What do you see as the current trends?

Thanks guys! The advise is duly noted. But if this is going to happen, it happens now... Not even close to the best time, I know. The reason for this question is that this company has always been known as a manufacturing shop more than a custom build shop. It kind of started it's slide about five years ago at the tail end of the "high tech" era, and that's what he has continued on with. But the business has a thirty year history of excellent quality products, and nothing from the early days was scrapped.I think if I look back, I can find allot of product that could be very viable today. That part is covered. But the owner would like to know (rightfully so, I might add) where I want to go in the future. I have identified gassers as a hot ticket right now, and a couple others. But beyond that I guess I'm just fishing. I purposely asked this question of you guys BECAUSE of the fact that we don't follow the trends. Meaning, If anyone noticed, it would probably be a good indicator of a "trend". I too watch all the big mags, but realized that I pay very little attention to the "big picture", and when I start to look, it seems very diluted. Oh well, thanks guys!

 

Hi Chip- As far as the current trends, I think you only have to look as far as what another Chip (Foose) is doing. Reality car shows like his are creating a whole new generation of street rodders. Obviously these new guys want all the new "fluff" to go along on the builds.

I think geographically in Phoenix you are in the right place. I would try to market the surrounding areas via the internet on sites such as HAMB, to get your name out there, and build a reputation second to none. Being "high profile" at car shows, swap meets, and other gatherings should also get the "word out" for a very minimal cost with the effort being enjoyable.

You have to seek out and pick the brains of some of the younger guys at any auto events...and prove that an old dog CAN learn new tricks. As far as a business plan, bankers could care less how well a guy can pound fenders or rebuild a motor. As you know, the "real money" in any shop is made on the desk in the front office. I would also suggest that you try to get some contacts outside of the U.S. to investigate any potential to market to other countries or export vehicles. Quite a few high caliber guys from overseas on here it looks like.

Sure the economy sucks, but we won't be down and out for ever. As the saying goes... "I'm not sure if it is better to be an optimist or a pessimist... But I do know that an optimist at least gets something done." I really admire your ambition, and wish you the best of luck with your decision. Bob

 

The car builders and rodders will tell you what they want, just listen.
As for taking over a failed business, here's my advice, and I owned my own unrelated business for 23 years, sold it and retired at 47 with a big ball of cash. Don't just listen to others on the internet who say 'do' or 'don't'(I know, including me). If the business is for sale go talk to the current owner. His books will be available to look over if he is serious about selling. Some people love their chosen field but just aren't business people, and fail because of that, rather than fail because the business wasn't viable. Some guys can drown in knee deep water while others swim the english channel. Is it in a good location? What's the rent? What are the taxes? How big an employee payroll will you need each month? How much does it gross each month? Are there obvious areas for improvement that would increase the income and reduce expenses? If its not presently making money, can you afford to wait while your changes turn things around? In my business I watched others around me in the same business flounder and struggle, while I worked 2 afternoons a week and just dropped in to pick up the cash.

 

Need Louvers?, manufacturing is tough, but could be made to work. Watch out for copycats. Build something that people want/need and someone will copy it.
Subscribe to SEMA for a better business and overall picture.
In the trad market niche, the good quality original parts are gold. So are the strange parts and ahead of thier time stuff. So are racing history parts. Rather than copy the old designs from others, bring out something old of the shop's that is gold in the used market. Design and build complementary items. Look at twenty cars and notice where all 20 have been modified, but each is different and home built. This indicates no aftermarket solution and a need for one.

 

um, I think you missed the actual question. knee jerk.

 

Start building Buck Boards,,,,,,,,,eventually the trend will be big wooden wheels with a horse pulling the wagon.

 

As of this minute the trend is customers not showing up when they said they would to pay their bills.

 

Nads nailed it.

 

Ha! I do think it's coming back around again. Root beer brown, that is..

 

What zman said is very true, i've had to send a couple back home in the past year.

Where i used to stay booked for over a year has now turned into 120 days average.

