Ted Jannetty
TY 4 Stroke God
- Joined
- Nov 24, 2003
- Messages
- 2,010
- Reaction score
- 15
- Points
- 1,198
- Location
- Waterbury Ct.
- Website
- www.jannettyracing.com
Re: Ted and Dave
Above in Red, This is probably one of the biggest misconceptions among customers ever.
I make a pay check after all the bills are paid just like everyone else who works for someone, some times less, A lot less, because I work 55 hours and get paid for 40 , in fact I pay some of my employees more per hour than myself.
Just because we handle alot of money througout the year doesn't mean we get to keep it.
I do it for the freedom, at least that is what I thought when I started, HA HA HA.
No Really, I do it because I wanted to be able to do the type of Work I Love Most Making Cars Trucks Snowmobiles Bikes all faster than they should be legally.
Back to your question at hand.
Yes they bit the bullet and are gambleing huge here, over 10,000 invested plus countless hours of engineering and test fitting, You have got to sell a lot of turbo kits to pay for the original investment before you start making any money, I don't know exactly what the math is but I would guess around 500 kits before they break even?
Then if they get a customer with a hair across his AZZ and starts bashing the kit on the internet because of one reason or another Sales will Fall.
Customer ONLY See 5000.00 for a turbo kit and think we are making a lot of money, What they don't see is it cost us 4500.00 for the parts we had to buy to put in the kit, plus the months engineering, test fitting and testing, marketing, wasted materials etc.
They're used to be a rule in manufacturing that Retail should be 3 times manufacturing, so the manufacturer can cover his development cost, and make money, and so that the distributor whom stocks high volume of the parts can make a buck then the Dealer can make a few bucks.
Those days are Gone, Now everything is Manufacturer direct to the public and if he can make 20% he thinks he is doing well, and Cutomers think he is getting Rich.
When really all he is doing is making a pay check and feeling the glory.
Glory don't pay the bills.
Ted
GotJuice said:You guys make plenty of money on what you do and obviously are hugely knowledgeable , WHY is Northwest Turbo's the only one using the cast iron ductile header?????????????????????????????????
This is a simple kit, you can't tell me this person bit the bullet and spent hugh dollars for a mold then deosn't advertise or do no where near the business you two do...so give us the honest answer why don't you do the same?
This has been one of a couple key points holding me up on a turbo and many many other folks I talk with. There is a reason why every manufacturer runs cast iron it is simply the best for this type application. If one of you come out with a cast header I'll build my turbo then but until then it's just one of many issue with the current offerings for the ordinary Joe to not invest in a turbo set up. Don't get all bent out of shape , not trying to be sarcastic just honest and wondering the obvious question?
Above in Red, This is probably one of the biggest misconceptions among customers ever.
I make a pay check after all the bills are paid just like everyone else who works for someone, some times less, A lot less, because I work 55 hours and get paid for 40 , in fact I pay some of my employees more per hour than myself.
Just because we handle alot of money througout the year doesn't mean we get to keep it.
I do it for the freedom, at least that is what I thought when I started, HA HA HA.
No Really, I do it because I wanted to be able to do the type of Work I Love Most Making Cars Trucks Snowmobiles Bikes all faster than they should be legally.
Back to your question at hand.
Yes they bit the bullet and are gambleing huge here, over 10,000 invested plus countless hours of engineering and test fitting, You have got to sell a lot of turbo kits to pay for the original investment before you start making any money, I don't know exactly what the math is but I would guess around 500 kits before they break even?
Then if they get a customer with a hair across his AZZ and starts bashing the kit on the internet because of one reason or another Sales will Fall.
Customer ONLY See 5000.00 for a turbo kit and think we are making a lot of money, What they don't see is it cost us 4500.00 for the parts we had to buy to put in the kit, plus the months engineering, test fitting and testing, marketing, wasted materials etc.
They're used to be a rule in manufacturing that Retail should be 3 times manufacturing, so the manufacturer can cover his development cost, and make money, and so that the distributor whom stocks high volume of the parts can make a buck then the Dealer can make a few bucks.
Those days are Gone, Now everything is Manufacturer direct to the public and if he can make 20% he thinks he is doing well, and Cutomers think he is getting Rich.
When really all he is doing is making a pay check and feeling the glory.
Glory don't pay the bills.
