LTx Motown Block
TECH Regular
Joined: Sep 2003
Posts: 442
Likes: 3
From: Raleigh, NC
$70k is not a lot of money in the business world. Surely a company that has been around as long as World Products would easily have resources such as that.
Why doesn't World Products invest the cost of tooling, then sell the blocks? I just don't understand the philosophy of a for-profit company asking for, uh, "donations" from customers so they can build blocks to sell to these same customers for a profit. I could much more easily understand "deposits" than "donations".
I would imagine there is probably a market for somewhere between a few hundred to a few thousand of these blocks (assuming a street price of right around 2 grand) nationwide over the next few years. Either it makes sense or it doesn't.
Or maybe I'm just being cynical.
Why doesn't World Products invest the cost of tooling, then sell the blocks? I just don't understand the philosophy of a for-profit company asking for, uh, "donations" from customers so they can build blocks to sell to these same customers for a profit. I could much more easily understand "deposits" than "donations".
I would imagine there is probably a market for somewhere between a few hundred to a few thousand of these blocks (assuming a street price of right around 2 grand) nationwide over the next few years. Either it makes sense or it doesn't.
Or maybe I'm just being cynical.
Big tooling costs is the begrudging answer from a company that doesn't seem to want to make the product out of fear of no return. They prob figure the 70k will never be raised and they can still look like they tried to help.
KW
Saw this on FB today and came here to post it but you beat me too it. A month or two ago I posted the video here talking about this project but we had a few asshats **** all over the thread and it ended up getting it locked. Hopefully the haters stay the hell out this time.
In short, I'm ready to donate.
In short, I'm ready to donate.
Now we're just missing the other asshat.
Thread Starter
10 Second Club
iTrader: (1)
Joined: Oct 2002
Posts: 540
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From: Austin, Texas
Thread Starter
10 Second Club
iTrader: (1)
Joined: Oct 2002
Posts: 540
Likes: 11
From: Austin, Texas
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I wish I had a car to put one of these in. My T/A is already an LS, not going backwards on that, and the Z28 that's getting an LT can't use a motor in those displacements due to class rules. Guess I may have to build another car haha!
Either way I'll donate, I'd like to see these made.
Either way I'll donate, I'd like to see these made.
I wouldn't call it "donating", that's a term used to raise money with the end goal to help people in need, not a for-profit company to gain funds to tool a plant that will build a product that is intended to be sold for profit, I would call that "investing" or a "deposit".
In short, you're trying to sell a block for $2800 and want to do a first run of 200. You need $70k to get manufacturing going. Offer customers a deposit to lock them in for the first 200 for $350 which will be refunded if all the funds are not raised, but non-refundable if the project starts and they want to back out. This isn't a lot of money for those seriously interested and will show how many people are willing to actually put their money where their mouth is. It will protect both parties if the project does or doesn't work out.
Once the funds are raised and production is getting ready to start, collect the other $2,450. Most likely if they were serious enough to spend $350 on a deposit that wouldn't be refunded if the blocks were actually made, they'll spend the balance due. That is the process I would do to if I was trying to get his project off the ground.
After the blocks are made and sold, that gives you a $560k revenue, $490k gross profit after tooling cost. I don't know what your margins will be on this block or your overhead cost, but that should have been seriously looked at with a feasibility analysis and business plan, and be taken into account and reflected with your asking price.
Being a big LT guy, I wish this project lots of luck, but if I decided to spend big money like that on a block, it would be an LSX
In short, you're trying to sell a block for $2800 and want to do a first run of 200. You need $70k to get manufacturing going. Offer customers a deposit to lock them in for the first 200 for $350 which will be refunded if all the funds are not raised, but non-refundable if the project starts and they want to back out. This isn't a lot of money for those seriously interested and will show how many people are willing to actually put their money where their mouth is. It will protect both parties if the project does or doesn't work out.
Once the funds are raised and production is getting ready to start, collect the other $2,450. Most likely if they were serious enough to spend $350 on a deposit that wouldn't be refunded if the blocks were actually made, they'll spend the balance due. That is the process I would do to if I was trying to get his project off the ground.
After the blocks are made and sold, that gives you a $560k revenue, $490k gross profit after tooling cost. I don't know what your margins will be on this block or your overhead cost, but that should have been seriously looked at with a feasibility analysis and business plan, and be taken into account and reflected with your asking price.
Being a big LT guy, I wish this project lots of luck, but if I decided to spend big money like that on a block, it would be an LSX
I'm saying if you collect a $350 deposit from 200 potential customers and start production, then you reach out to them and say "okay, we're building them, time to pay the balance of $2450", and they say, "oh I'm not paying that" or "I don't want to buy it anymore". Well then since production has started they forfeit their order and deposit.
Anyone with any experience in sales knows there are a ton of people that love to say "I'd buy that", but very few will put up the money. Look at the Chevy SS sedan. Everyone loved to bitch on internet about how nobody offers a v8 6 speed sports sedan, Chevy brings it out, and they're sitting on the lots and dealers are having a hard time moving them.
Anyone with any experience in sales knows there are a ton of people that love to say "I'd buy that", but very few will put up the money. Look at the Chevy SS sedan. Everyone loved to bitch on internet about how nobody offers a v8 6 speed sports sedan, Chevy brings it out, and they're sitting on the lots and dealers are having a hard time moving them.
Donated, it's worth a shot and more than anything I admire the dedication the folks involved have shown towards this. It's easy to talk trash and say it won't happen, but every once in a while it's cool to bet on a long shot. I know quite a few folks, one whos first and last initial match with the first and last initial of Taylor Swift have been trying for years to get this.
I see that a lot, a few years ago there was group purchase deal for 6LE to remake the SLP Firehawk IROC style spoiler, tons of interest, so the prepay was around $700. In the end it was only three of us who prepaid, the project was scrapped.
I see that a lot, a few years ago there was group purchase deal for 6LE to remake the SLP Firehawk IROC style spoiler, tons of interest, so the prepay was around $700. In the end it was only three of us who prepaid, the project was scrapped.
After shipping it's probably more like $3k for this block, and I do consider $3k big money, especially to spend on a gen 2 bare block when you can buy an LSX block shipped from Summit for $2300. With the exception of couple of hard core LT guys that will actually put the money up for this, who else is going to spend almost $700 over an LSX block to go big cube gen 2? Like I said, cool idea, I wish it the best, I'd like to see it happen, but I don't know if it could happen while turning a sustainable profit.
After shipping it's probably more like $3k for this block, and I do consider $3k big money, especially to spend on a gen 2 bare block when you can buy an LSX block shipped from Summit for $2300. With the exception of couple of hard core LT guys that will actually put the money up for this, who else is going to spend almost $700 over an LSX block to go big cube gen 2? Like I said, cool idea, I wish it the best, I'd like to see it happen, but I don't know if it could happen while turning a sustainable profit.
The group price is only $1950 though, thats a steal for something a lot of us have been waiting over a decade for. If I didn't JUST(literally within the last month) dump ~$5k in mods into a lil ricer I would be alllllll over this. I wanted a fun daily, but you can bet your *** that if I knew this was on the horizon I would have kept it stock and used that money for this block and a rotating assembly to make a killer 434. I'd shoot for 700hp NA, and be damn close too.
****, lol.
