"Bronco Tax" Analysis

[Razorbak86]

"Bronco Tax" Analysis - Is it real? If so, who is charging it, and how much is the premium?

I have read several allegations on the forum by members claiming that some US aftermarket vendors are slapping price premiums onto Bronco products, because they are quick to market, face little competition, and the market will bear it. This so-called price premium is often referred to as a "Bronco Tax".

I tend to disagree with the phrase "slapping price premiums onto Bronco products," because it implies that it was done without careful consideration of direct costs, direct materials, overhead costs, and profit. All companies, regardless of location, want to cover their real labor and overhead costs when pricing products, and it is a fact that labor costs in some countries like China are lower than in the US, and many overhead costs (e.g., healthcare, environmental, regulatory) are also lower in countries like China than in the US.

Nevertheless, the subject of the “Bronco Tax” piqued my curiousity, so I tried to look for an example to test this hypothesis myself.

Just for convenience, since I am already familiar with @JcrOffroad's products, having purchased several myself, I decided to do some comparisons between what they make and sell for Jeeps and what they make and sell for Broncos.

Below are my findings...

1) Aftermarket folding tables

Jeep

JcrOffroad makes a Fold-Down Table for its JCR Adventure Carrier (15.5" x 14.25" = 221 sq. in.), which has only one latch mechanism (one corner only), and does not have an additional MOLLE grid panel on the bottom, making it single-purpose (table only). $229

Bronco

The Bronco Tailgate Table is clearly wider and a little shorter (27" x 11.75" = 311 sq. in.), but contains 2 latches (one in each top corner) and has an additional MOLLE grid panel on the bottom, making it dual-purpose (table + storage). $299

Comparison

The Bronco Tailgate Table is $70 more expensive (31%) than the Fold-Down Table for the Adventure Carrier, and it provides an additional latch, 41% more steel surface on the table, plus an additional MOLLE grid panel below the table (dual-purpose).

Verdict

No apparent "Bronco Tax". Possibly a bargain, with the added feature-set.

2) Aftermarket console MOLLE panels

Jeep

The JK Center Console MOLLE panel | Jeep Wrangler (07-18) has 13 MOLLE grid attachment holes + holster clip (limited by available space). $98.10 (on sale)

Bronco

The Bronco Center Console MOLLE panel | 6th Gen (2021+) has 27 MOLLE grid attachment holes + holster clip (limited by available space). $98.10 (on sale)

Comparison

The Bronco panel is almost 2x larger, but the exact same price.

Verdict

No apparent "Bronco Tax". Actually a bargain, at 2x the size for the exact same price.

3) Aftermarket prerunner hoops for front bumpers

OK, this one is a little more complicated, because the offerings for the two brands are quite a bit different, so let’s start with the Bronco first.

Bronco

The Bronco Prerunner Bolt-On Hoop | 6th Gen (2021+) Steel Bumper has 1 main hoop (tall/narrow) plus 2 side tubes (short/wide), with 4 brackets, 6 welds, and 4 sets of fasteners. $499

Jeep

The Steel Bumper Prerunner Tube | JL Wrangler JT Gladiator is quite a bit simpler, with 1 hoop (tall & narrow), 0 side tubes, 2 brackets, 2 welds, and 2 sets of fasteners. It is also quite a bit cheaper. $219

To account for the difference in designs, you would probably need to factor in some additional components, which JcrOffroad sells as DIY add-ons.

The next photo shows the DIY Jeep Bumper Hoop | 31x14, which is roughly equivalent to the tall/narrow hoop on the Bronco Prerunner, but is bare steel only, with no notches, brackets, welding, powder-coating, or fasteners. $159

The next photo shows the DIY Jeep Bumper Hoop | Prerunner Side Tubes, which are roughly equivalent to the Bronco's Prerunner side tubes, but are bare steel only, with no notches, brackets, welding, powder-coating, or fasteners. $129

Comparison

If you take the two bare steel components above ($159 +$129 = $288) and add 2x the difference between the finished hoop, with 2 welds, 2 brackets, and powder-coating (($219 - $159) x 2 = $120), the adjusted total would be $408... only $91 lower than the Bronco Prerunner, which has 2 additional welds, more notching, and arguably more steel, due to the wider front bumper of the Bronco versus most Jeep models (albeit not quantified in this analysis).

