profit margin..

[tamangel]

I suppose I already know the answer to this question: answer, 'whatever the market will bear'.. but thought I'd get some feedback anyway..

...or I won't get an answer as too ambiguous...or too sensitive/personal..

In essence, how much will a deuce cost from another member or business?

is there such a thing as a fair profit margin?

i.e., someone buys a deuce off GL for, say $2500. Takes it home, goes over it well, fixes what needs to be fixed and then offers it for sale at say:
50% profit: $3750
75% profit: $4375
100% profit: $5000

I would expect that expenses to pick the vehicle up (gas, lodging, meals, time, etc) would be part of the makeup.
Also labor and parts needed...

Just curious how folks arrive at an asking price..Seems that would be a great marketing tool to let one know the expenses involved but, on the other hand, maybe too personal. I have no business sense, hence my, rather blunt questions.. Not meant to put anyone on the spot, just curious..

I'm sure places like Memphis and Clark, etc..have very high percentages of profit
i.e. from Clark, their web site says base level M36 Cab/Chassis goes for $12.5K w/o winch, w/o air assit shift, etc..
If bought, say for $3K from GL (unless they get some sort of mass discount-Do they?) and sell for $15K (w/above options) then would that reflect a profit margin of 400% and an actual profit of $12K...

I realize there are a lot of variables here..but again, just asking..

Mike

 

[54reo]

Interesting question....

 

[JohnnyReb]

Well, I am not sure it is quite that simple.
What a person pays for something and what it is worth is not always the same.

I bought an excellent deuce from a member and paid his asking price which was less than he had in it.

If you pay $2500 for a truck at GL.... get home and the engine locks....not worth $2500 anymore. If you pay $2500 and discover it is a recent depot rebuild or has more "bells and whistles" then you knew about....truck is probably worth more than $2500 to another member (and also to you).

Part of the "profit" some would pay to another member would be for the risk the GL buyer takes at the auction. It has been my experience that if you buy a truck from most anyone on this site, you are going to know the pros and cons on the equipment and be able to make an informed decision on a price.

Therefore, I don't personally have any problem with fellas making a profit on a truck sold to me.....I can always decide what it is worth to me.

I have done both: bought years back from DRMO and from private sellers on this site...
Experience: 50/50 on my purchases from DRMO. 100% happy with the private deal.

just my
JR

 

[FMJ]

I am about to find myself in this position, as soon as my SF97's come back, and have been trying to determine what is fair, I would prefer to sell to members of this community, and don't want to "gouge" or ask to much for a vehicle.

 

[JohnnyReb]

Re: RE: profit margin..

I am about to find myself in this position, as soon as my SF97's come back, and have been trying to determine what is fair, I would prefer to sell to members of this community, and don't want to "gouge" or ask to much for a vehicle.

Had the same question the only time I sold to a fella on this site. I had a "regular price" but offered it to a member at a lower "member price". Of course there are additional considerations of friend's price and what is going to happen to the item.
Most people don't care what you do with it after the sale....your property...your decision.
However, if it is a unique item, rare or completely authentic then I will disclose if I am going to "work it" or otherwise modify. Have actually had some who did not want to sale the item if it was going to be changed. I can respect that; and that is why I disclose my intention. Not saying anyone has to do so..... it is just my way...

 

[TomB]

RE: Re: RE: profit margin..

FMJ,
Let me know when you are ready to sell. I am also in NM.

Also If you ever need help with a transport/recovery/ pit stop location etc.
I may be able to assist.
-Tom B

 

[Michael]

RE: Re: RE: profit margin..

I don't think anyone here is operating on a strict % markup. I think a loose rule of thumb is to double your money if you are only in it for the money. In cars as well as MVs there is such a thing as book value or retail value. If you are buying from GL to resale you need to be sure and be way below it. $2500 is probably too much for most deuces to make a good profit.

As a side issue, I would like to know how much to add for common options at both the GL level and retail level. I will start off with my ideas which are on the low side:

base truck $1500
winch 500
heater 50
hard top 100
bows and tarps 150
air ride seat 25
the new electric wipers 50
super single tires ?
anything else?

 

[JohnnyReb]

Re: RE: Re: RE: profit margin..

