lancelot link wrote:
Thankyou ....I don't think the Formosa will reach the same sales figures as it's cousin did ..price may well be prohibitive for some ..we gave the S*mmio's away ...I cannot afford to make that mistake again .
They are a different build also ..No harder to build , easier in some ways ..no internal lining issues , less time in the painting dept. etc....but a few more modifications that may put some off ..
Part of me doesn't want them to sell in large numbers ...I am having an internal battle with myself on that one ...Sound business sense would suggest that as many units as possible go out the door - certainly what my laminator and frame guys are hoping !! And from a financial standpoint , thats good for me ..I do need to start seeing a return , its certainly taken every spare cent to get this off the ground in 6 months ...... but a small part of me would like to sell limited units , even virtually none and spend my time building a few cars a year to sell as turnkeys .....the exclusivity would maintain a higher price - maybe ...
Its immaterial right now as I can't afford to not sell some kit packages ......
- My apologies, I meant to reply to this when you first posted it, but I got distracted.
I really think the price of the kit itself is a red herring for most builders.
As it turns out, you are one of the few people who has managed to get any "budget" Sammio builds on the road.
So I think the budget market is actually quite a small percentage to worry about.
Instead, most builders follow the example set by the
Three Musketeers.
Where there is often a full 'nut & bolt' restoration of both the original rolling chassis and engine.
Then you have other builders, like
Christendmc, Swifty, Oxford, etc. who take fabrication work to another level.
For me at least, the key to a good kit is one where you can pick your level of detail/expense and just get on with it.
So I really hope your Formosa 120 GR will actually turn out to be miles easier to build than any of its forefathers.
Fundamentally, if the body work fits as good as it looks, you should be on to a winner.
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Even ignoring your short term cash requirement, I think the "turnkey only" business model would be is a tricky one to pull off.
As the Formosa is not sufficiently different to really stand out against the alternative options:
- The old Sammio range and the new Sammio Alpha
- Tribute's A352 and the Miglia Speedster
- Even the MEV Replica is another 1950s era model
I'm sure the high prices the DNA 250 replicas are getting has a lot to do with the "Ferris Bueller" effect.
Having said that, Nubodi clearly have a kit building business model that works.
( Even if Richard was always complaining about earning Burger King wages.
)
So there is definitely a market for people who want the kit, but can't build it themselves.
But the price you charge must cover both the hours you work and a fair share of your other business overheads.
( Fixing the price for work before realising just how many hours are required is the road to ruin. )
The real key is to under promise and over deliver, not the other way around, as most people prefer the truth.
( Especially those who will have no idea of the amount of work that goes into building a high end finish. )
Even if you love these cars and building/modifying them, this has to be run as a proper business first.
Note:
I've just paid an hourly rate to get my engine fixed that far exceeds what I actually earn in an hour.
But I was happy to pay it to get a professional job done that is also way beyond my skills/facilities.
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Anyway, that is more than enough from me and I hope the Stoneleigh went well for you.
Good luck, Paul.
