We're talking about 50% more engine here though, larger block, larger displacement, larger crank, 2 more pistons & cylinders, larger valvetrain, stronger engine mounts, further EPA testing for multiple engines, additional crash tests required for different engines in cars, upgraded transmission to hold the extra power, cost to create a new ECM/TCM tune for engine/trani combo it's certainly different than the ATS or camaro V6.
By the time you factor all of this in, the margins are massively lower.
I don't know what you manufacture but those sound like cheap or small parts. I work in a CNC shop and sure material cost can range quite drastically very easily but a lot of people do not see or think about overhead costs. CNC machines can cost millions depending on spec and size unless you buy old used ones, you have engineering costs, labor costs, insurance costs, employees mistakes, tooling, consumables, accounting, setup time, maintenance, materials and anything else I may be forgetting to mention. By the time you add in all your operational costs, bills and material cost you now need to add in your own profit margin. Your total overall cost to make a part in North America is quite high.
For a part to cost .88 could be made of brass which is extremely cheap, fairly small in size and not calculating the above mentioned. The overhead costs are why people are moving manufacturing to countries like China where you can cut that overhead in half and seriously increase margins even after the logistic costs of overseas shipping.
There are some jobs we take on for our larger customers we potentially lose money or cut even on but do it because other jobs we do for them bring in great money. We often take these hits to maintain our relationships with our partners and balance out the loss with the margins from higher value jobs.
This list is the best way to figure out the cost to do a job. Consider all the factors that must be calculated to see the true cost of a job:
Labor costed to the job based on the actual employee hourly rate
Labor overhead (fringe benefits, vacation, other employer paid benefits and taxes) applied to the job based on direct labor hours
Manufacturing overhead applied (by work center) based on the cost of running machines in that work center
Selling/marketing, engineering, General, and Administrative overhead (all the other costs of doing business) applied proportionally to each job, either based on direct labor hour or another appropriate allocation method
Material and outside service costs such as heat treating, plating, anodizing, etc. applied to the job based on actual cost (rather than standard or average) to correctly analyze the effect of the rising cost of material or the actual cost of the service performed.
Sorry for the long post but I see how parts prices get calculated and there's no way they're getting a 97% profit margin. For those who don't know how to calculate profit margin (Sale price $30 - Cost 0.88 = 29.12 then divide profit by sale price 29.12 ÷ 30.00 = 0.9706 then to turn into percentage times by 100 which equal 97.06%) GM gets 6.76% profit margin
https://ycharts.com/companies/GM/profit_margin
If GM's Profit margin is 6.76% that means that's the percentage of that $1095 for the engine they take home after all costs have added in. Which is not too much money at all honestly, correct me if i'm wrong but that's around $75 bucks. Ever wonder why Manufacturers are going to mexico or china? Look at the profit margins, they're sad and keep going lower decade after decade.