I don't think anyone here is operating on a strict % markup. I think a loose rule of thumb is to double your money if you are only in it for the money. In cars as well as MVs there is such a thing as book value or retail value. If you are buying from GL to resale you need to be sure and be way below it. $2500 is probably too much for most deuces to make a good profit.

As a side issue, I would like to know how much to add for common options at both the GL level and retail level. I will start off with my ideas which are on the low side:

base truck $1500
winch 500
heater 50
hard top 100
bows and tarps 150
air ride seat 25
the new electric wipers 50
super single tires ?
anything else?

Those numbers are not unreasonable. I add value for: air-shift front; dropside bed; 11.00's v. 9.00's; distance from my location......

 

[emmado22]

I think your prices for "on the truck stuff" are way low, especially for a harptop.

The bigger concern is where to get the parts AFTER the inital purchase of the truck if they arent on it already (and installation.. Even if you do it yourself, it's still costing you your time, and any other parts/stuff that you need) At MV shows I see decent take off winches (complete kits) for $1000+.... I sell the new style 3 color camo GMA tops for $200-300, and the last set of electric wipers new in the box for $300. (and no, i dont have any more)

Have you ever tried to find sideboards/troopseats for a deuce? What would yop pay for a decent set of wood ones? Fiberglass ones are just about impossible to find...

 

[JohnnyReb]

I think your prices for "on the truck stuff" are way low, especially for a harptop.

The bigger concern is where to get the parts AFTER the inital purchase of the truck if they arent on it already (and installation.. Even if you do it yourself, it's still costing you your time, and any other parts/stuff that you need) At MV shows I see decent take off winches (complete kits) for $1000+.... I sell the new style 3 color camo GMA tops for $200-300, and the last set of electric wipers new in the box for $300. (and no, i dont have any more)

On reflection, I have to agree that the value on the hardtop may be low;
However, if I understood the post correctly, Michael is looking at the value added on the truck for purchase as opposed to fair market value of the item.

Could probably part almost any decent truck for more than a person would pay for the sum of the parts as a truck. I need a couple of parts for my truck and am considering purchasing a truck from GL just for those parts. Buy the truck cheaper than just the parts only.

 

[hole]

Your geograghic location affects prices too

 

[Michael]

I was thinking along the lines of NADA values for cars with perhaps 3 values: wholesale values or what you would pay GL, average trade in or what individuals would sale to individual and full retail or what dealers sale for:

base truck ----------$1500 2000 2500
winch -------------------500 750 1000
heater ---------------------50 75 100
hard top -----------------125 150 200
bows and tarps ---------150 200 250
air ride seat ----------------25 35 50
the new electric wipers ---50 60 75
super single tires ?
air shift
dropside
anything else?

approximate totals: 2400 3300 4600

 

[emmado22]

I think it's a bit harder than that... A LOT harder...

What about miles/hours?? (and thats if the speedo/tachs havent been changed out/swapped.. A BIG IF...) Year build? Contract #? Rust, damage, tire condition? Engine that runs? Tranny that is great or clutch that slips? Depot rebuilt? Turbo or NA? Well maintained at the unit, or a hanger queen/parts donor? New paint? MWO's? Mods that brought up an "old" truck to current? Close to home, or a 2,000mile line haul needed?
Whats more desireable, a later model winch truck that has high miles, or an much earlier truck that is pristine, and had a depot rebuild with low miles with a hardtop, but a mashed tailgate?


Way too many variables to assign dollar figures to, in my opinion... I think for ONE guy looking at a handful of trucks that he's thinking about, he needs to look at the going market rate, and the qualities of each truck thats up for consideration, and go from there.. Trying to assign dollar figures to 1000's of trucks of all conditions/years/miles and everything listed above and more, it's not going to work.

 

[m16ty]

I've been buying and selling trucks,tractors,ect. my whole life. When you buy anything at any kind of auction you are taking a risk. Some things you can make big money on. Others you loose money. It all averages out to clear some money IF you know what you're doing and treat people right. It's a good way to go broke fast if you jump in too fast and don't know what you are doing. There seems to be a bunch of people that look at GL prices and then look at retail prices in magazines and such and think they can get rich quick selling military equipment. You can sink a bunch of money in a duece to get it ready to sell and if you count your time and transportation to get it home you can figure at least $1,000 right there just to get it home.
Ok, maybe $1,000 is a little much if you're not too far from the base but you get my point.

