Post by Lonny Doyle on Oct 19, 2016 14:37:50 GMT
A few months ago I mentioned that I've been working on a new business manufacturing a mid-engine kit car called the Goblin. We started our first production run of 10 kits last year and had them all sold before we even finished building them. On our second production run we decided to go with 24 kits and they are all sold.
Our next step is to do a much larger production run of more than 100 kits.
Doing at least 100 kits will bring down the cost of materials, outside processes (laser cutting) and hardware. For example, our quote for laser cutting 24 cars worth of parts was $345 per car. Our new quote for 100 cars worth of parts is only $180 per car. Running 100 kits gets us to a 50% profit margin which is more than enough to cover operating costs.
We are going to ramp up production with 200 kits in 2017 and 500 in 2018. Ramping up makes it possible to train employees and setup supply lines without being overwhelmed. After ramping up to 500 kits in 2018, we will let sales determine the production quantities. The Polaris Slingshot (shown in an image below) is marketed to the same customers and sells more than 1,000 units each month.
To ramp up to our goals, we need working capital from investors. We're looking to raise $500,000 for 15% of the company.
DF Kit Car is not an earth shattering, market disrupting technology but it is a safe investment that will have a high yield. We encourage anyone interested in investing come meet with us, tour the shop, see the cars and get involved.
DF Kit Car Business Summary - October 18, 2016
DF Kit Car Website: dfkitcar.com
DF Kit Car Forum: dfkitcar.com/forum
Polaris Slingshot:
Our next step is to do a much larger production run of more than 100 kits.
Doing at least 100 kits will bring down the cost of materials, outside processes (laser cutting) and hardware. For example, our quote for laser cutting 24 cars worth of parts was $345 per car. Our new quote for 100 cars worth of parts is only $180 per car. Running 100 kits gets us to a 50% profit margin which is more than enough to cover operating costs.
We are going to ramp up production with 200 kits in 2017 and 500 in 2018. Ramping up makes it possible to train employees and setup supply lines without being overwhelmed. After ramping up to 500 kits in 2018, we will let sales determine the production quantities. The Polaris Slingshot (shown in an image below) is marketed to the same customers and sells more than 1,000 units each month.
To ramp up to our goals, we need working capital from investors. We're looking to raise $500,000 for 15% of the company.
DF Kit Car is not an earth shattering, market disrupting technology but it is a safe investment that will have a high yield. We encourage anyone interested in investing come meet with us, tour the shop, see the cars and get involved.
DF Kit Car Business Summary - October 18, 2016
DF Kit Car Website: dfkitcar.com
DF Kit Car Forum: dfkitcar.com/forum
Polaris Slingshot:
