Too expensive to make a profitable turnover?


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Rich (Staff)
Rich (Staff)
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Hi Sean,

The £600.00 estimated cost was for an area of 5m2; a Fiat 500 bonnet is nowhere near 5m2 even accounting for an inner and outer skin. The upper moulding is less than 1m2 so you would be looking (even with the frame) at an approximate cost of £120.00 for the materials alone - not accounting for bagging consumables or tooling costs.



The other thing to bear in mind is that if you are purchasing larger quantities then volume discounts apply so as you increase in your material requirements and the business needs start to grow then these unit prices will start to fall.

These are all best placed guesstimates as it depends on the exact size of the bonnet; how many layers you need to use; what the intended end use is; etc. etc. but in terms of basing your figures for profitability, I would start working at around £120.00-£150.00 per square metre area for your material requirements - for a really sturdy bonnet with soric core, infusion epoxy and 2 carbon skins either side of the core and then a basic 'spider' frame on the underside.

(all prices are ex.VAT)
Edited 9 Years Ago by Richie
Shane1985
Shane1985
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Hi Warren,

Cheers for getting back so quick.

I factored in that I would start seeing a return after the initial few pulls however, my point is that even if you do have the mold, the bonnet would cost £600 in core materials to make. And so if the market price is £600 for the bonnet how would you expect to see a return?

Obviously I am using the bonnet as pure example, but wondering how much of this theory extends out to other car parts.

So to be clear, I am looking at how much parts will cost me to make and sell IGNORING the fact that I need to make the mold (lets just say I already have the mold)

I really want to get moving on this but I just need some backing here.

Cheers

Shane


Shane
-Carbon Amateur-
*Never give up!*
Warren (Staff)
Warren (Staff)
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Hi Sean,

There is profit to be made for the shrewd and clever businessman but you do need to think ahead.  Setting up costs of a business are always going to be a big initial expenditure you cannot avoid.

With producing parts, you realistically need to factor into your part cost, the cost of the mould. This is why many composites companies will want a minimum order quantity before commissioning a new mould for a part.

Initially, for example, with a bonnet, the mould costs will wipe out any chance of a profit for making the first couple of carbon parts. However, thereafter your costs come rapidly down once the mould is "paid for".   A mould can last for hundreds of pulls.

It also depends a fair bit on the market you are aiming to cover, eg motorsport, specialist high end cars, modified street cars, etc etc, all of which will have different expectations and requirements.

Plenty of people make a good profitable business from composites, and plenty also fail. 

Warren Penalver
Easy Composites / Carbon Mods - Technical Support Assistant
Shane1985
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Hi All!

Me again.

So after a while of planning,  arranging the workshop and almost placing myorder @ £2,000  with easy composites. Ithought I would do some workings out (yes I should have done this before)

So my plan was to make and sell various car body panels andsell them at a cost with a small profit margin. I estimated that the FIAT 500Bonnet in the video would cost about £350 to make, but speaking to easycomposites, it actually costs £600 in core materials.

Now bearing in mind that Carbon bonnets sell for around the£600 mark, I’m wondering whether I need to revisit the drawing board andactually work out if this is a viable business or not?

What are your thoughts? Does anyone on here make parts andhave a good turnover with a margin for profit?

Cheers all

Shane


Shane
-Carbon Amateur-
*Never give up!*
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