91GL can weld. He’s a welding genius.
I agree with this statement and especially the bold section.
Saki, get it right because I am not yet at what JHM sells their headers for retail. There is still a big window until then and I have some room to play with. Now I really don’t see the need to add a portion of business to my company with welding up headers. The exhaust market is kind of a shitty place and Miltek is a great example of why. I maybe willing to make a set or two after I finish mine just I am not there yet either. You also have to remember that JHM uses 321 stainless steel which is a lot more expensive than the 304 stainless steel that I am using. Plus they use laser cut flanges that are outsourced and that costs money. So I would imagine that the cost of the headers in materials is just over two grand and the rest is labor so the $2750 that they ask for has very little margin.
Labor is expensive. I think JHM’s labor rate is $100 per hour now and most dealerships are in the $120 to $135 range. Which is pretty common since most aftermarket shops are between twenty to thirty dollars cheaper than the dealerships. Dealerships really terrrible margins too but nobody will believe me.
“get it right”?
Remind me of what I got wrong? You outlined the costs of material and did zero accounting for labor and the depreciation of equipment. Sounds like you are at JHM cost alright.
Here’s what I wrote
“its costing him pretty much what JHM charges retail”
I have spoken with the JHM guys and the fab work on exhaust makes for a shitty business. Labor (skilled) intensive, capital intensive, material intensive work requiring a bunch of space, shipping massive boxes etc and it basically needs scale to work. JHM justifiably has all but gotten out of the business, leaving it to fast intentions for example on the B6/7.
I don’t have that much time into this project. I do have time invested but not as much as you might think. Honestly I have more enjoyment lost from just not being able to drive the car while I work on this.
The depreciation of the equipment is not that bad either. Welders, band saws, and plasma cutters don’t drop off the value cliff nearly as bad as cars when you drive a new one off the lot. Some cars are so bad that they lose half their value once you drive them off the lot!
I guess getting stuff used is the way to go too. Lots of stuff you can buy used and sell for what you paid for it a couple of years later. First guy takes a hit though.
[quote=“euroswagr,post:14,topic:3901”]
Great insight…
Hey Bitch… My s4 will be done sometime next week. I have two projects cars s4 and M3 and my first house which is a HUGE money pit.
I will not stop until i hold the k04 based turbo record. period if i have to spend 7K on a custom geared trans I will i dont really care. I have all my rs4 parts ect finally in some nice bosch racing injectors 1200cc. And Im ready to get down at MIR here in january at one of the track rentals.
Cool story bro, won’t hold my breathe…why would you talk about gearing on a tranny that has went 10.8 with no problems? We have been waiting for you JHM record breaking epic build for months…or years.
I believe all the B5 S4s that went 10s were on the 01E, not to mention a dozen or so more who went very low 11s.
It’s just fine. The tranny is just a convenient excuse.
[quote=“8URV8,post:26,topic:3901”]