Not Ranked
When you guys are talking about lower margins and more volume to make the same profit consider that SAI buys frames and bodies. If KMS were to sell the cars they alloted to SAI as rollers, they could make the same profit on the frame and body, plus huge margins on the bits to make the car a roller.
Just a hypothetical: Frame and body to SAI for 15k, make it a roller for 42k, and you just made 27k for installing seats, gauges, suspension, wheels, tires, brakes, windscreen, and a wiring harness.
Looks like a good business model from my POV. Then ad in high profit extras like stripes, carpet, door panels, ect. and you have another revenue stream.
So, you had a product line with one revenue stream, bodies/frames to SAI, and you turn it in to 3 product lines, bodies/frames, complete to roller, options/upgades. All the while you take up a larger % of the replica business, because at your new price point everyone in the 40k roller market will have to make a choice, aluminum or glass?
Not to mention KMS has spent years building up good will, and people who could have purchased a real Cobra choose to purchase a Kirkham based in part on this(remember Jamo's old sig line).
Disclaimer:
This post includes broad assumptions to prove a point of view. It is not the intent of the poster to claim that any of the content is fact. I don't know how long it would take to CNC a block out of a chunck of aluminum.
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