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Since starting TRIBUTE AUTOMOTIVE back in 2010 I have realised that survival in the kit car business world can be reliant on introducing new ideas and new kit models to the market place on a regular basis to keep customers engaged and interested. To this end we have introduced 10+ models under the TRIBUTE AUTOMOTIVE banner since the launch of the MX250, some proving more popular than others, but all have been a progression to where we are as 2016 begins.
2015 was a good business year for TRIBUTE AUTOMOTIVE, but a difficult one for me personally for various reasons. This has made me take stock of life and work, which everyone needs to do at sometime, and make some changes. The Development of new kits has been slow in 2015, with only the 250 SWB for the Z3 making it to the market place. The development side of the business is where I derive most enjoyment, although the least immediate financial reward. There are many new TRIBUTE AUTOMOTIVE products in the pipeline which will hopefully be received with the customer enthusiasm that previous models have had.
I do not want to go down the well trodden kit car business path of expansion and collapse that so many companies have taken before, so a plan to move forward has taken shape. Some TRIBUTE AUTOMOTIVE kit models are already made under licensed deals from third parties, the MRS200 and imminent DINO for example, with others such as the SAMMIO range and HARDY COUNTY HOT RODS (HCHR) manufactured by us but sold by the mould owners under their own company names. My plan is to licence out some of the existing 100% owned TRIBUTE AUTOMOTIVE moulds/products to other companies hence removing the sales representation, and to varying degrees the manufacture, of the chosen kits. The split of exact models are still in negotiation, but our own HOT ROD (not HCHR) models (1932 3 and 5 window Model B's, 1927 Model T along with 2 additional imminent models) will be going as a package, with builds, to a local firm. There will be a certain amount of "introductory overlap" with website, internet and phone representation whilst product/market place familiarisation takes place. Overflow of lamination and steel fabrication work may also be outsourced. Some changes to existing trade/retail pricing and contracts (verbal and renewable written) may have to occur. All of this will not extend current quoted delivery timescales, it may even improve them.
Once everything is in place there will be more time for kit development, and importantly more time for family and friends.
17 weeks to the Stoneleigh Kit Car Show. Our order book is full for months ahead. Roll on 2016.
Your plan sounds wise, you never have a shortage of good ideas and the results are always great.
I know its a business and we all have to make money but I hope you can keep your love for what you do.
Good luck with however you end up chopping things and as long as you end up enjoying rather than resenting what you end up with then that is all that matters!!
Honestly I dont really understand this statement at all. Not sure if its just me but if I was in your shoes Chris/Dan I would be thinking of employees and expansion, you should never look at old business failures and not wanting to go down the same route. Other kit car businesses are not the same ase yours. Ive never seen a business with so much potential as tribute automotive. It seems a shame.
Honestly I dont really understand this statement at all. Not sure if its just me but if I was in your shoes Chris/Dan I would be thinking of employees and expansion, you should never look at old business failures and not wanting to go down the same route. Other kit car businesses are not the same ase yours. Ive never seen a business with so much potential as tribute automotive. It seems a shame.
Danny, Think one man burger van VS multiple Burger King franchises.....
If the product is good, licensing is a great profitable model with no everyday running headaches/risk apart from having to be able to monitor units sold by licensee (and that is the key to whole thing)
Sounds like the way forward to me Chris good luck in everything you and Dan do in the future , looking forward to the new products .What is the burger van going to be based on ?
Honestly I dont really understand this statement at all. Not sure if its just me but if I was in your shoes Chris/Dan I would be thinking of employees and expansion, you should never look at old business failures and not wanting to go down the same route. Other kit car businesses are not the same ase yours. Ive never seen a business with so much potential as tribute automotive. It seems a shame.
Danny, if you do the maths (on Chris' behalf), if he employed someone at £30k pa cost to employ, he would probably have to sell an extra 60 to 100 kits per year just to break even. All very well in theory, but the market for these kits is pretty limited.
Danny, if you do the maths (on Chris' behalf), if he employed someone at £30k pa cost to employ, he would probably have to sell an extra 60 to 100 kits per year just to break even. All very well in theory, but the market for these kits is pretty limited.
An experienced GRP laminating shop would be able to lay up these body molds up in double quick time. The hard work is already done ie making the molds. Whoever takes it on should be profitable from the word go with the current pricing structure even after licenses are paid.
