting, so why do it? The only reason then might be to hurt competition which is another possible reason if it doesn't cost too much . . .