Verdict

No apparent Bronco tax, after adjustments, but you have to do a little math to come to that conclusion, given the differences between the two products.

4) Aftermarket half-doors and tube doors (2-door models)

Jeep

The JK Half Doors | Front | Crusader Trail Doors | Jeep Wrangler (07-18) include steel skins, hinges, and latches, but no tube frame. $1,049

Bronco

The Bronco Tube Doors | 6th Gen (2021+) for 2-door models include tube doors, hinges, and latches, but no steel skins. $899

Ford Performance

The Ford Performance M-19008-BTD2 Tube Doors (2021-2022 Ford Bronco 2-Door) include tube doors, latches, and hinges, plus a handle-style addition in the middle of the door, but no steel skins. $1,599

Comparison

I'm not sure about the cost difference between steel plates and tubes, nor the amount of material contained in each, but they all appear to be relatively comparable in form and function, if not exact size and weight.

Verdict

The JcrOffroad Bronco tube doors are actually cheaper than the JcrOffroad JK Half Doors (front only), despite being a little wider. So there is no apparent "Bronco Tax" here, and the Bronco doors are arguably a better bargain for similar functionality and a lower price.

One could argue, however, that there is a "Ford Performance Tax", given the much higher price of the Ford Performance tube doors than the JcrOffroad tube doors ($550 - $700 higher price).

Summary

The results of my analysis across several different product choices at JcrOffroad is quite interesting. Despite generic allegations of a "Bronco Tax" being charged across multiple aftermarket products and vendors, my analysis seems to confirm to me that JcrOffroad is not charging a "Bronco Tax" in comparison to the pricing of some of its comparable Jeep products, which have been on the market for several years, even though they have been quick to market on some of these products, and have faced little competition to date post-Bronco release.

Follow-Up

What do you think about this analysis? Do you agree or disagree, and why?

I would love to see other members perform this type of analysis on additional aftermarket products that they feel include a "Bronco Tax" premium.

Feel free to step up, grab the mike, and determine if this so-called "Bronco Tax" is real. If it's real, tell us who is charging it, and how much is the premium?

Sponsored

 

[kodiakisland]

Crap man, once I got my Bronco I thought I'd have my money for nothing and my chicks for free.

 

[gryphon1231]

"Bronco Tax" Analysis - Is it real? If so, who is charging it, and how much is the premium?

I have read several allegations on the forum by members claiming that some US aftermarket vendors are slapping price premiums onto Bronco products, because they are quick to market, face little competition, and the market will bear it. This so-called price premium is often referred to as a "Bronco Tax".

I tend to disagree with the phrase "slapping price premiums onto Bronco products," because it implies that it was done without careful consideration of direct costs, overhead costs, and profit. All companies, regardless of location, want to cover their real labor and overhead costs when pricing products, and it is a fact that labor costs in some countries like China are lower than in the US, and many overhead costs (e.g., healthcare, environmental, regulatory) are also lower in China than in the US.

Nevertheless, the whole subject of the so-called “Bronco Tax” got me curious, so I tried to look for an example to test this hypothesis myself.

Just for convenience, since I am already familiar with @JcrOffroad's products, having already purchased several myself, I decided to do some comparisons between what they make and sell for Jeeps and what they make and sell for Broncos.

Below are my findings...

1) Aftermarket folding tables

Jeep

JcrOffroad makes a Fold-Down Table for its JCR Adventure Carrier (15.5" x 14.25" = 221 sq. in.), which has only one latch mechanism (one corner only), and does not have a MOLLE grid on the bottom, making it single-purpose (table only). $229

Bronco

The Bronco Tailgate Table is clearly wider and a little shorter (27" x 11.75" = 311 sq. in.), but has a MOLLE grid on the bottom, making it dual-purpose (table + storage). $299

Comparison

The Bronco Tailgate Table is $70 more expensive (31%) than the Fold-Down Table for the Adventure Carrier, but contains 41% more steel surface on the table, plus a MOLLE grid panel below the table, making it dual-purpose.

