Just curious what you all think about the Callaway program. Is 18k really worth the performance/ exclusivity that you get from the conversion. Are there better packages out there for the money? For a total price of 80 something thousand dollars would you look at a different package when purchasing a vehicle from a dealer(Ligenfelter, Mallett etc...)?? Or would you purchase a vette with modifications made at the dealership like H/C/E swaps, power adders etc. I'm looking for ways to market a performance/ modified corvette and would like some input from the people who seem to have the best insight into the subject. (the corvette forum community)

 

I don't think its worth it when I can make the exact same modifications to my car for 1/3rd of the price, but then again you do get a warranty and some small measure of resale value by going with a brand like Callaway... I guess it is worth it if/when money is not a consideration....

 

I think that will have to be a consideration with buyers. A warranty is something that people will want when buying a new vette from a dealer. But.... if a warranty was included on work done through the dealer under the dealers own "brand" would you spend the money on packaged mods??

 

Well, mods in general don't net any kind of resale value, and dealer mods are no different: The warranty is nice but if you drop, say, $15K modding a 50,000 dollars car at the dealer, it will still sell for $40K a year later... That's why I try to do quality mods as cheaply as possible (I.E. Do my own labor)... I guess if I was going to get the labor done by someone other than myself, I could compare what the dealer charges with what a performance shop charges; I bet the tuner shop ends up being cheaper, and many tuner shops still offer you a warranty...
Case in point: Vette Doctors will sell you an A&A Supercharger kit INSTALLED for circa $6500 dollars. It will make more power and torque than the callaway package... Financially, for me, that makes the Callaway hard to justify... If they were the same price though, it'd be a different story. But I don't see 11500 dollars of added value by going with Callaway.

 

I don't know of anyone but LPE and Callaway that offer warranties for modifications. I also think they are probably the only two companies that increase the resale value of a modified Corvette.

In the end it will come down to how much you have to spend, how much you value resale value, and if a warranty is important to you.

San

 

Ok then if you were to walk into a dealership and see a vette on the showroom floor with a blower, exhaust, shifter, suspension etc. but it only added maybe 11k to the msrp of the vehicle, wasn't a brand name conversion, and came with a warranty would you be interested?? Or would you rather have a stock vehicle that was a "blank canvas" for you to mod on your own?

 

Yes, I for one would be interested, as long as the parts were what I was after.

San

 

$11K? Well if it was EXACTLY what I wanted and looked like quality work, I might be interested.
Mind you though, that warranty won't be honored by other dealerships, since it is still a modded ca, so you'd be stuck bringing it back to that same place for any kind of service...

 

Well of course I don't know pricing yet, 11k was just a number but if the parts weren't marked up absurd amount and it was a quality install, would it sell? We are getting a full custom shop but are looking at doing our own packages vs going woth a company like the ones mentioned. We've got the people and the facility but am curious about what a dealer modified "branded" corvette would do.

The other consideration is that there is really no one in our area selling anything like LPE or Callaway vehicles.

So... we are trying to decide which would be a bigger draw, our own packages or an established conversion type company. I personally think with our resources we will be able to build a reputation for quality installs, customer service, and the resale values will reflect that.

 

Reputations take time to establish, so I would take that into consideration. Being mentioned in the same sentence as LPE and Callaway would take a very long time.

San

 

Reputations take time to establish, so if I was starting a service like that, I would try to offer something Callaway and Lingenfelter don't have; your own heads/cam package based on a winning design you could license from some other tuner, an inexpensive centrifugal setup, a twin screw blower, etc... That could have a lot of potential

 

I know it's a long road and I don't for a minute think we'd ever be compared to them. They've been in business for a very long time. I have the utmost respect for what they've done for the corvette community. I'm just looking to grow our business while doing things that I love. I guess though that's the reason I'm considering such a brand. They have such reputations and have the resale value already. I would be honored to carry either.

Exclusivity or value for outright speed?

