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Re: 1000 hrs--ramblings--math

To: "Carlos Cruz" <healey3000bn7@yahoo.com>, <healeys@Autox.Team.Net>
Subject: Re: 1000 hrs--ramblings--math
From: "Frenken, Eric" <efrenken@lctax.de>
Date: Tue, 1 Feb 2005 16:35:00 +0100
Carlos, I can follow your maths, but nevertheless that averages 12 cars a year 
...

Eric            BT7
Heinsberg/Germany

-----Urspr|ngliche Nachricht-----
Von: Carlos Cruz [mailto:healey3000bn7@yahoo.com]
Gesendet: Dienstag, 1. Februar 2005 16:00
An: HealeyBN7@aol.com; steveg@abrazosdata.com; healeys@autox.team.net
Betreff: Re: 1000 hrs--ramblings--math


Dave & others,
 
6,000 - 8,000 man-hours per year - following Dave's assumptions below.  When 
Tanner (or anyone for that matter) says they do 12 cars a year, odds are they 
don't mean they are tearing down and rebuilding 12 complete cars in a year.  
What I mean to say is that on January 1, he's not starting fresh,  he has 
work-in-progress that carries over from the previous year.  
 
Say 2, 3 possibly 4 cars in near-complete stages.  Cars that may only require 
150 hours or less to complete.  Add that to eight or so new projects during the 
calendar year and you can easily see 12 new cars with 4 FTEs and a little 
overtime.  Especially if he outsources the paint.  
 
Odds are he begins more than 8 new projects in a year.  Probably more like 
10-12 knowing full well he won't finish all in one calendar year.  So he begins 
in the next year with 2,3 possibly 4 work-in-progress projects.
 
Seems to me the numbers add up just fine - at least in a reasonable ball park.
 
Cheers,
Carlos Cruz
'60 BN7 - The Mistress
 
 


HealeyBN7@aol.com wrote:In a message dated 1/31/2005 8:49:07 P.M. Eastern 
Standard Time, 
steveg@abrazosdata.com writes:

He does 12+ cars per year with 2-3 guys including himself. I'm sure that
equals less than 1000 hours per year. According to him, every car goes to
bare metal. He says in BJ8s there's enough money to make it worth tackling
fairly moth-eaten examples.


Steve's comments made me think about how much Tanner might make in a year. 
Wild speculation follows, just for fun:

let's say he does 12 cars
1000 hours per car for starters (just for discussion)
2000 work hours per year, per person, x lets say 4 people who really know 
what they are doing - craftsmen
that's 8000 man hours available
and 12,000 man hours required for 12 cars
so, somewhere he is making up time - maybe 750 hours per car
say he sells the cars at ..... $60k per car (they can't all go for $90k)
that's $60k x 12 cars = $720k income
then he has to pay 3 people full time - let's say they get $50k a year - 
$150k
then he has to buy the cars to restore - a guess - $10k per, times 12 = 
$120k (maybe less)
plus parts, rent, lights, insurance, transportation, advertising, misc = 
$250k (big guess)
So - $750k income
and $520k expenses

He clears maybe $220k a year. So, he has a viable business. With fewer 
people and less hours per car, he makes more. And he probably works 3000 hours 
a year in reality! He's probably bustin ass every day. He must like 
Healey's as much as we do.

Dave
61 BN7




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