Verdict

No apparent "Bronco Tax". Possibly a bargain, with the added feature-set.

2) Aftermarket console MOLLE panels

Jeep

The JK Center Console MOLLE panel | Jeep Wrangler (07-18) has 13 MOLLE grid attachment holes + holster clip; limited by available space). $98.10 (on sale)

Bronco

The Bronco Center Console MOLLE panel | 6th Gen (2021+) has 27 MOLLE grid attachment holes + holster clip; limited by available space). $98.10 (on sale)

Comparison

The Bronco panel is almost 2x larger, but the exact same price.

Verdict

No apparent "Bronco Tax". Actually a bargain, at 2x the size for the exact same price.

3) Prerunner hoop bumpers

OK, this one is a little more complicated, because the offerings for the two brands are quite a bit different, so let’s start with the Bronco first.

Bronco

The Bronco Prerunner Bolt-On Hoop | 6th Gen (2021+) Steel Bumper has 1 main hoop (tall/narrow) plus 2 side tubes (short/wide), with 4 brackets, 6 welds, and 4 sets of fasteners. $499

Jeep

The Steel Bumper Prerunner Rube | JL Wrangler JT Gladiator is quite a bit simpler, with 1 hoop (tall & narrow), 0 side tubes, 2 brackets, 2 welds, and 2 sets of fasteners. It is also quite a bit cheaper. $219

To account for the difference in designs, you would probably need to factor in some additional components, which JcrOffroad sells as DIY add-ons.

The next photo shows the DIY Jeep Bumper Hoop | 31x14, which is roughly equivalent to the tall/narrow hoop on the Bronco Prerunner, but is bare steel only, with no notches, brackets, welding, powder-coating, or fasteners. $159

The next photo shows the DIY Jeep Bumper Hoop | Prerunner Side Tubes, which are roughly equivalent to the Bronco's Prerunner side tubes, but are bare steel only, with no notches, brackets, welding, powder-coating, or fasteners. $129

Comparison

If you take the two bare steel components above ($159 +$129 = $288) and add 2x the difference between the finished hoop, with 2 welds, 2 brackets, and powder-coating (($219 - $159) x 2 = $120), the adjusted total would be $408... only $91 lower than the Bronco Prerunner, which has 2 additional welds, more notching, and arguably more steel, due to the wider front bumper of the Bronco versus most Jeep models (albeit not quantified in this analysis).

Verdict

No apparent Bronco tax, after adjustments, but you have to do a little math to come to that conclusion, given the differences between the two products.

4) Aftermarket doors (2-door models)

Jeep

The JK Half Doors | Front | Crusader Trail Doors | Jeep Wrangler (07-18) include steel skins, hinges, and latches, but no tube frame. $1,049

Bronco

The Bronco Tube Doors | 6th Gen (2021+) for 2-door models include tube doors, hinges, and latches, but no steel skins. $899

Ford Performance

The Ford Performance M-19008-BTD2 Tube Doors (2021-2022 Ford Bronco 2-Door) include tube doors, latches, and hinges, plus a handle-style addition in the middle of the door, but no steel skins. $1,599

Comparison

I'm not sure about the cost difference between steel plates and tubes, nor the amount of material contained in each, but they all appear to be relatively comparable in form and function, if not exact size and weight.

Verdict

The JcrOffroad Bronco tube doors are actually cheaper than the JcrOffroad JK Half Doors (front only), despite being a little wider. Nevertheless, there is no apparent "Bronco Tax" here, and the Bronco doors are arguably a better bargain for similar functionality and a lower price.

One could argue, however, that there is a "Ford Performance Tax", given the much higher price of the Ford Performance tube doors than the JcrOffroad tube doors ($550 - $700 higher price).

Summary

The results of my analysis across several different product choices at JcrOffroad is quite interesting. Despite generic allegations of a "Bronco Tax" being charged across multiple aftermarket products and vendors, my analysis seems to confirm to me that JcrOffroad is not charging a "Bronco Tax", even though they have been quick to market on some of these products, and have faced little competition to date post-Bronco release, in comparison to the pricing of some of its comparable Jeep products, which have been on the market for several years.

