I recently bought a 07 s60 at an auction that did not have a key im in San Antonio Tx and the dealer quoted me a price of 550.00. does that seem too high? can anybody point me in the right direction. thank you

 

Sounds about right for a Key Integrated Remote.

 

Guessing the mfg cost of the remote to be ~ $20, sold to Volvo @ 200% markup = $60 then perhaps a one-time cost of $250 for the programmer. Amortizing the programmer over 5 years @ 20 keys/year = $2.50/use. Assuming 10 minutes of "tech" time to set up programmer, insert and retrieve key @ $125/hr = $21 so $550 - ( $60 + $2.50 + $21) = $466.50 - pretty tidy little profit, I'd say!

 

Lots of guessing, assumptions and missing information there.

 

Perhaps so but the guesses and assumptions are based on years of experience in off-shore manufacturing of precision instruments including cost analysis and consideration of overheads, inventory etc. There is nothing mysterious or exotic about burning EEPROMs, RFIDs etc. If there is missing information, it is because manufacturers and dealers (all, not just Volvo) want to cloak this process in a mantle of expensive magic to protect a lucrative revenue stream. A little transparency would help (a good place to start would be an explanation of why putting a "Volvo" label on a generic part like spark plugs, engine oil or ATF increases the cost 5X)

 

Turns out car companies and their dealerships are in business to make money. As are the companies that make the various parts for those car companies.

 

No argument here - 40+ years in the corporate world. For me, the issue is "how much and how." If XYZ motors wants to charge $1000 for a metallic clear coat or $2500 for wheels an inch larger and 2" wider - fine - if I want those things badly enough, I'll pay for them. Putting an eyebrow raising price on a small (easily lost or damaged) tool that is absolutely essential to make any use of very substantial investment with no alternative emergency option crosses the line in my mind.

I am far, far from an "all corporations are evil" activist but I do think that there are times when businesses go beyond being an honest supplier of value for money. This is one such instance.

 

Keys and remotes cost money.
VIDA costs money.
My time costs money.

Is it a lot? Sure. Compared to a car from the 80s with no immobilizer system and virtually no security.

 

ES6T:

Please be assured that I respect your knowledge and experience and value your contributions to this forum. That said, I believe we are "talking past" one another so I shall not comment further except to note that this is kind of issue that influences my buying decisions. This latter point may well be moot since given my age, modest use (~5000 miles/year) and preference for **** and buttons over touch screens, my 2015.5 V60 (50,000 miles, CPO) may well be my last car.