The stock market guys have all left, there are a few born with a silver spoon still left but they will or would lay you away in a heart beat and your constantly after them to get paid.

The guys that i do stuff for now are hands on, I do stuff for them that they can't or don't have the equipment or a place to do it with.
They are on a buget and know how much they have to spend and normaly can't get everything done at once so i do what they can afford, they take it home,when they get more funds bring it back.

As far as the trends go, i'm seeing both original and old school and not much past the early 50's.

What kind of stuff will this place make or has made in the past.

 

No I really didn't miss the question. I own a small fabrication shop and I also use the shop to create my art and build my cars. If I ran around trying to keep up with trends I would have went out years ago. I do what I love what I have a passion for. Not what's trendy at any given time.

So that being said Fuck current trends!

 

Temper mental - I definitely see your point, but I was faced with that question as the shop owner and I talked yesterday, and truth be told, it was the only question I stumbled on. And you do have to admit, in a small fabrication shop, you can kind of ignore the rank and file of whats going on around the landscape, and concentrate on doing what you do.That's what I have done for years as well. My preference has always run to the traditional, my work is excellent quality and usually on time. I'm known for this type of build,and that has always been enough to bring people to me. However, in manufacturing, I believe it is a bit more important to look at the comings and goings of the big picture if you are going to know where to prototype your next product, and make the next investment to get to a sales point. I'm getting lots of good ideas from all. And another thing that makes me nervous about this gig is exactly what Zman said. I'm seeing too much of that too.

 

chopnchaneled - This has primarily been a frame and chassis manufacturer.I won't use the company name, because it was at one time pretty heavily advertised, and if this doesn't happen I don't want to drag the name through the mud. At one time in the eighties and nineties, it was known as one of the best places to buy a top quality "T"bucket. Not the cheapie type stuff but more the "Dan Woods" upscale kind of stuff. Not necessarily my cup of tea but very respectable stuff. It then followed the trends into the "high tech"kind of stuff, and came up with many suspension kits and frames and rollers that were some of the best available. Back in the mid ninties when I was helping out around here, it was so busy that there was three shifts working around the clock to get product out. My thoughts are to take the already good stuff there and to back date it to what is currently sought after, and release some new stuff that is affordable and what is in line with today's builders. I think this could be done and I think this could be a viable means of going forward with this company, rather than watching it close and die. I must admit that it kind of like being the ultimate armchair quarterback at this point, but I think it can be done.

 

LOUVERS...what part of FAILED didn't you understand? the reason the man went belly up is easy. did you ever hear of JEG'S or SUMMIT mail order speed equipment. please save your time and money. and i say this as a friend my H.A.M.B. brother...POP.

 

i would say the best thing is to be diversified... if someone wants a traditional rod or custom then you build that... someone wants a pro street or pro touring then you build that... i myself would not build a car then try to sell it... i would have someone come to me and then build the car they want... as long as you do what you say you are going to do in a timely manner at a affordable price and don't do half assed junk work you will be fine... maybe get a car do it up and take to local and national car shows to show people this is what you do and the quality of your work....

 

And a barber to give "mullets"

Seriously, I'm with the guys who think you should be careful in today's economy with any new business venture. If you have the confidence, defininitely wait for the bankruptcy sale, you will come out far better $$ wise.

 

With the economy like it is I don't think I'd be sinking capitol in any already failed business. Hawever there is one truth. People who have real money will always have real money. Go big or go home.

 

There has to be more than just 32 fords out there. Thats all I ever see.

 

More fortunes are made in "recessions" than at any other time....

big risks are just that, they can make BIG rewards, or offer big consequences


trends aside...

there are very few innovators (exept on the hamb ) just make sure the old ruts dont channel your creative process... It may be helpful to hire an outside consultant to help think outside the box or just simply streamline the existing procedures/products

 

As zman noted, with any big money project you take on you run the risk of having too much labour and material tied up while you wait to be paid. Yes, doing custom fab and assembly is gratifying but you still have to operate in the black and a big dollar custom job sitting in the shop while you wait is not a profit centre.
If you can concentrate on selling 'stuff' that others need so that they can do some of their own work you may fare better. Jegs and Summit do well because they sell 'stuff'. You just need to find products that have an audience. The business was once profitable making rolling chassis? Go back to that but also sell all of the bit and pieces. Plenty of folks wanting to buy suspension and brake upgrade kits, but many cars are not popular enough for some of the big sellers. If the facility has a good shop then look around at what has a following but little support. Niche markets are a good thing, especially if you have little or no competition.