Follow-Up

What do you guys/gals think about my analysis? Do you agree or disagree, and why?

I would love to see other members perform this exercise on additional aftermarket products that members feel include a "Bronco Tax" premium.

Feel free to step up, grab the mike, and determine if this so-called "Bronco Tax" is real. If it's real, tell us who is charging it and how much is the premium?

Way too much overthinking.

 

[Toccoa]

They say the only thing certain in life is long waits and Bronco taxes.

 

[JcrOffroad]

With our other brand, Victory4x4, Lexus people always say they have a ‘Lexus tax’. Most of the Lexus stuff costs a bit more overall, but usually because it has addition features or components to work with/around vs say the 4runner. The bronco is in this same category overall vs the Jeep.

When we do pricing, it’s all based off a spreadsheet. A product has to fit into a certain profit percentage range. If it does not, it’s wasted time to make it. Most of our old Jeep product pricing has had to increase. Thanks to the good ole massive increases in labor and materials the last 10 months. A lot of the aftermarket Jeep companies are just now doing the same.

Good pricing is subjective. One person may think the price is affordable, while another may think it’s overpriced.

This is nothing new to hear this debate. For us, our price is our price. We pay compatible wages, manufacture everything in Portage Michigan. We do not outsource any of our products. Every person that works at JCR is just trying to make a decent living making niche parts as enthusiasts, for enthusiasts.

Anyways…Happy Easter! He has Risen!

 

[Hot Pepper Diamond]

If this was only the case with an aftermarket hard top…

 

[pony2bronco]

R&D for a new vehicle costs time+monday, gotta make that back somehow. Also right now many products are "firsts"; there's no competition. Eventually, with more competition prices will get lower, therefore you could argue there is a bronco "tax" right now, but needing something now and not waiting means you're willing to pay it.

 

[Bigkansas]

With our other brand, Victory4x4, Lexus people always say they have a ‘Lexus tax’. Most of the Lexus stuff costs a bit more overall, but usually because it has addition features or components to work with/around vs say the 4runner. The bronco is in this same category overall vs the Jeep.

When we do pricing, it’s all based off a spreadsheet. A product has to fit into a certain profit percentage range. If it does not, it’s wasted time to make it. Most of our old Jeep product pricing has had to increase. Thanks to the good ole massive increases in labor and materials the last 10 months. A lot of the aftermarket Jeep companies are just now doing the same.

Good pricing is subjective. One person may think the price is affordable, while another may think it’s overpriced.

This is nothing new to hear this debate. For us, our price is our price. We pay compatible wages, manufacture everything in Portage Michigan. We do not outsource any of our products. Every person that works at JCR is just trying to make a decent living making niche parts as enthusiasts, for enthusiasts.

Anyways…Happy Easter! He has Risen!

He has risen indeed!

 

[BroncoAZ]

With our other brand, Victory4x4, Lexus people always say they have a ‘Lexus tax’. Most of the Lexus stuff costs a bit more overall, but usually because it has addition features or components to work with/around vs say the 4runner. The bronco is in this same category overall vs the Jeep.

When we do pricing, it’s all based off a spreadsheet. A product has to fit into a certain profit percentage range. If it does not, it’s wasted time to make it. Most of our old Jeep product pricing has had to increase. Thanks to the good ole massive increases in labor and materials the last 10 months. A lot of the aftermarket Jeep companies are just now doing the same.

Good pricing is subjective. One person may think the price is affordable, while another may think it’s overpriced.

This is nothing new to hear this debate. For us, our price is our price. We pay compatible wages, manufacture everything in Portage Michigan. We do not outsource any of our products. Every person that works at JCR is just trying to make a decent living making niche parts as enthusiasts, for enthusiasts.

Anyways…Happy Easter! He has Risen!

Another major factor is the potential market size for each product. There are a gazillion Jeeps on the road and people love to modify them. There are less Broncos on the road to be modified, and even fewer Lexus owners looking to mod them. If a company has to put in the R&D, build cad programming, build jigs, etc. for building 100’s of something the finished product has to cost more than something else they will sell 1000’s of.

