Projects Making custom reproduction parts

He's asking about supplementing his income. Post #14, Post #38

 

I've known a few guys that do what you're talking about and I have tried. It's a long road to career returns off of this type of thing. The marketing budget lines mentioned are definitely true and your R&D efforts will require talents in themselves that match those of a music scout.

I had international magazine articles, even a cover and centrefold, and a Sema show guide blurb with photos (all free) thrown at me for a one hit wonder body Kit I came up with in 2002. Still, there was very little serious response that ever came out of those heavy hits - and they cost me NOTHING out of pocket.

What also seems like a broad market may not be and pocket groups like here may be willing to buy but more than likely wont be able to support you, at least not for a long time until you've got your product lines worked out.

For every company like Lund and Eiback there are 20 smaller ones doing the same thing that don't get the first response of thought to purchasers.

I'm not trying to rain on the parade but don't do as I and many others have, by getting into it and nearly loosing everything. Anything other than hobby stuff at "our" level is playing in a big field and expecting returns to match the first inning R&D will be the biggest risk.

 

Start small, find a niche market, something that someone else does not do, do some research on your own to see if it's viable. Look at the numbers, how many could actually use your product, is there an alternative to your product? what's the quality like? does it fit and function like OEM? most people want something ready to go, with minimal effort on their part, it's society, the way things are, they don't want to have to "think" about things, they've got other things on their mind so they'll pay for a quality product that fits the first time so they won't have to think about it causing problems in the future. Don't jump into it with everything you have, strategize your every move, think it through. Canvas all the vendors with informational letters about you product explaining to them why it's such a good product, be honest don't promise the moon. Also, don't be afraid to give them discounts on quan***ies they'll see it as a friendly outreach. I find this formula works, it has worked for me in the past and I've gotten responses back from vendors interested and had more questions that needed answers or more info. All you need is one vendor to carry your product and word will spread a**** other vendors that'll want to carry your product. Try it and see what happens...

 

If you make parts with the oem manufacturer name or logo on them without approval and a royalty contract and then get caught you have a big big problem. Confi****ion of inventory and tooling is possible as well as major league fines.
See Ford, Chrysler, GM, Coca-Cola, Dr. Pepper history on this topic.

 

OK guys, again thanks for the input. I have finally completed the part(s) I had planned to make. Now the hard part, having someone buy it.

It's a stainless steel grill for the 1937 Buick. A narrow market but I know there's plenty of them out there and are still being pulled out of fields and barns. I would feel safe to say a huge majority of them, new projects, older restorations and modifieds have grills that are broke and with poor plating. My stainless grill should last for every, at least longer than the car and owner. My market may be limited but if I can ****** a good chunk of it I will be happy.

I have already gotten an order for one, the first day I put it out there that I was making them.

 

Bob, Those look beautiful! the quality of those should dictate the price, be fair to yourself and the market, don't be cheap on such a quality part!. You should send out information packets with lots of pictures to vintage Buick parts vendors try your hand at Ebay auctions, and I'd start a small website. The website is nice because if you link it to a Paypal account, payment will show up in your email so all you have to do is check your email once a week and payment is covered, all you have to do is ship!. And the website is up ALL the time, you don't have to keep tabs on it, like an auction. There are a lot of my sales at 2:00,3:00,and 4:00 in the morning..you have to remember there are people all over the world in different time zones looking at your site so sales happen when you'd least expect it!. Advertise on the HAMB also, it's free! and maybe head up local car shows within 50 miles with a small booth space with business cards and information pamphlets..

 

Absolutely Beautiful. My research shows 220,346 Buicks were made in 1937-I am not sure how many different models used this grill. (Versus over 1.7 million Fords and Chevy's) But, if 10% survived 75 odd years and WWII s**** drives, you've got a potential of 22,000 customers.

You should look at Bob Drake's and Dennis Carpenter's sites to get pricing ideas for your inserts if you're not sure how much to charge. You might also consider getting HAMBers you trust who are vending at shows you're unable to attend to feature your grill inserts on a commission basis.

You've got a really nice product-please keep us posted on how the marketing is going.

 

Gorgeous piece. I would love to try a grille like that on my '52 Willys Wagon. Trying to 'cl*** it up' the Willys a bit.

In my real life, I have worked with numerous small parts manufacturers trying to make a go of it. I hope you are accounting for ALL OF YOUR COSTS in that part, plus some margin which rightfully acknowledges that you are the only person in the market with it. Sorry to people who are trying to buy that part for the lowest price possible, but what situation would they be in if you could not afford to produce the part? They would still have no solution to their present problem.

A person whom I respect told me that "everybody has gotta get paid" when trying to set up distribution deals. Make sure you get paid. This leaves enough pricing room for a distributor to come to you and ask for a discount to buy 50 at a pop. You can still do it and not make your original customers mad...

Don't quit before the miracle happens. Making parts like this means you are willing to place a bet on yourself.

 

Another thought: marketplace ****ysis is not always about "how much can I sell"... it is about what are the forces that govern compe***ion. (Look up "Michael Porter's 5 Forces").