Ted
MEAT
Expert
x2rx1 fern said:i run a front mount powderlites kit on my rx1 that was installed by jim and bob @ bpe with no problems .it was installed four years ago and i only had one problem with it,my header cracked at the top where the turbo sits .i think it was the weight of the turbo that cracked it,as it didnt have the gussets for support on this header.it was one of daves fist turbo kits.daves new headers now come with the support on them now.this summer i will be changing my header to his new 4 to 1 header as they make more power and flow alot better i probably put another 1000 miles on my sled since dave repaired my header and it is still working .also dave repaired it at no charge to me ,that is what you call an honest business man .that is why i do my business with him.he also ported my wastegate and ceramic coated my 2560 turbo this winter and i bought a double down pipe of him also .a huge difference in performance .that is why i am buying a header off of him.he knows his stuff.i think lots of cracked headers are from not tuning the sled right.
HURRICANE
TY 4 Stroke God
- Joined
- Oct 17, 2007
- Messages
- 2,092
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- 1,413
- Location
- Prescott Ont.
- Website
- www.hurricaneperformance.ca
Sometimes Ted and I have but heads,and may in the future,but I have to agree with ted on this one.My race sled,The Hurricane,is where my research and development gets tested in the real world.It takes about $50,000 to build a good race sled.I have at least $175,000 in mine.Thats because half the stuff that we tryed didn't work,so it gets thrown out instead of going to market.I think that money is never recovered.That's the sport.The buisiness is selling the products and technology that worked.
mtdream
TY 4 Stroke Master
guys, having helped NW turbos, I can tell you first hand (and I am NOT a wrencher) there is WAY more cost in these kits than you would think...
even if you have a cast header, life is not a box of chocolates...there are zillions of things to work out...
the kit from NW turbos took LOTS of partnerships and lots of relationships wtih people to get it to where it is...
i.e. original tanks were "custom" welded...and if you think plastic welding is not science...well I got news for you!!! So, I set out to find a solution for them, and Seth at TrailTanks stepped up to help, and make a tank...custom cast and made for this kit...and for most mid mount kits...his costs were substantial and risk was substantial!!!
next task...the header...Travis has a shop to die for, and was paid for by other businesses he and his family have, which made this a good option...then with teh economy struggling, there was a great casting compnay willing to work with him to get this done...and sicne Travis (NW turbos) has the CNC machines (BIG nice ones) he was able to get stuff done, that most shops could only dream of, which reduced the cost for casting etc.
then with his background, allowed them to do Flow testing (for strength of design etc.) normally this whole header process would be roughly $25-$30K...
now, you have to start working with clutching, and custom machining parts to mount the intercoooler, and move other parts around, etc. etc.
and all this is PRIOR to making Dollar ONE....this is out of pocket for Travis...without any commitment to make any money...
why do kits cost a lot? it takes a LOT to get one that works...it takes even more to get one that will be reliable...and it takes even more to have someone take it to the next level...
All along the way, while starting a company dealing with people who may or may not be good customers (not all are equal) who help you make the product better, and not jsut jump on forums and bash you without first seeking their help, or being patient that they dont get their answer in 15 minutes (as they might be out working on the kit in the field)
Sorry so long, but thought, as someone not involved with a company, I would post my thoughts to help defend this mindset that turbo builders are settign their prices like Dr. Evil...
even if you have a cast header, life is not a box of chocolates...there are zillions of things to work out...
the kit from NW turbos took LOTS of partnerships and lots of relationships wtih people to get it to where it is...
i.e. original tanks were "custom" welded...and if you think plastic welding is not science...well I got news for you!!! So, I set out to find a solution for them, and Seth at TrailTanks stepped up to help, and make a tank...custom cast and made for this kit...and for most mid mount kits...his costs were substantial and risk was substantial!!!
next task...the header...Travis has a shop to die for, and was paid for by other businesses he and his family have, which made this a good option...then with teh economy struggling, there was a great casting compnay willing to work with him to get this done...and sicne Travis (NW turbos) has the CNC machines (BIG nice ones) he was able to get stuff done, that most shops could only dream of, which reduced the cost for casting etc.
then with his background, allowed them to do Flow testing (for strength of design etc.) normally this whole header process would be roughly $25-$30K...
now, you have to start working with clutching, and custom machining parts to mount the intercoooler, and move other parts around, etc. etc.
and all this is PRIOR to making Dollar ONE....this is out of pocket for Travis...without any commitment to make any money...
why do kits cost a lot? it takes a LOT to get one that works...it takes even more to get one that will be reliable...and it takes even more to have someone take it to the next level...
All along the way, while starting a company dealing with people who may or may not be good customers (not all are equal) who help you make the product better, and not jsut jump on forums and bash you without first seeking their help, or being patient that they dont get their answer in 15 minutes (as they might be out working on the kit in the field)
Sorry so long, but thought, as someone not involved with a company, I would post my thoughts to help defend this mindset that turbo builders are settign their prices like Dr. Evil...

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