Building cost vs resale value

[IslanderInDC]

Hi. For the last 3-4 months, I've been researching the many different kit car companies with the idea of building and reselling the finished models for a profit. After looking at more kit car companies than should be allowed, I am certain that DNA offers the most feasible kits for this endeavor. Now to my questions... Are there other DNA enthusiasts that have done this? I believe Madman have built several kits to date... Is it reasonable to expect a profit for a finished product built to the highest quality standards? I've seen the pictures of Howza, Madman, beamaman, and beanyfelix's and see those as the standard to follow since all those beautiful cars were all built by their owners. As a business owner, I realize that there's risk with every business venture and nobody can guarantee a profit. However, instead of assuming that a reasonable profit is feasible, I rather ask others that may have done this to see whether my assumption is correct. I live in the Washington,DC metro area. Thanks in advance for your replies and advise.

[demjackets]

I've thought about this too. I'm in Northern Virginia as well, but I was going to build one, sell it, then use the proceeds to build a 2nd car for my own keeping. Also learning about the build along the way and applying what I learned to the 2nd build 

[IslanderInDC]

Thanks for the reply demjackets. That is kind of my plan too. I want to keep on building them as a side business while, eventually, keeping one for myself. If all goes well and it is as profitable as I think it can be, I would definitely consider doing this full time down in the Caribbean and have somebody manage my business in MD/DE.

[tenpin]

Well, if you go for a 5cudo, there's no excuse for not knowing a great deal about the build before you get started... 
The builds are all straightforward, whether it's a 3Sixty, 4Thirty or a 5cudo. UK magazines have featured home built examples as well e.g. my 3Sixty (as on forum front page) and Madman's 4Thirty. This proves, in my case anyway  , that almost anyone can end up with a good looking car! 
If I were going to do it - I'd build one first then sell it - that way there's no buyer pressure on you to change this or that or to rush things.

 - tenpin

[DoveUS]

My two cents' worth...

Wondering what the buyer's perspective is when presented with a completed car that is for sale vs. ordering one to be built specifically for them.

Cost to you is the same, unless there's any unique custom features, but do they consider a prebuilt available car as a used car vs. considering a new conversion on a used car as a higher value option and would pay more. Make sense..?

Certainly easier to prebuild and make available, I'm sure they'd sell well, but as a business always better to be spending someone else's money in the process rather than investing and hoping for a sale later.

Dove US

[IslanderInDC]

Too funny tenpin! If my finished product ends up looking anything like either yours or Madman's cars, I should have people lined up waiting to buy my car. DoveUS, I agree that is much better to use others people's money. I do, however, think that I need to build at least one to gain credibility as a builder. Once I have a portfolio started, it should be easier to finance with buyers getting their kits and donors and me putting them together at a very reasonable cost!  Thanks again to everybody for your comments!

The IslanderInDC

[MADMAN]

build one for yourself first, if it,s good enough it will sell, or use it as a show car for your standard of work.
most people like to see exactly what they are buying first.
When building for other people its hard to have the same perspective of quality as someone else.
Plus the other thing is colour, paint it Red and you will almost certainly sell it, (sorry tenpin, I meant blue)
MADMAN

[demjackets]

Sorry MadMan but mine will definitely be yellow. Hence the whole demjackets (Georgia Tech) screen name.

Red is against my religion

[Lord Beany]

Sorry MadMan but mine will definitely be yellow. Hence the whole demjackets (Georgia Tech) screen name.

Red is against my religion

Now your talkin!!!

Beany

[IslanderInDC]

Demjackets, I didn't realize that you're a fellow ACC member. I'm with Madman on this one. As a responsible UMD alumni and Terps basketball season holder, RED is the only color to go on mine. I may even be tempted to put a prancing t..., err... I meant fighting turtle (team mascot for those overseas) hidden somewhere in my finished car...

[DNA Autoworks]

Sure a ghosted image could be airbrushed on the car somewhere.

[seriph]

FWIW I believe the only way to do this is to build-then-sell at least the first two cars. One to show your skill and attention to detail, (and go through the grief/joy of doing it for your self) the other to sell at no/low margin in order to get some serious referral activity happening.

...but an important consideration is that you're going to need serious skills and experience in design, fabrication, customising, panelbeating, etc. as well as all the business skills an ultra niche microbusiness needs including high quality marketing collateral.

Finally, as Richard Branson said - unless you have serious financial backing, don't go into a business which requires skills you don't have.

I am IN NO WAY saying don't go fot it, I am saying do a LOT of homework and understand as far as is possible, the incredible work involved.

I havent built one of these and am uncertain what's involved, but I have built other cars including taking a 1974 Porsche 911 and transforming it into a 1993 twin turbo that was good enough to fool the sales manager of the Australian Porsche importers. My point here is that while on paper I made around $22,000 'profit' the project consumed around 6 months of my time and cost a considerable amount of money .... but then I built it for myself, not to sell, so didn't cut corners to reduce cost or maximise profits.

[xoldilwlwl]

Hi. For the last 3-4 months, I've been researching the many different kit car companies with the idea of building and reselling the finished models for a profit. After looking at more kit car companies than should be allowed, I am certain that DNA offers the most feasible kits for this endeavor. Now to my questions... Are there other DNA enthusiasts that have done this? I believe Madman have built several kits to date... Is it reasonable to expect a profit for a finished product built to the highest quality standards? I've seen the pictures of Howza, Madman, beamaman, and beanyfelix's and see those as the standard to follow since all those beautiful cars were all built by their owners. As a business owner, I realize that there's risk with every business venture and nobody can guarantee a profit. However, instead of assuming that a reasonable profit is feasible, I rather ask others that may have done this to see whether my assumption is correct. I live in the Washington,DC metro area. Thanks in advance for your replies and advise.

I would love to be the first on your list of potential buyers  I live in California. Please keep us updated with your project. Best to all. regards, Paul