One way to get into a market is to expand "horizontally"... this means you offer something that consolidates steps in the value chain. So, if you are selling a part and the person installing it needs 3 other parts to make the project work, offer those parts in a kit. You don't necessarily have to mfr the 3 other parts.

Or, create a compe***ive advantage for yourself by stretching a bit to acquire some raw materials or other ingredient components at a good price. My pal distributes a special type of brake caliper paint. He was selling so much that the mfr offered him the "company" for sale. He bought the business over time. Now, he has reduced his cost significantly without really working much harder.

You seem like a smart, talented guy who has probably thought of all this already. Just in case you didn't, I wanted to offer some experience - mainly because I **** at making parts !!

 

Thanks again guys. I have a set listed on the HAMB cl***ifieds, and on a few other sites, at a price I think is fair to both a buyer and to me. I'll have to see how it works out. I already have one person requesting a set. We'll see if I'm asking too much or too little for them.

 

Sometimes it helps a small supplier to work with a distributor. A distributor can order a larger quan***y parts anticipating sales and take the hit of initial investment. It would be the distributors job to market and sell the product, easing up on the manufacturer on a job which they are usually not very good at. The manufacturer can tool up and make a run of a larger quan***y of parts knowing that they will all be sold when finished ( hopefully with a contract instead of a handshake). The trouble most small time manufacturers have a hard time dealing with is that the distributor will probably make as much off the part as the manufacturer. But think about it , the distributor is taking the risk of unsold parts or parts that take a long time to sell.
The manufacturer then ends up being just a manufacturer and is somewhat removed from the hobby end of it and it would not make any difference if he was making hor rod parts or bathtub parts. I did this back in the 80's when I was laid-off from my regular job. I made up some samples and took them to a distributor, he liked them and made an order at that time. On a handshake at that time, I didn't know any better. Thankfully he was an honest guy and always treated me well and always paid on time. That led to some other products and I got busier that I wanted to be. I ended up working 12-16 hours a day, so I hired some people that I trusted, that ends up being a challenge all its own. Thankfully, I got called back to work, and styles changed so orders started tapering off. It was fun while it lasted and I made a living for my family at that time and I give some of the credit to my distributor that took a chance too. I could have kept going if I wanted to, but I was not getting any time to work on my own projects.

 

The hardest part of a business that offers a service or product is finding a value of the service or a part. Selling a service or part, or one like that is already being offered, is kind of easy to place a price on. Just check out what the compe***ion price of the compe***ion. In my "real" business there is compe***ion but not as many business do what I do, not as many as like a machine shop or auto repair shop. I am constantly juggling making sure I charge enough to pay me a decent and keeping the price low enough so my customers will accept my price. While I'm in a small niche of the industrial field there is enough compe***ion willing to under cut the price to buy a job.

 

Bob, here's a part we manufactured when I co-owned a machine shop a few years ago for my father in law's childhood friend, who owned a corvette only business.

They are made from 6061 aluminum flat plate, about 3 feet by 4 feet long. The initial cost of raw materials, and writing a program, set up, proving out the program was high but, he sells out every time we made a batch for him!. He does minimal advertising for them maybe a backpage in a corvette geared newsletter that's it.

His market is for a one year only corvette,1958. They are not offered on any other models. There was one company making them out of Mexico and the quality was garbage. He saw the potential market for them and was willing to bet on himself that there would be buyers, and he is/was right.

The job has since went another shop since our doors closed, but he still places an order a couple times a year. Sometimes the biggest setback for people is the willingness to take a risk on themselves. They don't realize without risk there's no reward. BTW, he gets $3000.00 for a set of these spears!!! I attached a pic.

 

The best of luck to you. It excites me to see quality parts made by the little guy. Go man go!

 

When I started my current business almost everyone I talked to told me it was a tough business to be in, that there was too much compe***ion. All I would say is there is a lot of compe***ion in the tavern industry but that doesn't seem to stop bars from opening on almost every street corner and gas stations with more frequency. My type of business does have a smaller pool of customers to choose from than some but I've been on my own for over 15 years and I've seen many of my customers and many compe***ors come and go and I'm still here. Sometimes, well a good percentage of time, it's a tough business but I've weathered it and I've grown my business from a rented space in a run down building to owning my own building.

A while back I inherited a decent amount of money, $50k. My wife wanted to invest it but I wanted to use it as a down payment for my business. My wife resisted, she wanted to invest it in the stock market. I asked if she put the money in the market where would it go. She replied businesses would use it to improve themselves. I then told her that instead of investing it some stranger's business why don't we invest it in our business, a business we can control and realize a more direct profit for ourselves. We bought the building.

Now with is venture she seems to really back me on this. I think she feels I can make something of this. I have told her we're not going to get rich doing it but it's something I want to do and would enjoy doing.

 

Bob,
The grills are awesome! You have done an amazing job. I agree with what the others are telling you, don't sell yourself short. That's a premium product and it should command a premium price.

I wish you luck
Bobby

 

Appleton 112 spotlights and/or replacement parts.

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Bob, I recently went to Taiwan and of all people I should run into was Bob Drake. 90% of his parts are produced in that country. Not much done in China.