Importing TaG Packages, what is a fair price

[Todd Jones]

I'm currently importing chassis and ICA engine packages from Italy for my cousin and I to race in Stars this year.

I want to start importing TaG engines and chassis setups to sell, since they are very popular, but what is a fair price.

The package comes with the 2004 Parillia Leopard TaG motor and the chassis is my own brand. (The chassis is being manufacturered in Italy by a company that has over 20 years experience and comes with 32mm frame, 50mm axle and 4 piston braking. The frame is CIK approved and the engine is homolgated for racing.) Comes with tires, engine, sprockets, basically everything to get going, except driver and safety equipment.

I've seen the Rocket package for $4,700 on the WKA rule book, but when I call RusselRacing they give me a line about 2003 motors and chassis are only included. The 2004 are much more expensive, due to the manufacturers redesigning them and the Euro.

Given that, what would be a good MSRP to set for these.

I also have ICC Shifter Maxtor engine packages that I'm bringing in and need a good MSRP for them too.

Any advice will be greatly appreciated. I was also thinking of asking some people to test out the karts and give me their opinion.
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com

[Randolph Ferguson]

If you are the "importer" of your "own" chassis, shouldn't you already have a good idea as to how much you should be charging for an engine/chassis package. Now, if you want to know what we are selling the ALPHA chassis with 125 BM Jaguar for, feel free to contact us and we will be happy to quote you a price. This is the same package that was so dominate in the NorCal IKF National Cup TaG class. Oh, and by the way, any importer can get these engines straight from the manufacturer. You may want to contact ALPHA Karting directly at: alpha@alpha-karting.fr

RF
Team ALPHA Kart USA (France)

[Todd Jones]

I have an idea of what the name brand chassis goes for. Like I said, the Rocket from Russel Racing seems to be the most cost-efficient package on the market.

I'm realitively new to the karting world and would like to bring a high quality Italian chassis to the general public in North America. If I can't price it right, then I won't even spend the time to sell the karts to the open public. I'm brngin karts in for several arrive-and-drive series that I'm plannong on starting, along with karting schools.
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com

[Jon Andrews]

[Todd Jones]

Thanks for the info. I'm not using Parolin, due to the chassis construction. They seem okay, but for some reason I get a feeling they are cheap. Their chassis doesn't offer enough adjustment and I'm looking for a higher quality product to service everyone at a low price.

I am definately planning on going under the $5000 mark, even with the Euro trading issue. I thought I might be cutting it too close though by selling them at $4,700 for the 32mm frame, 50mm axle and 4 piston braking system with the Parilla Leopard. I was also thinking about the shifter version with an ICC Maxtor for $7,495.

Mine wouldn't be a brand name and that is where I was getting worried aobut the pricing.
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com

[Jim Russell, Jr.]

Mr. Jones,

The pricing that I quoted to you one or two weeks ago was correct at $5000. The price as advertised in the October 03 Tech manual was correct at the time. The $4700 price combination existed since November 02 when the new karts were available. A ~6% price increase when the Euro (Euro = cost) are moving ~20-25% during the same time is modest. This is not to mention any pure price increases from the manufacutrer that may exist.

Trying to find the right balance of consumer pricing and dealer profit is always difficult. The customer wants it cheaply and you want to have a thriving business. This is the foundation of free enterprise.

BTW for most US racing organizations the Leopard must have either USA cast into the side of the cylinder or the USA code laser etched into the liner to be legal. This is to controll slight variations which exist outside the US market.

Jim jr.
_________________
Russell Karting
888-KARTING

[Todd Jones]

Jim,

Thanks for the information. I would prefer to sell the rocket kart with the leopard engine, rather than go through all this mess of bringing in my own chassis. I just didn't get the feeling that becoming a dealer for Russel Racing would give me enough of a discount to make it worth my time.

I'm trying to setup several arrive-and-drive series in the Michigan and Ohio area, along with karting schools and such. I'm even working with someone who is talking with MIS to setup a karting school there, which would bring in a big draw, since they run Nascar currently on the outside loop and could run karts on the inside sprint track with minor changes.

