1)Mugen is a "premium" brand in Japan, so they have higher prices. Our retail pricing is a function of Mugen's list price - that means what we pay for the products wholesale is % discount off of their list price. The discount really isn't that much, so there is no room to offer lower than list pricing - it just wouldn't make business sense. BUT.... one of the reasons that Mugen charges a lot for their products is that they puit a ton of R&D into the performance and aero parts so that they actually provide a benefit, fit well, and are high quality. They need to recoupe these costs somehow and it is reflected in their list prices.
2)We have to buy Mugen products in Japanese currency - the Japanese Yen. The amount of Yen we can buy with a single dollar changes every minute of everyday. That means the price of the goods for us varies from month to month depending on the exhange rate. We can't constantly adjust our prices up and down - customers wouldn't like that and we just don't have the manpower to do that (think about having to adjust the price on every Mugen product every month on your website and in your showroom). To avoid the risk of losing money in the process we have built into the US price a little wiggle room - in business you would say we are "mitigating foreign currency exchange risk". This causes the price to be a little higher.
3)The big one that drives pricing is transportation costs. Our price on Mugen products does not include freight costs to get the products here to the US, through customs, and to our dock. We have to pay for that and that directly impacts our margin on the products. Shipping costs on some of the items can be as much as 15% of the cost of the product.
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