 

[Nellman]

I believe this analysis is flawed in that you should have done the foldable table from multiple vendors instead of different parts from one vendor with a second vendor for an item. Some vendors are going to be better then others.

I don't believe it is a Bronco Tax. Like most things that people say there is a special tax on, if you actually look at why the difference exists you will see why the price is different.

Being first and no competition is not a tax that is the manufacturer setting a price. Once competition is introduced that price usually comes down. If the price is so low that no one else can make money off the item, you want get as much, if any competition.

 

[RoLyMa27]

"Bronco Tax" Analysis - Is it real? If so, who is charging it, and how much is the premium?

I have read several allegations on the forum by members claiming that some US aftermarket vendors are slapping price premiums onto Bronco products, because they are quick to market, face little competition, and the market will bear it. This so-called price premium is often referred to as a "Bronco Tax".

I tend to disagree with the phrase "slapping price premiums onto Bronco products," because it implies that it was done without careful consideration of direct costs, direct materials, overhead costs, and profit. All companies, regardless of location, want to cover their real labor and overhead costs when pricing products, and it is a fact that labor costs in some countries like China are lower than in the US, and many overhead costs (e.g., healthcare, environmental, regulatory) are also lower in countries like China than in the US.

Nevertheless, the subject of the “Bronco Tax” piqued my curiousity, so I tried to look for an example to test this hypothesis myself.

Just for convenience, since I am already familiar with @JcrOffroad's products, having purchased several myself, I decided to do some comparisons between what they make and sell for Jeeps and what they make and sell for Broncos.

Below are my findings...

1) Aftermarket folding tables

Jeep

JcrOffroad makes a Fold-Down Table for its JCR Adventure Carrier (15.5" x 14.25" = 221 sq. in.), which has only one latch mechanism (one corner only), and does not have an additional MOLLE grid panel on the bottom, making it single-purpose (table only). $229

Bronco

The Bronco Tailgate Table is clearly wider and a little shorter (27" x 11.75" = 311 sq. in.), but contains 2 latches (one in each top corner) and has an additional MOLLE grid panel on the bottom, making it dual-purpose (table + storage). $299

Comparison

The Bronco Tailgate Table is $70 more expensive (31%) than the Fold-Down Table for the Adventure Carrier, and it provides an additional latch, 41% more steel surface on the table, plus an additional MOLLE grid panel below the table (dual-purpose).

Verdict

No apparent "Bronco Tax". Possibly a bargain, with the added feature-set.

2) Aftermarket console MOLLE panels

Jeep

The JK Center Console MOLLE panel | Jeep Wrangler (07-18) has 13 MOLLE grid attachment holes + holster clip (limited by available space). $98.10 (on sale)

Bronco

The Bronco Center Console MOLLE panel | 6th Gen (2021+) has 27 MOLLE grid attachment holes + holster clip (limited by available space). $98.10 (on sale)

Comparison

The Bronco panel is almost 2x larger, but the exact same price.

Verdict

No apparent "Bronco Tax". Actually a bargain, at 2x the size for the exact same price.

3) Aftermarket prerunner hoops for front bumpers

OK, this one is a little more complicated, because the offerings for the two brands are quite a bit different, so let’s start with the Bronco first.

Bronco

The Bronco Prerunner Bolt-On Hoop | 6th Gen (2021+) Steel Bumper has 1 main hoop (tall/narrow) plus 2 side tubes (short/wide), with 4 brackets, 6 welds, and 4 sets of fasteners. $499

Jeep

The Steel Bumper Prerunner Tube | JL Wrangler JT Gladiator is quite a bit simpler, with 1 hoop (tall & narrow), 0 side tubes, 2 brackets, 2 welds, and 2 sets of fasteners. It is also quite a bit cheaper. $219

To account for the difference in designs, you would probably need to factor in some additional components, which JcrOffroad sells as DIY add-ons.