 

[m-35tom]

m16ty, right on, someone ask me the other day what i would sell my current truck for. i said $30,000. basically condition is everything. miles and hours you are kidding yourself that you will ever know the actual miles. rust can be a big problem and will get worse fast. body condition and paint is worth something. i probably spend over $3000 painting a truck. winch may add $$ if you really want one. new hardtop many $$$ so very good top on truck may add $1000 if you really want one bad. tires can add a fair amount if all are new or detract if all are very worn.

 

[AJMBLAZER]

All of this is reminding me why if I ever get that Deuce I'm either buying it from someone on here or a business that you guys recommend.

 

[emmado22]

AJM,

I disagree. It's not hard to find decent running trucks with the "options" you want at GL. You just need to know what you want, and go inspect the vehicle your looking at. Where I live, there is a company whos tag line is "An educated consumer is our best customer" I belive that applies to GL purchases.. If you know what to look for, and have some patience and the time to preview/pickup, you can get some GREAT deals. Thats what the dealers do....

 

[AJMBLAZER]

The nearest GL place seems to be Lansing or maybe over by Selfridge...so a 3 hour drive either way. I show up and it's a POS I'm out a decent amount of time and money. Now if the base was real close I could see it differently. I miss when I was in the Marines in the late 90's and DRMO was right on base. Stupid me never took advantage though.

I figure if I buy a truck from one of you guys who has a good reputation around here it saves me the unknown and the potential trouble. Likewise with one of the dealers who gets a good review from you guys. Might cost more but hey, I'm currently dealing with the "didn't research enough, bought it from the wrong place, and still had to drive for a day to get it home" issue right now.

 

[1917]

I am in the same boat.I got a M813 comming home Monday and a M35A2.Wife wants one gone.I always wanted a m35 so the 5tn is going to be sold.I dont want to rip anyone off.

 

[DDoyle]

I've written a couple of books that include values (prices) of military vehicles - and I've bought my share of trucks - so I'll consider myself qualified to chime in here.

First of all, if you want a top-quality (as in show-grade) restored truck, by far the least expensive place to buy it is from another collector. None of us keep an accurate accounting of the parts we put into a truck, and since it is a "hobby" - the labor is "free".

That is not the case for a buisiness. If you look at the percentage of per-item mark up for the big guys (like Memphis Equipment) - their margin may look very high. Having spent thousands of hours there (and thousands of dollars there), I can tell you that their overhead is HUGE (espeically at the Memphis location). Property taxes on a city block in downtown Memphis, payroll, insurance, and benefits on fifty employees, a dedicated semi and driver, a shop building that can accomodate, easily, a dozen or more of the largest MVs the US Army has ever fielded, carrying costs on hundreds of trucks, and millions of parts. One summer they cut up over a hundred 6x6s - and you couldn't really notice that any were gone. All this consumes a LOT of money.

When I decided I wanted a wrecker - that is who I bought it from. I could have bought a truck elsewhere, that would have theoriticallly been cheaper. But, I didn't have time to restore it myself - I wanted to spend my time driving - I wanted certain features (heater, hard top, convoy light, all the OVM) and they could deliver a truck EXACTLY like I wanted, with a warranty.

Since I have so little time off from work - I don't consider my time off "free" - I am choosing to spend my time playing rather than working - so it costs as much per hour for me to pull a wrench on a truck as I normally make in an hour. I could spend this "money" by buying the finished truck I wanted - or spend it in off time building the truck I want - the difference is by buying from the dealer, from the first moment I spent money I had the finished product, rather than spending money (time) for several months before I got what wanted - and then there would be no warranty.

Its been years since I studied this, but IIRC in the typical retail business a 40% per-item margin yields the business something like a 5% net profit annually. So, if your business is trucks, one you buy for $1500 should sell for $2500 - and at the end of the day after overhead you'll have $125 profit.

Regards,
David Doyle