That is essentially what I am trying to do. Basically, it would accomplish everything that a regular guy would need to do. A nice simple kit that is all plug and play. I know if there was something like that in the market right now where as soon as I can get it on my door step I can pull it out and get everything back in, 5 hours or less and have my truck back I would buy it. I do like the simplicity of the various efuel kits. The price I do not like. $1k for stuff that I can buy if I know how/what I need to do? The guys who have money are obviously going to go with one of those guys simply because they have money, and want the name brand. So that wouldn't be my market. The good thing about this that can lower my profit margin is the fact that 1 its for an assignment, 2 I want to do it for my truck so essentially I would be doing r&d for myself and then just make several repros of what works for me, three in college and low on money but high on time so I can use that to my advantage.

With the right deal making and creativity $500 would be feasible, more than likely somewhere around $650 as that is a pretty good profit margin for hooking up hoses and wires. It would depend on how fancy I got with my mounts etc.

Just wanted to see if there would be a market for this type of thing and it does appear that there is. Stay tuned, will hopefully get something going here shortly.

 

Right on!!

 

yeah i for sure would be interested. I think 5-600 is what guys are investing when they gather all the stuff them selves to upgrade to e-fuel...

 

A couple things to consider comes to mind:

1) What qulity of products do you want in the kit? Good stuff that will last a long time, or cheap stuff that will fail and the customer will have to come back to you to buy more cheap stuff, thus continually raising your revenue?

2) What profit margin are you after?

These 2 are key points, at least for me. I've been trying to find time to put together a fuel system package for years now, but I keep getting hung up on these 2 simple things.

You will not be able to put together a complete, quality kit AND sell it AND make a profit for $500.
If you want to use good quality parts, figure $500 - $600 just in materials.
There's a reason the other systems are $1000.
Businesses need to make money, and most want to sell a good qulity product. A good product will get a customer to come back to you when they want to buy another good product.
Cheap parts are good to keep selling cheap parts and making money that way, but it won't do any good when you want to sell them other things. This might be irrelevant for your project since you're only selling one thing, but it's not a good approach in the real business world.

If you could sell a complete fuel system for $700+- they'd sell very well.
I have not done this myself becasue I can't justify spending $600 to only make $100 for all of my time sourcing parts, puting the kits together, time spent making the sale in emails and on the phone, doing paperwork, packaging, credit card fees, business overhead, taking the tech calls to help customers actually get them installed, help customers when a product is dead when they get it (yes, even good stuff has issues in mass production) AND still show a profit after all of that. Then I've also tied up a lot of money to only make a few bucks, it just doesn't seem worth it to me. Profit margin needs to be higher. $1000 system is NOT unrealistic.

There's always a way for a diy guy to build their own cheaper, so don't listen to how 'cheap' you can build a system, you won't be competing with those guys.

Hope this helps, and let us know how it turns out.

 

I plan on selling mine for 700-800.

At any less, the effort isnt worth the pay.

Its at least 500 for parts. Plus you have to look at documentation, presentation and packaging.

If i have 50+ hours indevelopment, thats a lot of time to only make a dollar here and there.

I planned on offering options also.

 

Thats what i was trying to say.

The 100 - 200 profit is okay for me, but jim already has stuff to do. It fits into my buisness model already though.

I think some of the kit prices are too high for what you get, but profit is what im after.

But not gouging my friends and fellow enthusiasts.

I always market products with a profit, but never to get rich quick.

Id rather sell 30 kits for a 6,000 profit than 10 kits for 4,000 profit.


Thats marketing, sorta. You either wanna get your product and name out, or just turn a profit.

All in the attitude, look at how joeys stuff sells.
His everyday stuff is very reasonable.
Your fancy items will have a bigger price tag, more work is involved.

If your just throwing parts in a box and a few sheets of paper for high cost, where is my reach around at that point, cause thats how id feel opening the box.

 

Good info you guys! Reps sent fa SHO!

 

I'm doing e fuel right now and the pump, pressure regulator, pressure Gauge, filter bases, and filters is around $350ish. Still gotta buy fittings hoses clamps and wiring I don't see any profit in a $500 kit maybe $700 to make a little. If you got serious with it maybe you could buy items in bulk and lower build cost and up profit

 

I appreciate the advice sir!

 

Something else to keep in mind is warranty. Make sure the parts your using are diesel compatible. For example, if you decide to use fuelab regulators, get in touch with them and make sure the part your considering is warranted for diesel use. If it isn't, warranty will come out of your pocket if someone has problems within your warranty period. Same goes for the lines, pump, etc.

If you get ahold of a part that is not diesel compatible and you don't know it, warranty parts will be on your dime every time there is a failure and with parts that aren't compatible for our fuel, failures could happen quite a bit when it comes to pumps and regulators. Also, if the parts are or are not biodiesel compatible will need to be mentioned. If the parts aren't biodiesel compatible, you won't be able to warranty it when used with biodiesel.

 

I just had a "kit" put together by the fine folks at Stricktly Diesel in AZ, and what Jim said about the componants is almost a quote of what Dennis Schroeder told me. There is a large differance between A grade and B grade parts as for price and reliability. There is also differances in how complicated (RE; safe) you make the pump control operation.

 

A few more things come to mind.
It's not just a matter of saying parts will cost me $500, I'll sell for $700 and make $200 per sale!
See my above post. Lots of extras and more time that you expect. $75 profit per sale I bet will be average at your numbers.
Do you have a sales and tech phone line people can contact you 6 days a week? You know guys only work on stuff and tie their truck up at night, right? (don't we all!!).

Also, 30 kits for $6000 profit. Do you have the finacnial means ($15K) right now to purchase parts to build 30 kits? You should, you'll get better parts pricing (power in buying in volume) and make more money.
If you think you'll build a few kits at a time with what little money you might have put aside, give it a try. You better have kits on the shelf ready to ship. I speak from experience. If you can't take a cc number and ship a product TODAY, the sale is gone.
That changes somewhat when you have a unique product, and or a really smokin price, so you might get a way with it.

I'm not really targeting Williams post above, just a few more pointers.

 

I'm a little confused now... is this a "project" / assignment for a school class (like my summer vacation or my fantisy truck build) or is this a "business endevor" you are thinking of persuing?
If it is really a business endevor than I agree w/ all of the advice you have been given in regards to the big business picture, but if it is a school assignment "how to get DIY truck guys to buy a complete system" then I have to go w/ my original post for $500-$700 as most DIY guys will spend a crap load of time to save a few $$$ because of their budget, ability, or willingness to wait & look (their hobby).

 

Both. The goal is to get the student to understand how to sell and market a product. I could have done something simple like selling lemonade or some **** like that, but I chose not to.

 

Did this kit ever come together?