Looking for Business Advice

[KenaiGary]

I've been a PW owner now for about two months with a restored 1961 WM300 and a project 1950 B-2 I bought for my grandson (many of you have read that story in my past posts). That $1,000 investment has now turned into having a gravel driveway and pad put into on the lot I own across the street from where I live. Total cost is going to be about $20,000 by the time it is all done.

Could have done things cheaper, but my wife is supportive because she will be able to see her
grandson, Brycen, more once we begin working on the 1950. He is 13 months old. Special thanks to the Dodge Boys for sending him his first part, a fuel pump. And, also to Dan Minenger for the discounted zinc oxide coated running board brackets.

Here is where I need some advice. Today a buddy and I did a junkyard and backwoods tour looking for old PWs on the Kenai Peninsula in Alaska. In just six hours I "found" at least 10 M37s that are just sitting in fields and are in at least as good condition as most that are listed on the PW Photo classifieds. Also found a 1942 Dodge flatbed dually that is in great shape. Also found a PW ambulance that could probably be had at a great price--there is presently one for sale on the photo classifieds that could be a twin.

Based upon what I've found and considering I haven't even scratched the surface of what is available--we only drove the main highway, I am thinking there is an untapped business opportunity for M37 FFPW parts.

I'm thinking I could buy a 5 acre lot up here for about $5,000, buy a decent trailer to haul these out and sell parts. In looking at parts' costs, I am thinking I may have a reasonable business model, so I'm looking to the experts on this forum to tell me if I'm just dreaming or whether this might make sense. I plan to retire in about 10 years and this could be something I could pursue if I start collecting the vehicles now.

Yes, I would have to hire a kid to help pull the parts and there would be other costs, but before I start writing a business plan, I'd appreciate any advice.

[Gordon Maney]

Given your location I worry about the shipping costs.

Are the trucks good enough that you could consider trying to sell a truck or two first, to see how it goes? What is the market for M37's up there?

[KenaiGary]

Business Advice

Yes, that is the challenging part, lots of parts and good looking trucks, but expensive to ship south.

Hard to say what the market really is, but I haven't seen a M37 on the road and I'm only aware of a few running FFPWs in the state, but there must be more. I know they are a rarity on the Kenai Peninsula as I get more stares and people following me to talk about my 61 than I ever did in my restored 61 Corvette.

I think your advice is good about trying to sell a couple first. I'll still need to invest in the land and a trailer. It's a shame seeing all of these mostly restorable trucks sitting out. Also lots of implements attached to them like drilling rigs and post hole diggers. I think Clint Dixon would have fun up here.

[Matt Ely]

Business

Gary, I think that shipping to mainland US will be the downfall. If a lot of folks wanted them in Alaska, why are they still there? And if you were to do piece by piece, I think that shipping would kill your profit or the value to the consumer. I know that somewhere someone told you not have partners, but the way I see it working is to fill containers to the brim and ship them to Washington by ship, and have a yard there were the parting out is done ( Do you have relatives you would trust?). Also, as has been said, M37's have little value - I bought one early this summer, then tried to sell it and ended up losing $80 and all my time. ($1200 sell price). And I have seen them go for $8500 nicely restored. So the money would be in Power Wagon pieces and parts - and then probably in the smaller parts. I am going to end up with a cab and frame with axles when I finish my build, and based on where I am at, I believe they will have little value. And one last thing. The economy sucks now and probably will for a while, meaning your audience may be strapped for cash right now. Sorry to be so negative - I prefer to be classed as a realist. I wish you the best in whatever you decide. Matt

[Bob Thompson]

Gary, Besides shipping costs you would also need to consider the inclimate nature of the weather up there as a factor both with shipping and actually removing the sold part. It could be daunting to have a sale for a transfer case only to find that you have to shovel the donor truck out and then remove the part in below freezing weather. Unless of course , your customer is willing to wait for spring. The alternative is to strip the trucks while it's warm and then catalog and store the parts inside. And then we're back at shipping cost.
You might be able to make a deal with a hauler who regularly heads down to the lower fourty-eight but that would require taking on a partner in Washington or some other state who could distribute the parts via UPS or what have you.
I guess it depends if there's enough meat on the bone.