Hi Chris,
I guess your not going to understand what I'm trying to say. The price for a
barrel of oil is about $60. I don't know anywhere where you can buy a barrel
of gasoline for $60. The same is the case with the metal market. You are
looking at the raw commodity price not the finished sheet cost. Once again,
you cannot buy 6061-t0 sheet used for the forming of rim shell parts for
1.25/lb.PERIOD. Call your local metal supplier and ask them what your price
would be on a sheet. Weld is in a different market. Why would I even want to
compete with a company that large? It doesn't make any sense at all. Sit
down and work out the numbers and you will quickly realize that it is a very
difficult market to be in. Big numbers sometimes mean big headaches. I have
read some of the other emails going around right now and the fact of the
matter is that racing is expensive. The more you try to control the costs
the more you back yourself into a corner. I have formula fords and the class
has nearly killed itself by trying to keep the costs down. We should have
switched to the same motor the Brits did in 1993. We wouldn't be having the
problems we are now. Grandfathering in changes is a good way to go. It gives
racers time to prepare and budget for the changes. A move to 13" wheels
would make everyone's life easier. I'm sure that there are lots of other
areas that could benefit from a change. Just be careful that you do not turn
these cars into mini rockets. Keep the speed the same otherwise it changes
the purpose of the class. It is supposed to be an entry level recreational
class. Make the class easy to get into and the racers will come back. If
there are to many tricks of the trade required to compete then you will only
get the diehards racing, and at the end of the day that isn't good for the
sport. Just my opinion.
Daryle
Kodiak Motorsports Inc.
----- Original Message -----
From: "Chris Reinhardt" <[EMAIL PROTECTED]>
To: <[email protected]>
Sent: Monday, March 12, 2007 4:48 AM
Subject: Re: [F500] Kodiak Prices
My first question would be, what are you importing and why? I would be
buying rim halfs from Weld, and cutting the centers myself. 2nd, why
wouldn't you go after sprint cars and cash in on the 1000's cars being
raced?
I quoted the pricing on the NY Merc exchange that shows that the price
of aluminum has not increased as much of you've stated. Steel and
stainless steel is another story.... I'm a welder by trade, I stay up on
the prices of material..
CR
Daryle Redlin <[EMAIL PROTECTED]> wrote:
Hi Chris,
I have no idea why Weld hasn't changed there prices. I have heard that
they
were in serious financial trouble and were bought out by American racing.
Just because they don't react to the market doesn't mean I'm in the wrong
to
do so. I don't know what alloy they use for the smaller wheels, I looked
at
some of the retailers that sell the product and the alloy used is not
stated. 5000 series alloys are way cheaper and do not require heat
treatment
or secondary spinning. Its not as strong though. Maybe they just use the
left over pieces of there larger wheels to make the small ones and they
don't calculate material costs the same why. Who knows. Your statements
were
wrong in that you stated you could buy 6061 aluminum for 1.25/lb. You
cannot. You also didn't respond to the currency issue. It has a huge
effect
on the retail price. F500 cars are not toys. They are serious race
machines.
The loads and speeds are high and I certainly wouldn't be risking my life
on
a set of chopped up golf car wheels. Sprint cars are a totally different
type of race car, for one thing they only turn left. It could be possible
that you could cross something over but as a manufacturer we certainly
would
never recommend it. In your subsequent email you stated that Weld makes
1000's of these wheels. That is exactly my point, if you make lots the
cost
can stay low. I don't think that we have made over 100 f500 wheels in the
last 8 years. The cost is what it is. I might add that the equipment
required to make these wheels is big money. Leifeld spinning
machine,800,000US+, Mori seiki NH4000 cell, 500,000+, all the heat
treating
equipment 250,000+, polishing and assembly equipment 100,000+. Just to
cover
the interest on these machines we would have to make hundreds of f500
wheels
every month. We don't. You may not like it but badmouthing suppliers is
not
a great way to encourage them to stay and offer products for you market.
Take care.
Daryle Redlin
Kodiak Motorsports Inc.
Original Message -----
From: "Chris Reinhardt"
To:
Sent: Friday, March 09, 2007 6:55 PM
Subject: Re: [F500] Kodiak Prices
Daryle, the market price is reflected the retail price, Aluminum is a
like
gold or grain or whatever, that's life in a capitalist country....
Why hasn't Weld Wheels raised their prices accordingly?
CR
Daryle Redlin wrote:
Hey Chris,
I will buy all the 6061 aluminum you have for 1.25lb. The raw commodity
price is not what you pay from the suppliers. Get real. If you think it
is
so easy to build these wheels and that our prices are two high, go ahead
and
buy all the equipment needed to make them and supply the market. Weld is
a
huge company and cannot be compared to a small custom builder. Go and ask
Weld how much it would cost to get a set of custom f500 wheels made. They
probably wont even do it and if they don't, then ask how much it would
cost
to have them special order some. I bet it will be plenty more than we
have
ever charged.
Daryle
----- Original Message -----
From: "Chris Reinhardt"
To:
Sent: Friday, March 09, 2007 2:56 PM
Subject: Re: [F500] Kodiak Prices
Just an FYI, I looked at the NYMEX exchange, the lowest Aluminum has
been
in the last couple of years is about .80, and the highest it's been is
1.25. I guess all that quality control has raised the prices way up.....
Guess I'll stay with those ugly Douglas's...
CR
Daryle Redlin wrote:
Just to add my two cents.
The exchange rate two years ago was 1.57 to the US dollar. The exchange
rate
today is 1.14 to the US dollar. That means that the US buying power went
down
by roughly 40%. At the same time the cost of aluminum went from $1.85/lb
to
about $4.00/lb. Sorry about the increase but we only react to the
market.
Daryle
Kodiak Motorsports Inc.
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