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fishtail-99
Joined: 17 Apr 2007
Posts: 1437
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 Posted: Tue Jun 17, 2008 6:16 am
Kamado Markup? 2001 Prices... |
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| Does anyone know what the normal retail price of the K7 and K5 Kookers were in 2001-2002 time frame? |
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somebodyelse
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fishtail-99
Joined: 17 Apr 2007
Posts: 1437
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Posted: Tue Jun 17, 2008 8:11 am
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Amazing! A K7 custom was $1000? How could RJ have gotten into money trouble with such tremendous markup? Anyone care to guess what his costs were for that 2001 K7 custom before I post some information? How about 3 categories:
1) Cost of the "stainless" steel parts
2) Cost of the shell
3) Labor cost |
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outlaw99
Joined: 23 Oct 2007
Posts: 33
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Posted: Tue Jun 17, 2008 1:18 pm
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let me guess:
1) $64
2) $55
3) $10 |
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fishtail-99
Joined: 17 Apr 2007
Posts: 1437
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Posted: Wed Jun 18, 2008 3:41 am
2001 Costing Sheets |
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Special thanks to our buddy Topo for supplying these documents. 
Kamado #5 2001 Costing Sheet
Kamado #7 2001 Costing Sheet
The "stainless" steel parts were about $59.
The shell materials were about $54. That includes $3.53 for 100 pounds of cement and $10.59 for 250 pounds of cinder (lava rock).
The labor costs were a staggering (drum roll) $13.35. Whew, he must have really sweated his payroll. It cost a staggering $2 in labor to tile a K7. Think about that. The best thing that ever happened to those workers was when Richard Johnson fled Indonesia in the middle of the night to avoid the meeting with the creditors and lawyers. Maybe if Richard Johnson had paid a worker $3, the tiles would have stayed on the kookers instead of falling off.
There were other little costs but the total cost of a K7 excluding "contingencies" was $156.39. That includees crating the kooker. |
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Gerard
Joined: 05 Jul 2006
Posts: 769
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Posted: Wed Jun 18, 2008 6:45 am
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| fishtail-99 wrote: | | The shell materials were about $54. That includes $3.53 for 100 pounds of cement and $10.59 for 250 pounds of cinder (lava rock). |
Isn't the cement:cinder ratio reversed?
Assuming the costs of the cement and cinder are right, where does the $54 in shell materials figure come from? Does that include the mosaic tile? I doubt he used premium grade chicken wire.  .
And, assuming these numbers are right... why did he ever need any investors to increase production? Rhetorical question.... not really in need of an explanation. |
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Nemesis
Joined: 04 Jul 2006
Posts: 534
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Posted: Wed Jun 18, 2008 8:11 am
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RJ should be rolling in cash by now! If we use these margins, and his own estimates of tens of thousands of cookers sold, then that is several million in revenue.
With this kind of margin, it is difficult for people like K-fan to start crying poverty, or hardship, when responding to RJs pattern of stiffing distributors. Margins like these point to simple thievery as more of a cause! |
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Schadenfreude
Joined: 19 Sep 2007
Posts: 20
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Posted: Wed Jun 18, 2008 9:06 am
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| fishtail-99 wrote: | Anyone care to guess what his costs were for that 2001 K7 custom before I post some information? How about 3 categories:
1) Cost of the "stainless" steel parts
2) Cost of the shell
3) Labor cost |
What's it matter? He probably didn't pay for any of it.
Unless you're including the nickels he had to put in the copier at Kinko's. Those stock certificates don't print themselves. |
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foxhound
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Posted: Fri Jun 20, 2008 7:44 am
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A very low cost indeed, however, there are some additional costs stateside. I'm sure getting through customs stateside and maybe some duty taxes. I don't remember, does the K customer pay for delivery or did Kamado pay for delivery? |
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Nemesis
Joined: 04 Jul 2006
Posts: 534
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Posted: Fri Jun 20, 2008 8:29 am
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Customer pays freight...even if you are so fortunate to get a replacement, its going to cost you a few hundred in shipping.
If you check their site, I think it declares prices FOB San Diego. |
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