Building Cobras for Profit?

[CobraDan]

There are a lot of people already doing what you are thinking of doing but they have also proven with cars built and sold they know what they are doing. Like any car on the market one that is built in the economy mode will bring less profit mainly because after you put a certain larger price tag on it, those that have done their home work will say for that price I could buy a Shelby or a Kirkham. If you could come up with the money to build a cobra and sell it for a profit very unlikely, you would be more likely to break even and get your money back. Most that have built and sold Cobras for profit have built a personal Cobra which was sold with or without a profit but because it was so well done they advertise to build one for a client and of course a profit margin would already be built in. When I first moved into southern Florida I met a guy building Cobras out of a small shop called the Cobra Shop in North Fort Myers. He had been a boat builder and knew fiberglass, he made his own frames etc., all cars where sold as turn key only and had BB Ford engines the only thing you got to pick was color inside and out and whether you wanted it to be stick or an automatic. His partner was the painter and still runs the business today and has kept the name Cobra Shop but no more Cobras are being built as the original builder stopped building over 5 years ago. Doing everything himself he had $17,000 invested in each car and they where sold for $39,900. These where really nice looking Cobras when finished and I have some local members in the Deeper South Cobra Club who own one. With say around 50 shops world wide today building Cobra replicas from the large shop to the very small shop and another 40 shops that have come and gone, sure step on board.

[fostereast]

The idea of doing this and making money is like any business... hard. One of the challenges you face is the fact that a lot of Cobra guys like building them more than owning them or want to do more than one build but can't justify keeping two cars. (especially when the next one will be done better) Your also competing against a lot of small shops trying to live their dream of making "cars" for a living too.

Another fact to contend with is there is no reason to pay a premium to buy a car "built to sell" from someone who does not have a reputation unless you can figure out how to make the car special.

There are a lot of cars for sale on CobraCountry right now and I suspect there will be plenty more for sale over the next several years.

[John McMahon]

Getting into the game a little late, aren't we?

To build a car, figure the costs...and then tack on another 10 - 20%.

Unless, you are a high volume manufacturer/dealer, very little money can be made on these cars.

Find a better investment for a business, Cobras ain't it, the market is saturated.

[jburnes]

John:

When you say add 10-20% do you mean for all the little stuff that you will invariably fail to include in your original plan?

[John McMahon]

Originally Posted by jburnes

John:

When you say add 10-20% do you mean for all the little stuff that you will invariably fail to include in your original plan?

that, and problems/fabrications needed along the way, a customer wanting a car just right/ etc.

Cobra owners are very particlular and run the gamut from period correct to mucho mods. Hard to nail it down.

Also, what is your expected build time? Whose kit will you use? Dependent on kit, may determine the build time based on completeness and ease of assembly. Figured in the cost of man hours? Why only red and blue? Tons of those on the market already.

You would probably fair better in trying to resell existing cars, but even then it may take a year to move one.

[wtm442]

If he is an "awesome mechanic", he would most likely make more money fixing cars on the side as compared to building Cobras. Go with his strength. I have a friend who fixes cars on the side, and he is very successful with his side job.

[John McMahon]

Originally Posted by wtm442

If he is an "awesome mechanic", he would most likely make more money fixing cars on the side as compared to building Cobras. Go with his strength. I have a friend who fixes cars on the side, and he is very successful with his side job.

Right. How is he with bodies/paint? These cars require lots of hours to prep the bodies for paint, not a straight edge on the car. Get a seam wrong and it will show up in the final product....wavy. More hours=less profit.

Everything you outsource besides the mechanical work that your bro does, cuts into your profit. Unless you can do it all yourself, its near impossible to profit. Good companies clear a few grand on each completed car.

[jburnes]

Originally Posted by John McMahon

Right. How is he with bodies/paint? These cars require lots of hours to prep the bodies for paint, not a straight edge on the car. Get a seam wrong and it will show up in the final product....wavy. More hours=less profit.

Everything you outsource besides the mechanical work that your bro does, cuts into your profit. Unless you can do it all yourself, its near impossible to profit. Good companies clear a few grand on each completed car.

We'll definitely have to outsource the paint work for the first couple. Now, are you saying that companies that do everything, including paint, themselves still only clear a few grand per car?

[jburnes]

I guess I should revise my statement a little. We want to build cobras and we aren't necessarily trying to get rich doing it. Both of us have a main income. We just don't want to lose money building cars. Which company would you guys go with? What method would you use to sell it? etc.