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Bonhams Auction at Stafford
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<blockquote data-quote="Robert Watson" data-source="post: 9843" data-attributes="member: 38"><p>Prosper - I agree that the books showed that it cost the Club just over 28K to build the Shadow. I also understand that all parts were supplied at cost. I have absolutley no privy to the markup of parts from VOCS or any other supplier, but if you look at the VOCS books, I'm sure you will soon see that all the cost of running the Co. is covered by the difference between what it costs them for parts and what they sell them for. </p><p>I can't put my hands on the numbers at the moment but --- being very crude - and not in vulgar way!</p><p>Sales say 200K</p><p>Wages, rent, advertising and promotion, VOC member discounts, special offer discounts, fees, light, heat, etc etc plus a profit of 5 or 10K means maybe 60- 70K spent, so 130-140K in parts costs, and you have a mark up of at least 50% - and I suspect likely more. </p><p></p><p>That means that your 28K in parts now costs more like 42K - or somewhat less if you negotiate a better discount. Not so feasible.</p><p></p><p>I am not saying the markup is out of line. I have run small businesses and know what one has to do to make a profit at it. </p><p></p><p>Next option would be for a man to do a one off. Unless you have the capacity to do it in your basement as perhaps one or two in the Club can, you have to farm everything out with perhaps unknown specs. Also not really an option.</p><p></p><p>Ask Patrick Godet what it would cost to supply an engine. He's a guy doing it every day. That will give you a real world perspective. </p><p></p><p>Ask the two or three groups building batches of A twin's what the engines cost them - and they are way more simple than a post war twin. </p><p></p><p>Still doesn't mean I think spending that kind of money for a "Barn Find" twin is reasonable, all it does prove is that there are still guys around with deep pockets!</p></blockquote><p></p>
[QUOTE="Robert Watson, post: 9843, member: 38"] Prosper - I agree that the books showed that it cost the Club just over 28K to build the Shadow. I also understand that all parts were supplied at cost. I have absolutley no privy to the markup of parts from VOCS or any other supplier, but if you look at the VOCS books, I'm sure you will soon see that all the cost of running the Co. is covered by the difference between what it costs them for parts and what they sell them for. I can't put my hands on the numbers at the moment but --- being very crude - and not in vulgar way! Sales say 200K Wages, rent, advertising and promotion, VOC member discounts, special offer discounts, fees, light, heat, etc etc plus a profit of 5 or 10K means maybe 60- 70K spent, so 130-140K in parts costs, and you have a mark up of at least 50% - and I suspect likely more. That means that your 28K in parts now costs more like 42K - or somewhat less if you negotiate a better discount. Not so feasible. I am not saying the markup is out of line. I have run small businesses and know what one has to do to make a profit at it. Next option would be for a man to do a one off. Unless you have the capacity to do it in your basement as perhaps one or two in the Club can, you have to farm everything out with perhaps unknown specs. Also not really an option. Ask Patrick Godet what it would cost to supply an engine. He's a guy doing it every day. That will give you a real world perspective. Ask the two or three groups building batches of A twin's what the engines cost them - and they are way more simple than a post war twin. Still doesn't mean I think spending that kind of money for a "Barn Find" twin is reasonable, all it does prove is that there are still guys around with deep pockets! [/QUOTE]
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Bonhams Auction at Stafford
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