 

Keep this in mind. While their packages do come at a premium a lot of the price is the warranty figured into it. So I think it will be very hard for you to build quality packages and offer them with a warranty at prices rivaling other small name tuner shops. Let's say a small shop's typical S/C package installed and tuned costs $6500 with a basic 12month/12000mile warranty on defective parts and services. Your price would have to come in at less than what it would cost the owner to repair that package after the warranty is up. Meaning if his S/C decides to crap out on him and he has to get a new one for let's say $4000 installed and tuned, you might have a hard time selling that same package at a cost of $18k with a warranty. It's simply cheaper for them to do it over and start another warranty period. Also keep in mind that these warranties usually do not cover the residual damage caused by too much power. So if an engine blows because you over revved or because the drivetrain simply couldn't handle the abuse of the extra power, the warranty isn't going to help. It's only going to cover the parts installed. Another warranty annoyance from the bigger shops, is the convenience of their location. Let's say I go to LPE and order one of their packages. A few months later I have an issue that fortunately is covered under warranty. I now have to somehow find a way to transport my car to them and try not to be aggrevated by the loss of time and hassle of traveling, etc. If you plan on selling your packages all over the country that's another consideration that potential customers have to keep in mind. The hassle of getting it back to you for warranty work. If you plan on including a free tow for all customer warranty work, that's another expense you need to figure in, which will add to the cost of the package. I personally think the small, quality local shops are more convenient. Their packages are proven and if there is a problem it's a simple 30-60 minute drive/tow to have it fixed.

I admire your vision. I think with skilled mechanics and quality parts combined with proper business ethics, it can be done. After all Callaway and LPE started somewhere, right. You just need to be aware of all the possibilites and make sure you can cover your ***, while still satisfying your customers.

 

The warranty may be good if you happen to live really close to LPE or Callaway. But honestly, how good is the warranty? LPE and Callaway are top notch but it's more of a "look what I have and how much I spent" thing to me. You can get a lot more for a lot less $ elsewhere.

 

I agree what most have said...

Buy a stock car and have it modified to fit your specific needs/goals. Take the car back to stock when selling. Sell the mods for 1/2 what you paid for them and you will come out better than selling a modded car.

Done and done.

If you are planning on spending $80k for a modified vette, just check out the for sale section and buy one already modified OR you could check to see what some of the reputable shops like ECS/A&A, Lingenfelter, Callaway, etc. customers may want to sell their cars.

 

I think you may be misunderstanding. I am weighing the pros and cons of carrying a brand like Callaway or LPE at the dealership vs. doing our own in house tuning packages. I'm not looking to purchase a car for myself. I will be selling some type of already modified vett but haven't decided whether to utilize our own shop. These guys have lots of experience and great packages but is the cachet of owning one of their vehicles going to be bringing in more customers? Can I sell just as many at a cheaper price by going at it on our own (and would it be more fun)?

The thing is, we can build a reputation of our own by doing a quality job, providing the best facility and customer service. In the end I believe it would be more rewarding to make our own name.

I am curious though. Nobody who owns a Callaway, LPE, or similarly modified car has spoken up. I want to hear the other side. Why did you pick a vette by these guys?? Would you have bought a modded car without the name, or by a different builder if it were available for sale off the showroom floor?

 

I own a 07 LPE with twin turbos, I road race against the Callaway and win. That being said non naturally asperaited cars do not belong on a road race track. no matter what you do you can't keep it cool, even in the fall! I have had problems with the LPE Z06 but I see the Callaway car does also. No matter who you pick your car will never be as reliable as a stock version. But it won't be as fast either! If I had to do it over again I would pick the company closest to home since it will be returning for repairs. Hope this helps?

 

No warrenties on track cars. I've had to rebuild both GT 30 turbos, replaced turbo hoses twice, and just installed a new scavenger pump. But the entire drive train redone by LPE is running as good as new!

 

Bowtie Guy:

If you are the owner or working at a franchised Chevy dealership, you should already know that you face HUGE federal fines for doing anything that affects the emission control systems of the cars you sell.

Could be a deal-breaker, unless you sign up with Callaway or LPE.

 

I understand. I'm just showing you that if you decide to provide your own work and performance packages as opposed to offering Callaway/LPE cars, you have to figure in the price of warranty work if you're going to offer one. This is what will raise the cost of your kits(assuming you want to make a profit). I also tried to illustrate the customer's perspective. The reason why you're probably not getting a lot of replies from the big name shop customers is because their volume can't match the numbers of the smaller shops. The Corvette is the workingman's a lot for the money sportscar. Most follow that same ideaology towards modding. The smaller shops can turn out just as good, if not better performance for a fraction of the cost. Most shops are very tight and actually make their customers feel like part of the crew. I personally wouldn't try and model your price point around shops like Callaway and LPE. If you want to offer their cars then that takes some of the hassle off you but also the fun of designing and building your own packages. What it comes down to is are your customers getting enough performance for the price. If you can produce these packages and come in under the big name prices, while still making a profit then go for it. Like you said it's a long hard road to prove yourself to the enthusiasts. You have to start somewhere though.