Well, any business for that matter. It always cracks me up when people look at the cost of something and say that business must be making SO much money. I also feel sorry for every small business I see open up in a cheesy location and my first thought is, did they realy think this through because they will be gone in the first year. Here are some line items to consider when planning your camper manufacturing business.Realistically, how much income will I bring in. Let's say 100,000/monthNow subtract:Cost of goodsAccounting and leagalComputer expenseLiabilty insuraneLicenses and taxes (not income tax)Payroll serviceProperty taxRent or Mortgage paymentAdvertising ExpenseCredit Card expense, unless you just take cash or checks.Maintenance and repairs of your facility, stuff breaksOffice suppliesOperating Supplies, toiliet paper, glue, soap, rags, yada yada.WAGES to your employees.. Minimum wage is going up in CA..Payroll tax expense, while you pay fica, so does the employer.Small partsSmall tools, large ones can be depreciated.TelephoneUtilities Workers Comp insuranceBusiness Loan(ammortization) and InterestTotal Expenses 90,000Income $100,000Expenses $90,000Net Profit $10,000But wait, that $10,000 is not yours. Depending on how your business is setup, you still have to pay Income Tax to the Fed and State. Let's take 30% as an axample.Cash in my pocket, $7,000 for $100,000 in sales. These are just semi random numbers and the categories may be more or less for your camper manufacturing business. If you are considering opening a camper manufacturing business, please think of every penny in your expenses. It's not as simple as rent, labor, and cost of goods. Please consider realistic expectations when you are planning your business. Just ask JNET I think it is that has his thread going of building his own camper, it will be top quality and a top price!I am heading out in the camper this afternoon and will not be posting till Monday again.

So true, so true. We own a small business. People tend to do a little multiplication and declare "you must be making a ton of money". Little do they know what a small fraction of that actually ends up in our pockets after all the expenses you noted.

Yuup...me too! Fuel, feed, vet supplies and services, supplements. The list continues.

Very true. And this is why I no longer have a small business and am back at Corporate America.My grandfather during his life owned 2 gas stations, a trucking company, and a chain of dry cleaners. All separately, mind you. He was first to tell me "do it" when I wanted to leave the big company and go out on my own....he was also the first to tell me I'd have no vacation, no weekends, etc. He was right.Thing is for me, I did try....and am so glad i did. I sold our TT, two classic muscle cars all to fund the business...and received in return a business loss but VALUABLE experience. By the way, I am now paid "more" for that expierence in corporate america....and have time for a new TT and camping once again!

It costs me $653 per day to stay in business. I have been very fortunate to keep my business going through out all these years. I always get a kick out of "those guys" who look at a part and say "I could build that for half the price." You sure could but I'm not running a charity I'm running a business to put food on my table. I also get a kick out of customers who find my bids higher then the guy working out of his back yard with no insurance or a license. They tell me I'm way over priced...but they always seem to call me when the other guy doesn't show up when they give him a deposit, I could go on but Ill stop....

Raise your price. Or raise your income by increasing production. Find better methods to do more with what you have. Become more efficient. Cut you spending. A lot of those items are NOT monthly expenses. And can be amortized over a broader time line. You need a better accountant and tax professional.Ask yourself a lot of CRITICAL questions. Answer honestly. Lots of people want the good life too soon. Expect to pay your dues.

So you want to open a truck manufacturing business?

17 Replies

free_radical
Explorer
Oct 17, 2013
Was considering just such endeavour,most likely using aluminum as its very light.

What Id like to know is how much would materials cost for building an aluminum TC such as the old Avion,and what gauge thicknes would one need to use?

Maybe someone experienced with metal working could chime in,thnx..
69_Avion
Explorer
Oct 17, 2013
If the RV manufacturing business was so easy, there would be more companies doing it. I don't complain about the prices, my issue is the overall lack of QC on some brands. It really don't take that much longer to do something right, but fixing it later can be very costly. The RV industry reminds me of the US auto industry in the 1970s, before they saw the light and became very competitive with great quality control.
As far as starting a camper company, I would go broke real quick with the way I would want "my" camper. LOL
redink
Explorer
Oct 16, 2013
Wow. Happy to hear there was some response to this post. I just got caught up from the extended weekend off and work.

My screen name was penned when I had changed internet providers years ago. I could not get a simple email name that wasn't taken and happen to look up and at cup full of ink pens on my desk. The first one I saw was a red tipped bic pen. I tried redink@ and it worked. I wasn't exen thinking at the time that redink ink was bad, but it does keep me thinking everday.

I was fortunate enough to help build the business then purchase it from the person I worked for. I was profitable from day one, but had to pay for it, well the 4 different locations.

As Vulcaneer points out, some of those expenses are not monthly expenses, but the majority either are, or are broken down monthly for an accurate monthly P&L. I have to use a propritary computer system, monthly payment. 34 employees over 4 locations.

I was not complaining on this post, only responding to a negative comment I saw about camper manufactures making so much money and in hopes of saving just one person from making the mistake of not including everything they could possibly think of as an expense when thinking of starting a business. I just grabbed a P&L and started listing major line items, of which I did skip the things like personal health insurance, life insurance required by SBA, and others.

