I talked to someone close to the process and the reason for the higher staring bids is because GP is only getting 24.9% of th final sale. GL gets a much higher percentage.
So if GP has to move a truck to a location to sell it, how much would that cost? We all know the cost to ship a truck runs about $2.50 to $3 a mile. So if they have an m939 to move 200 miles, they are already down $500-$600 on moving costs. Then they inspect them, which costs man hours. They have to store the. Just like GL did, which has a cost. Sometimes the DRMO may move them for GP, but I can't find anything in the contract that makes that a requirement.
So if they get $4,000 for a truck and have $1000 gross profit, their net will be less than $300-$400 a vehicle; not including long term storage costs and general overhead at manned and unmanned locations. Will they even make $100-$200?
So it looks like these guys may have higher costs as they get started. Maybe they can rent lots on bases or near bases to save shipping costs? Maybe they can reduce the cost of inspecting and storage? Remember, they have to store some items for months before they get sold. What does it cost to store a truck each month?
I can't see how GP is going to make much money.
I looked over the starting prices and think most things will sell above the prices. Yes, there won't be anymore $100 m105's which is very disappointing. Forget the $2000 trucks that don't run. I'm disappointed, but I really don't think it will change 95% of the sales.
Bill