Quote:
Originally Posted by Jerry Clayton
Brent
For your ype of operation----you more or less just have to cover the costs of ????? You are putting together parts that someone else has machined????So in reality---you source the parts, have someone else do the block machining, and then assemble the engines in your spare time????
So you can do it cheaper than a shop that has overhead for building, property taxes, insurance, haz mat disposal, machinery costs/maintenance and employee wages,benefits.
What kind of business model is that??? or is it a hobby model???
I seem to remember that the cobra you were building was located several miles from you and that it didn't go very well so you gave up on it???
Best of luck for your parts business ------
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Jerry, with all due respect, there are many well-known builders that are just builders and don't do in-house machining. I can think of several right off the top of my head.
To me, qualifying the customer and picking the parts is one of the biggest keys to putting together a nice engine.
Not understanding what you're referring to about business models. Just because I have less overhead? I still have to pay shop liability insurance, credit card merchant fees, etc. I may not have a payroll, but I have some overhead.
I also don't understand what you're referring to about the Cobra. Losing heart in a project 3-4 years ago doesn't really have much to do with my business and building engines now. Sometimes I'm dense and don't pick up on things, so you may have to explain that one to me.
Bob,
I don't think I know of very many shops that just have engines on the floor waiting to be sold. Maybe Roush....
Most of the shops I know and deal with are on a custom order basis. A customer wants an engine, they have to wait several weeks to have it built.
You're very correct in what you were saying about the crating and freight companies. I have to deal a lot with that now, shipping transmissions, international orders, etc. It is indeed a pain in the hindend.