KuhDunkADunk
New member
I think "Gobi" has a poor business model. After reading all the posts I feel sorry for anyone that has to order and wait, they are nice racks and I would want one my self and I'm sure we would pay $2500 if that was the cost.
Gobi for some reason doesn't recognize, or refuses to improve their model. Their long lead times of delivery is most likely due to limitations on production such as workers, equipment, other things they make etc.., obviously by increasing their production = more revenue! hell they have a patent on the old school nylon flip phone belt case, maybe they are too busy making those :loco: Why not expand, grow the business, pump out thousands of racks per month. Maybe their business model is to limit production and enjoy to watch people suffer and wait while someone forks out $1500 and is charged but no product, no communication, no whats so ever but in the end you'll get a nice little card saying "its your lucky day"
So I agree that looking outside in, Gobi looks either incompetent or just plain ignorant. But a lot of what you said is based on assumptions.
It takes a shit ton of money to increase capacity (and that's assuming the TAM is available). So let's look at the numbers, last year Toyota sold 128K 4Runners (one of the highest annual sales ever). The year before that they sold 111K, and the preceding 9 years, they sold way less than 100K. (just eyeballing it, they avg maybe 60K 4Runners a year). But lets go aggressive, lets say Toyota continues to sell 128K vehicles a year, then we can do some simple math. Now I have NO idea how many racks they sell, but I highly doubt they would attach to 5% of the 128K vehicles sold last year.
But for this friendly discussion, let's assume Gobi attached to 5%, that would mean they sold 6.4K racks. According to their website, they sell Gobi racks (just the racks) for $1600. So again, no idea how much it costs Gobi to build these things, but if you factor in existing capital expenditures, freight (these things are heavy and oversize), as well as cost of labor, lets guess they make 25 points (HIGHLY DOUBT IT)
So basic math (and the most optimistic assumptions yield) $400 profit x 6.4K units = $2.6MM annually.
Now that might sound like a lot, but tooling is expensive (could be in the millions by itself depending on size and scale). You'll probably need extra labor (which means more OPEX), a larger facility (if you could even expand your factory/warehouse), not to mention all of this is under the assumption that Toyota continues to sell over 120K vehicles a year. A vehicle that is 8 years into its current generation AND that Toyota doesn't change anything that would wipe out all the cost associated to expansion. Oh yeah, and that assumes you put every penny of that $2.6MM into expansion...
So is it frustrating that Gobi's lead times are ridiculously long? Absolutely! But in doing the math, I can see why. Also, don't forget, the last 2 years have been abnormally high for 4Runner sales, before that, Toyota was sell like 60K units a year, there isn't even enough there to warranty expansion.
Anyways, just my 2 cents.