The next photo shows the DIY Jeep Bumper Hoop | 31x14, which is roughly equivalent to the tall/narrow hoop on the Bronco Prerunner, but is bare steel only, with no notches, brackets, welding, powder-coating, or fasteners. $159

The next photo shows the DIY Jeep Bumper Hoop | Prerunner Side Tubes, which are roughly equivalent to the Bronco's Prerunner side tubes, but are bare steel only, with no notches, brackets, welding, powder-coating, or fasteners. $129

Comparison

If you take the two bare steel components above ($159 +$129 = $288) and add 2x the difference between the finished hoop, with 2 welds, 2 brackets, and powder-coating (($219 - $159) x 2 = $120), the adjusted total would be $408... only $91 lower than the Bronco Prerunner, which has 2 additional welds, more notching, and arguably more steel, due to the wider front bumper of the Bronco versus most Jeep models (albeit not quantified in this analysis).

Verdict

No apparent Bronco tax, after adjustments, but you have to do a little math to come to that conclusion, given the differences between the two products.

4) Aftermarket half-doors and tube doors (2-door models)

Jeep

The JK Half Doors | Front | Crusader Trail Doors | Jeep Wrangler (07-18) include steel skins, hinges, and latches, but no tube frame. $1,049

Bronco

The Bronco Tube Doors | 6th Gen (2021+) for 2-door models include tube doors, hinges, and latches, but no steel skins. $899

Ford Performance

The Ford Performance M-19008-BTD2 Tube Doors (2021-2022 Ford Bronco 2-Door) include tube doors, latches, and hinges, plus a handle-style addition in the middle of the door, but no steel skins. $1,599

Comparison

I'm not sure about the cost difference between steel plates and tubes, nor the amount of material contained in each, but they all appear to be relatively comparable in form and function, if not exact size and weight.

Verdict

The JcrOffroad Bronco tube doors are actually cheaper than the JcrOffroad JK Half Doors (front only), despite being a little wider. So there is no apparent "Bronco Tax" here, and the Bronco doors are arguably a better bargain for similar functionality and a lower price.

One could argue, however, that there is a "Ford Performance Tax", given the much higher price of the Ford Performance tube doors than the JcrOffroad tube doors ($550 - $700 higher price).

Summary

The results of my analysis across several different product choices at JcrOffroad is quite interesting. Despite generic allegations of a "Bronco Tax" being charged across multiple aftermarket products and vendors, my analysis seems to confirm to me that JcrOffroad is not charging a "Bronco Tax" in comparison to the pricing of some of its comparable Jeep products, which have been on the market for several years, even though they have been quick to market on some of these products, and have faced little competition to date post-Bronco release.

Follow-Up

What do you think about this analysis? Do you agree or disagree, and why?

I would love to see other members perform this type of analysis on additional aftermarket products that they feel include a "Bronco Tax" premium.

Feel free to step up, grab the mike, and determine if this so-called "Bronco Tax" is real. If it's real, tell us who is charging it, and how much is the premium?

Now to increase the validity of this analysis, randomly select 10 more manufacturers and do it all over again!

 

[Razorbak86]

I believe this analysis is flawed in that you should have done the foldable table from multiple vendors instead of different parts from one vendor with a second vendor for an item. Some vendors are going to be better then others.

Now to increase the validity of this analysis, randomly select 10 more manufacturers and do it all over again!

I surrendered the mic, so the stage is yours.

Feel free to step up and post your own analyses. I look forward to reading them.

 

[Compta38]

If this was only the case with an aftermarket hard top…

came to post this...now show me the $5700 Jeep hard top.

 

[kevin.gt]

Next Venture rear diff skids are comparable between JL and Bronco:
JL $320
Bronco $330

 

[tourproto]

As with anything, first to market can always charge a premium, assuming there is pent-up demand for something.

That "price premium" erodes over time as competition enters the market.

However, over time, a different type of price premium emerges, and that is for a superior product or one that has greater brand awareness (e.g. a genuine Ford product).

It is what it is. As the saying goes, "you can hate politics, you can refuse to play politics, but to be unwilling to admit that politics exist, is foolish". Same applies to a price premium for aftermarket goodies for the Bronco.

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