XPCamper goes out of business, files for bankruptcy?

[luthj]

Its critical that low production volume semi-custom producers focus on reducing labor to build their stuff. Keeping the options limited to a certain number. Using CNC, patterns, smart assembly and design, etc. Heck, even changing to pre-finished materials can cut 10% off the labor costs.

Focusing on reducing setup time between tasks by doing batch work, etc.

Either that or go the EarthRoamer route and just charge mega $$ for options.

Called Veblen goods. These products have an inverted demand curve, where demand increases with price.

 

[plh]

And here’s the Catch 22 with that....if XP couldn’t make enough profit to stay in business previously while paying those supposedly lower wages (because the market was just too small for their hugely expensive campers?), how is the new company going to become profitable paying its craftsmen these higher, albeit necessary, wages?

This is true. This just means that the XP was under-priced for the true cost, or the original company didn't have enough capitol resources to ramp up to an economic quantity and cover losses during the ramp phase.

 

[fireball]

Weren’t they selling at close to six figures with a lengthy wait list? I can hardly believe that it was underpriced.

 

[luthj]

Other full custom RV type builders typically start in the low 100s and go up from there. Advance RV for example builds full featured RVs of similar scope. They often get near 200k, with the highest end units around 250k IIRC.

 

[rruff]

This is true. This just means that the XP was under-priced for the true cost, or the original company didn't have enough capitol resources to ramp up to an economic quantity and cover losses during the ramp phase.

Building stuff "in your garage" vs putting together an efficient production operation are very different. Even if it's low volume production. And sure, you need capital as well as know-how, or you'll be in trouble. I also think his prices were a bit low, but there were obviously other problems as well.

Back on track: the worry here is that the new XPCamper will be no more successful than the founder if they don't pay their craftsman and laborers good wages. In their location, 20-25$ just ain't it.

The guy who posted here earlier was offered $12/hr for that job (welding and fab experience). He would have jumped at $20/hr since he was making slightly less than that and had a long commute at the time. Just because RE is high in CA doesn't mean that salaries are high. Granted if you are going after the very best workers you'll need to pay more, and you also aren't going to find many in little towns in the boonies (which Colfax, CA is). I mentioned that I know a guy that makes $60/hr working on boats in Miami (with a long commute). But one benefit of camper building is that you can locate the business pretty much anywhere. A place where there is local talent and a reasonable COL would be better I think.

 

[plh]

Weren’t they selling at close to six figures with a lengthy wait list? I can hardly believe that it was underpriced.

Underpriced to true cost doesn't mean underpriced to value of the product.

 

[fireball]

What I meant to say was that I believe that in the hands of the right businessman, XPCamper could've been a successful business selling at their existing prices.

If I sell a kitchen renovation for $50k I can make good money on it. I can also mismanage the project, have the wrong people doing the work and loose money on it. The mistake would've been in the way the project was managed, not because the job wasn't sold for $60k. Clear as mud?!

 

[utherjorge]

And here’s the Catch 22 with that....if XP couldn’t make enough profit to stay in business previously while paying those supposedly lower wages (because the market was just too small for their hugely expensive campers?), how is the new company going to become profitable paying its craftsmen these higher, albeit necessary, wages?

I dunno, but is it possible that not all money was making its way where it needed to go?

Around my parts, the claim is that if you get a dump truck, you can work plenty and make plenty of money if you want to. In the cases where a guy's trucking business didn't prosper, and he/she/they went out of business, a decent amount of money went up someone's nose.

 

[Bayou Boy]

Weren’t they selling at close to six figures with a lengthy wait list? I can hardly believe that it was underpriced.

Regular truck campers that aren’t absolute junk start in the high $30s or low $40s and go up from there. Just as a point of reference.

A normal Super C on an F550 chassis is $150k-200k. Compare that to an Earthroamer and you have what the multiple should have been.


Sent from my iPhone using Tapatalk

 

[Decanter]

These back seat MBA's are worse than back seat drivers . Seems like a lot of ASS-umptions are being made here...

 

[IdaSHO]

What I meant to say was that I believe that in the hands of the right businessman, XPCamper could've been a successful business selling at their existing prices.

Valid point, but also assuming that such a business has the customer base/support it needs to survive.

Punching numbers correctly and operating at peak efficiency doesn't mean a business will survive.

Gotta keep that lemonade stand open somehow, like a steady stream of customers ?

 

[AbleGuy]

..... . Seems like a lot of ASS-umptions are being made here...

Conversations would be pretty darn boring and not very stimulating if nobody ever made any assumptions as part of their contribution to the discourse. If we always limited our discussions to topics of certainty only, there would be very little to talk about most of the time. Requiring or expecting absolute proof of every statement made in a friendly, casual debate would be a foolish errand indeed.

Is living without any assumptions possible?

Is living without any assumptions possible? - Quora

www.quora.com

”No knowledge is possible without assumptions. This is just as much true of science as it is for any other discipline of thought.”

Can there be true conclusions without assumptions?

Can there be true conclusions without assumptions?

I was thinking of the sentence "I think therefore I am", which I had for a long time considered indisputable because it's self-evident. Then I considered the hypothetical situation where my tho...

philosophy.stackexchange.com

 

[68camaro]

Conversations would be pretty darn boring and not very stimulating if nobody ever made any assumptions as part of their contribution to the discourse. If we always limited our discussions to topics of certainty only, there would be very little to talk about most of the time. Requiring or expecting absolute proof of every statement made in a friendly, casual debate would be a foolish errand indeed.

Is living without any assumptions possible?

Is living without any assumptions possible? - Quora

www.quora.com

”No knowledge is possible without assumptions. This is just as much true of science as it is for any other discipline of thought.”

Can there be true conclusions without assumptions?

Can there be true conclusions without assumptions?

I was thinking of the sentence "I think therefore I am", which I had for a long time considered indisputable because it's self-evident. Then I considered the hypothetical situation where my tho...

philosophy.stackexchange.com

Wow, now my head hurts so “I think I am”.

 

[Darwin]

 

[shade]

I guess they are baaaaacccckkkkkk in business.


Couple goes to grass valley to pick up new expensive camper, arrives......camper not built.

According to the opening shot, that video is from April 5th - not sure of the year.