Variations on karts: I have one place that is looking to setup 40 karts for indoor racing and another that would like 30 for indoor. The Rocket kart looks nice and I've heard some good things about it.

Before I finalize my deal with the Italian Manufacturer, it would be nice to talk with you again to see what we can do. You may notice that I am also working with someone who is selling the Rocket kart and therefor have it listed on my site. I was getting ready to take it all down by the end of the month, since rocket doesn't give much of a discount to dealers. I'm looking for more of the package deal; KT100, TaG, and ICC
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com

[Kimi Yasumoto]

Just my opinion: Right now the best is probably to buy from an already established importer rather than trying everything from scratch. Selecting the right equipment, the right company to work with in Italy and the many logistic nightmares to finally get your products in - as it is today - it is really not that great.

look around and see what is a good place to be serviced and where you can get some decent margins. Beware that right now (as Russell indicate to you) margins are not at the best of times.

Take a stroll around in chicago and see. Maybe you save yourself a lot of trouble. But if you want to be the "importer" of your own stuff, make sure you are in for real as otherwise you will waste a lot of time, energy and probably money.

Cheap is not always the best route to go. There are MANY other factors that are vital, like quality, availability, performance, response to orders etc. etc. Of course knowledge play a major role in it as well.

I believe a fair price for TAG today (retail) is probably ranging at 5,100-5,300 for chassis and engine (depending what chassis and waht engine). In the case of big names it is probably higher.

Good luck.

[Todd Jones]

Thanks for the well thought out feedback.

I've researched the Italian manufacturer and I found one that makes a really nice chassis. I even have the prototypes in my garage and in my opinion (which might not account for much, since I don't race at the national level) these handle much better than my Mike Wilson, CRG Heron and Energy karts.

I'm going to order 3 ICA packages and give them a rugged test. I like the direct-drive racing myself and it should help determine if they are really worthy or not.

Next question: I notice that none of the manufacturers give warranties on their equipment. I understand the liability on karts and especially something used for racing. i.e. even a dirt bike doesn't have a warranty. Are there any manufacturers that give a warranty?
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com

[Kimi Yasumoto]

Warranty ?

As you can imagine the only warranty is the good communication line and honest relationship you may have with your counterpart. Same people come thru, some don't.

Good luck....

[Jim Durrell]

Mr. Jones,

Doing business with Mr. Russell would be about as close to any kind of warranty that you might find in kart racing equipment. They have a reputation for impeccable service to their dealers as well as their retail customers. They are well known and respected not only in the US, but Internationally as well. From a quality and service perspective, I don't believe that you could go wrong working with Mr. Russell.

Jim Durrell

[Todd Jones]

I want to stand by the equipment, but I'm already getting worried about issues.

I just sold two brand new 2002 blueprinted engines to someone and they seized them on the third turn. I warned them about breaking the engines in, but none-the-less I feel really bad for the person. The builder said the engines were overheated and a piston and ring would fix them up.

I bought the engines cheap and didn't even run them myself. My estimate on a fair price for these would be $1,200 each since they were new. I sold them for $800 each.

What would you expect from the seller, if you werre the person who bought, and then stuck, the two new blueprinted motors?
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com

[Kimi Yasumoto]

Mr. Jones, here a free advice based on the many and very basic questions and issues you are encountering in the process of "getting into business" in karting, maybe you should consider to hire an experience consultant that can help you in researching products, margins, proper mark ups, and generally to get a grip on who is doing what and how in this market. It maybe be difficult to find the right person but you may find improbable to get the real ropes of the business on a forum. You culd get a lot of opinions, but I doubt you would get the real answers. It also looks like that you are encountering technical issues that with some experience could be quite easily avoided. In any case, wish you luck.

[Todd Jones]

That makes sense to hire someone. I'll take that into consideration.
_________________
Todd Jones
President & CEO
Myriad Minds, Inc.
D.B.A. MM Racing
www.mmracingkarts.com