Why do Turbo companies......
Folks have failed because a fabricated turbo kit is not as simple as making control arms, and they follow up a great idea with shaky business ideas. Let's say you mostly do retail sales right now, small items. Your outgoings (bills) are $25,000 a month. That is rent, payroll, insurance, boxes, etc.
You now want to be a turbo shop. If you bring in $25,000 a month, and that is what your cost of business is, you are not profitable.
I part own a recruiting firm, and our outgoings are $100K a month if you include us paying commissions. So if we do 1.3 million we make a profit of 100K after expenses. Anytime you see a shop go out of business owing companies and people $200K, it just shows that the shop owners ran an unprofitable business for a long time... or maybe just for a few months. Most folks don't really know how to manage finances.
You now want to be a turbo shop. If you bring in $25,000 a month, and that is what your cost of business is, you are not profitable.
I part own a recruiting firm, and our outgoings are $100K a month if you include us paying commissions. So if we do 1.3 million we make a profit of 100K after expenses. Anytime you see a shop go out of business owing companies and people $200K, it just shows that the shop owners ran an unprofitable business for a long time... or maybe just for a few months. Most folks don't really know how to manage finances.
just out of curiosity if i were to give my car to U(anyone that makes the kit themselves) how long would it take to be returned to me with everything done tuning,weld etc???
Originally Posted by TurboGoat
Why do turbo companies sell a kit that is not already made and ready to ship?
All someone has to do is get past the 60-90 days where chargebacks are easy, then they've got their "customers" by the *****, any chances of ever getting parts and/or a refund diminish and become increasingly difficult with every passing day after that.
Its easy money to them, at best case they make out with $70k of peoples money, at worst, they have borrowed $70k interest free for over a year.
Shawn
You guys are missing the pretty straight forward answer to the whole issue... They do it because they can. We as a community allow them to. There are people willing to throw DEPOSITS on kits before they are even proven. If they had to actually take the time to build a kit and market it, there would be alot fewer companies on this board with a viable product.
What other companies do you know on here that can actually get a huge response from just posting a picture? Take the APS twin turbo thread for example. From what ive seen here in the past, I could literally set a turbo somewhere in the engine bay without about 2 feet of tubing mocked up, snap a picture, and post it waiting for the cash to drop in my lap.
What other companies do you know on here that can actually get a huge response from just posting a picture? Take the APS twin turbo thread for example. From what ive seen here in the past, I could literally set a turbo somewhere in the engine bay without about 2 feet of tubing mocked up, snap a picture, and post it waiting for the cash to drop in my lap.
Originally Posted by xssive
What other companies do you know on here that can actually get a huge response from just posting a picture? Take the APS twin turbo thread for example.
Peter
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TECH Enthusiast
Joined: Mar 2004
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From: Loganville, GA
Originally Posted by peter@aps
Difference is that APS stocks twin turbo systems so that US dealers can order and stock twin turbo systems as required. APS produces 50 twin turbo systems per production run, that requires a load of capital to be invested to service our US customers in a prompt and timely manner, that's always our aim.
Peter
Peter
(that keeps P/S and A/C with a tubed k-member) 
Originally Posted by SPANKY LS1
Because most people on the internet are desperate to have the latest and greatest, and newest and bestest, and are willing to take tremendous risks for it. Anyone with $50 can obtain a business lisence and start up a turbo company, and fools will line up to send them money without seeing a single completed kit.
All someone has to do is get past the 60-90 days where chargebacks are easy, then they've got their "customers" by the *****, any chances of ever getting parts and/or a refund diminish and become increasingly difficult with every passing day after that.
Its easy money to them, at best case they make out with $70k of peoples money, at worst, they have borrowed $70k interest free for over a year.
Shawn
All someone has to do is get past the 60-90 days where chargebacks are easy, then they've got their "customers" by the *****, any chances of ever getting parts and/or a refund diminish and become increasingly difficult with every passing day after that.
Its easy money to them, at best case they make out with $70k of peoples money, at worst, they have borrowed $70k interest free for over a year.
Shawn
Originally Posted by 52172
I'd be careful who you called a fool
I didn't intend to insult you or any other person specifically, and I apologize if it came out that way, my point was that all they had to do was post some teaser pics and people were lining up practically throwing money at them to have the latest and greatest, to be the first to have the absolute newest kit out there, without considering for a moment "hey, they've never produced one single part, is it really a good idea sending them $3500 of my hard earned money".....
In an honest moment, you'd probably agree that it was foolish to rush and order such a high ticket item without first seeing it they could even deliver.....
Shawn
Being a company that has aspriations to build and sell kits, the simple answer is R&D. It takes alot of time and money to build a kit, and most of that time and money is wasted because one thing doesnt work with another.
I think its a bad idea to take deposits on kits, because the person taking the deposits fills all his time up with trying to make those kits and ends up living off the deposit money, and running out when the time comes to buy parts.
We are nearing completion of our kit, however I have had to borrow someone else's car for nearly 4 months, and along with that burden, I have probably spent $6000-$7000 in R&D and mistakes. I dont know how many flanges I've fucked up or tubes I've welded wrong and had to toss out..
We've learned from other's mistakes however, and the first person getting the kit is the owner of the car Im using. Not one kit is hitting the market until 10 kits are on my shelf. Sure I'll be upside down a bunch of money, and I will probably have to sell all those kits to re-coup my lost money, but thats the price a manufacturer has to pay to make a reputable product and have customers to follow..
I think its a bad idea to take deposits on kits, because the person taking the deposits fills all his time up with trying to make those kits and ends up living off the deposit money, and running out when the time comes to buy parts.
We are nearing completion of our kit, however I have had to borrow someone else's car for nearly 4 months, and along with that burden, I have probably spent $6000-$7000 in R&D and mistakes. I dont know how many flanges I've fucked up or tubes I've welded wrong and had to toss out..
We've learned from other's mistakes however, and the first person getting the kit is the owner of the car Im using. Not one kit is hitting the market until 10 kits are on my shelf. Sure I'll be upside down a bunch of money, and I will probably have to sell all those kits to re-coup my lost money, but thats the price a manufacturer has to pay to make a reputable product and have customers to follow..
Originally Posted by frcefed98
A local company is good at having its kits in stock for the mustang guys. Hellion Turbo Kits, ran by John Urist and Co. Tend to have em in stock. I think he worked up a deal with one of the major exhaust companies (magnaflow???) to bend and produce the pipes to keep the cost down and have them readily available...atleast that's what a read a while back...don't keep up much with the mustang stuff. Thats working smart not hard
Maybe I'll cruise down there on monday to chat with him