Also, someone noted that if you do the proper marketing you could branch out. If you have weldors on staff do they care if they are working on a deuce frame or building some fancy iron fencing for one of the local hoity-toity sub divisions? And don't forget that on occasion even some of the big commercial/industrial fab shops fall behind schedule and need someone to pickup some small piece work.


Just my $0.03 (inflation, ya know)

 

It has to be a trend, because it is happening out here too. My shop is full, full of stuff that is done, and not paid for.

 

I encourage self-employment. But, not in every case. I would be hesitant to say go for it without knowing more. You are experienced in business and life. Do what you (YOU) think will work and do it. But think business not hobby. By the way, the smart ass and ha-ha post guys are likely in the under 20s crowd. Ignore. They'll learn as the years pass. I guess we were all like that once. I wish you success!!

 

Talentless self important traditionalism aficionado faggotry..

Being stupid enough to think bagging on rat rods is earning you some cred..

Near stock hight model A's w/flat heads and stewart warners.. genius I tells ya Genius.. not that I dislike that style of car .. just everyone who's actually building one.. well almost..

Being stupid enough to believe all the bullshit on the hamb is the way it really was...like low cars aren't trad.... my old hot rod mags are filled w/them..

 

Your name says it all.

 

good one...I didn't see that coming...try harder..

 

Do we really want to know? LOL!

 

Good point about "building to trends". Maybe talk to the customers and try to pin down what they really want instead of what the "other guys" are doing. Individualized cars are way more memorable that cookie cutter Boydsters.

 

Timmy you ain't right! LOL! And what the hell is that sticking out the top of the motor in your avatar? Looks like the velocity stacks from hell!

 

I've survived many recessions and crappy situations. I do believe in never giving up the ship but sometimes you have to face reality. It takes more than just an idea to keep the doors open while maintaining your sanity.

Everyone has a good answer to this situation. As a sideline I do some consulting with small businesses and I've helped people buy and sell businesses and found that the one thing that really helps a buyer make a wise decision is a thrid party opinion. Find someone who knows what to look for in a good and bad business and pay them for that advice. An outsider perspective can help you see probelme and possibilities that you may overlook.

Business is tough all around and even in good times there are issues. If you already have experience running a business, go with your gut feelings. If you are 70% doubtful it will work then better to go away than regret.

What is his price for the business? If there are no customers, the business itself has no value. This may just be an asset sale.

I'm not sure what the multiples are in a hot rod shop business valuation. In a good economy, automotive service business valuations will run 3-5 times earnings.

If you do decide to turn this thing around, pay attention to what experienced shop owners tell you but remember this, you can have the best product/service, best staff, best looking building, know your stuff, plenty of financing, etc. but if you do not know how to MARKET your business, it will fail.

This is an area of vital importance that most business fail to heed. Not because they were under funded or did not have the right people or the worst product, but because they did not market to the right people and how to do it. Marketing is key for more failures than successes. Learning about this often overlooked ingredient to success is absolutley vital to surviving good and bad times.

Mikey didit
www.mikeyspinstriping.com
In business since 1978 and all with nothing but desire, focus, a rebellious attitude, persistence and hustling my ass off . It works.

 

I had gotten into that and as i worked out of it changed policys.

Now i invoice every thursday and stop on that project untill paid.

Also unless its someone that i've worked with in the past require at least
my cost on parts ordered.

Like others have stated, Cash Flow is king and this day and time you have to be very
careful, people do understand this in perticular the ones you want to work for, they
also want you to stay in business.