What do you think PT's profit margins are?

[davesisk]

What do you think PT\'s profit margins are?

Just curious. Ya know, before I found a PT locally, the thought had entered my tiny little mind of buying the plans from www.cadplans.com for the CADTrac (which looks suspiciously like the PT) and attempting to build it. The same company that sells the plans also conveniently sells a so-called "everything kit" for about $6K, you do all the welding and assembly. (Boy, talk about me being over-confident sometimes.../w3tcompact/icons/smile.gif). I'd imagine it would take a newbie at metal fabrication probably 3-6 months to do it (and probably a 2nd kit after practicing on the first one!) Given that the least expensive PT sells for $7K, it seems like a no-brainer to buy the PT. (Of course, that doesn't include any attachments, but to make it equivalent to the $6K kit, you'd need the $300 bucket.) Glad I found a used one!

I'm sure the $6K kit from MetKit reflects a handsome markup, but how much do you think it actually costs PT to build the $7K 422? I just wonder how much profit they make off each machine. (Not really for any reason, just nosey about it I guess.)

Also, since there's apparently so many home-owners who own 422/425's, I wonder if Power-trac will ever introduce anything a little smaller and less expensive (like in the $3-4K range). That's about the same price as a decent lawn tractor, and even with a lighter-duty frame and lighter-duty attachments, it could still do quite a bit of work over a simple lawn tractor. If they did, I'll bet they'd sell quite a few of them. Just my opinion, however...

Dave

 

[bubenberg]

Re: What do you think PT\'s profit margins are?

Dave, similar thoughts went trough my head, some two years ago ... not about profit but building vs buying. so i went to see john at cdplans/medkit and all his neat toys. the stuff works, is sturdy and most people are happy with their finished projects they bought and build.

during my visit i did mention to john about the pt plant just about 60 miles to the south west of him and he skirted the issue. so i made another trip, this time to tazwell. knowing myself too well, i then returned to pa and did some talking to my mechanic and sitting in the "refrigerator".

subsequently, i called john at cadplans back and he, at an additional cost, changed the speed aspect and reduced the yet small lift capability even more to accommodate the draft ability of his articulated vehicle. after talking to some more people and especially kunz engineering, the acrease mower designer, about what to use to pull their mowers, i decided to buy a pt 425.

The reasons are: lift capability, easier getting in and out, speed for mowing and me being a lousy welder. other reasons, as you evaluated so well, the original cost is less then $900.00 (2000 prices) dollars difference between a cadplan/medkit AND a pt. with a pt you have a finished product AND many attachments AND warranties on fabrication and engine.

by the way the same thing holds true for the comparison of a lackender "baby boomer" back hoe for the pt 425 and to self build one from cadplan.

as we are speaking our major push is to be ready for the leaf season. after we have purchased a loose material handler bucket from ramroad, our next purchase will be a lackender bay boomer back hoe. we are adapting a leaf rake from jerco to a pt quick attach plate. with this gizmo we will be pushing large leaf piles to drive ways or road curbs to be sucked up by our street legal dump trailer. no more tarping WET leaves all over creation. the the quick attach plate left over is going to be used to push an 11 hp "little wonder" debris blower across the country side.

pt is the answer for us and some day we will have a 1800 series machine to stop using these walk behind mowers on these steep hills.