Want to own a Wakeboard Mfg and Machine Shop?

Just found this and thought I would share.

http://sfbay.craigslist.org/eby/bfs/3286023004.html

Funded Technologies wakeboard mfg and machine shop is for sale.Founded in 2002 funded produced wakeboards for two seasons.First season sold 30 boards. Second season sold 170 boards.Every season demand exceeded supply.Production was halted 2004 because of prior obligations.Even today there is demand for boards eight years later.The flagship board is a 142cm wood core board. We have an aluminum mold for the press. We also have wood prototype molds for smaller 135 cm version of flagship and a 140 cm model designed by josh smith and darin rayzor. All equipment to produce board in house paid for. We have enough materials in stock to produce 150 boards.The shop is 20 by 70 feet with good corner location in tracy. Rent is 1053$ a month. The company has zero debt. 2 national magazine covers 2003 and 2005. Regretably selling for 75000$ obo.Owner financing possible for qualified buyer with good downpayment....

Broc

Wait... They haven't made a board since 2004?.. What are they paying rent with? Prior obligations? What does that mean?

Sounds like a weird deal to me. You would think with demand like that for your boards, you could find cheap labor to handle production while you handle other obligations.

Income 170x$400 (guess price)=$68,000

Rent =$12,000

So before parts, labour, utlities, marketing, you are already down to $56k

If I were an owner of a business I would want to make that as a wage so it would seem to me either you do all the work yourself or you will never make much money.

Plus to compete with the big guns even at a local level you will have to offer something special. Bespoke shapes and designs. I don't know how much it costs to create a shape and a new mold but I can't see it being cheap.

I know there are bespoke surfboard companies but think about the difference in numbers of people who surf compared to wakeboard.

I think it would be cracking business for someone who loves everything wake but you would imo need $100-200k investment, time and be willing to make very little profit.

I wonder what other types of boards you can make with this setup?

Actually knew the group and the boards back in the day. I even tried to make an effort to but, but never got anywhere. Board was sick. Had a big Northern Cal. support. Probably could do 300-400 boards locally without breaking a sweat. It would be a whole cult type following. Got to do it cause you love it, not cause it make a ton of business sense.

Buy all the equipment and move it into my shop. I'll offer a 30% discount on building rent.