Have fun and enjoy life, you only live once.
sleepy
Explorer
Oct 11, 2013
I have built a totally self contained cabover camper... I paid the single purchase price on every componet...

My new Lance 1191 was a bargin.

Sleepy
sleepy
Explorer
Oct 11, 2013
Very good thread...the only silly post: when someone says get out of California.

It isn't that simple

California might be the best place to manufacure... if thats where the market is... shipping is a very large expense....

-----------------

Some believe that having few employees by staying small will cut the costs.

The truth is the bigger you are imparts some advantages.

For example: volume purchases by truck camper manufacturers

It might cost $800 for one RV furnace

It might cost $600 each for 50 RV furnaces

It might cost $500 each for 100 RV furnaces

It might cost $300 each for 500 RV furnaces

It might cost $275 each for 1000 RV furnaces

It might cost $150 each for 5000 RV furnaces

What Truck camper manufacturers fit each catagory? Lets look at one.

Lance manufacturered 5000 TC's a year before the crash with 500 employees.

In 2009 they had 100 employees working 36 hours per week... how many TC's were they manufacturing.

... they were smart they increased volume by adding travel tailers. And started getting volume prices again.

Now lets look at Snowriver:

Lets say that they were manufacturing approximately 100 TC's per year...

Bob Mehrer told me what he did to keep costs down: He and several other small manufacturers joined forces and bought in bulk... then divided the componets up. (Bigfoot was not one of the consortium)

It worked pretty well. They could by at the 1000 unit price.

The bad news... as each Truck camper manufacturer went out of business Bob's costs went up.

A week before Snowriver went out of business Bob thought he and his shop forman could survive the winter and make a comeback... when he ran the numbers the increased costs of all of the appliances, and other componets went so high because he was only able to order a few at a time that Snowriver went under.
chevor
Explorer
Oct 11, 2013
I would say step one is to get out of CA.
Vulcaneer
Explorer
Oct 11, 2013
With numbers like that, I can see why your screen name is redink.:W
steve68steve
Explorer
Oct 11, 2013
Sore subject for me.

You forgot $1200/ mo for medical insurance - for an 80-20 policy with a $5000 deductible.

The authorities will swoop in to pick you over for permits, licenses, fees, taxes. Employees will flake on you, you'll have some impossible-to-please customers try to ruin you. You'll be numb because you've been working 7 days/ week, 12 hours/ day for years.

Then, thru the miracle of depreciation, you can wind up losing money and still owing tens of thousand of dollars in federal tax. When your savings are wiped out, you'll have to re-mortgage your house to avoid having the gov't seize your assets.

And $100,000/ month? We grossed that our first YEAR.

The American dream is dead. It's been regulated and taxed out of reach.
Led_67
Explorer
Oct 11, 2013
redink wrote:
Well, any business for that matter. It always cracks me up when people look at the cost of something and say that business must be making SO much money. I also feel sorry for every small business I see open up in a cheesy location and my first thought is, did they realy think this through because they will be gone in the first year. Here are some line items to consider when planning your camper manufacturing business.

Realistically, how much income will I bring in. Let's say 100,000/month

Now subtract:
Cost of goods
Accounting and leagal
Computer expense
Liabilty insurane
Licenses and taxes (not income tax)
Payroll service
Property tax
Rent or Mortgage payment
Advertising Expense
Credit Card expense, unless you just take cash or checks.
Maintenance and repairs of your facility, stuff breaks
Office supplies
Operating Supplies, toiliet paper, glue, soap, rags, yada yada.
WAGES to your employees.. Minimum wage is going up in CA..
Payroll tax expense, while you pay fica, so does the employer.
Small parts
Small tools, large ones can be depreciated.
Telephone
Utilities
Workers Comp insurance
Business Loan(ammortization) and Interest

Total Expenses 90,000

Income $100,000
Expenses $90,000
Net Profit $10,000

But wait, that $10,000 is not yours. Depending on how your business is setup, you still have to pay Income Tax to the Fed and State. Let's take 30% as an axample.

Cash in my pocket, $7,000 for $100,000 in sales. These are just semi random numbers and the categories may be more or less for your camper manufacturing business. If you are considering opening a camper manufacturing business, please think of every penny in your expenses. It's not as simple as rent, labor, and cost of goods. Please consider realistic expectations when you are planning your business. Just ask JNET I think it is that has his thread going of building his own camper, it will be top quality and a top price!

I am heading out in the camper this afternoon and will not be posting till Monday again.

You forgot to mention a catastrophic loss or an injury that could put you out of business BTDT but I fought tooth and nail to the end and now 5 years later I am sitting at a pathetic job but still close to what I love.
hammer21661
Explorer
Oct 11, 2013
Eycom wrote:
No matter how you cut it, when you work for the other fella, he buys you at wholesale and sells you at retail and he keeps the spread.
and sometimes he sells you for less then he buys you for and eats the loss.