Quote:
Originally Posted by eschaider
I have a lot of respect for your opinions RodKnock, but on this one you are just missing the mark. The seed monies for the business were spent way in advance of the block order placed by the engine builder. There is a conservative $250K in engineering and tooling to make a block from dead scratch.
Once you get done with the sunk investment up front then you have to buy the minimum economic order quantity for the foundry not necessarily you! That number is between 50 and 100 blocks. Finish up the machine work, the freight, import duties (remember you can't get the quality casting in the US anymore) and you are somewhere north of minimally another $350/400K.
So, now you are in the tank for a half million+ for the first 50 to 100 blocks before you get any monies coming in for product.
Patrick is spot on and anyone with a spare half million+ laying around does not seem to be popping up to take advantage of the excellent business opportunity you seem to see, RodKnock.
This block business is fools gold — especially for FE's. We are basically the only guys that want them and we don't like to pay the price for them — not to mention the flake out factor is high.
This kind of a 'hobby' business only looks promising to uninformed people who are on the outside looking in that do not or can not think this business 'opportunity' and the attendant risks through start to finish.
Ed
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Ed, first I never said anything about making engine blocks being a good business. NEVER said it. Period.
Second, Shelby and Pond have been selling their blocks for over a decade. Not sure when BBM or Side Oiler Garage started their businesses, but the Shelby and Pond designs, forms, etc. and whatever else you need has long since been completed.
Third, according to Brent and Barry, there aren't any blocks available today. None. For over a year. But Barry, and I'm sure other engine builders like Craft, Brent, Tom Lucas have put down deposits at least for new blocks. That is all I'm pointing out. Money has been sent somewhere from an engine builder to an engine block manufacturer. Patrick said buyers are flakes. I said Barry isn't your typical flakey buyer. That is my only point. You're on a complete tangent.