Ragged Edge - Extreme Indoor 4x4

[cj!]

Anybody interested in having a go? Could be a social outing.

http://www.re4x4.com.au/

[gwagensteve]

$$$$?


Sorry for the negativity, but

Knowing the history of at least one of the people involved in this enterprise, I would be surprised if it properly gets off the ground - I hope they've done some good financial modelling- bear in mind, ace Karts in sunshine bring in $1500/hr for every hour all the karts are on the track to support their operation, which might be 10 hours a week, tops

Does anyone know anything more about the format? I don't imagine unless someone has paid to drive or passenger the're wouldn't be much to look at.

I give it until Christmas.

[sierrajim]

$$$$?


Sorry for the negativity, but

Knowing the history of at least one of the people involved in this enterprise, I would be surprised if it properly gets off the ground - I hope they've done some good financial modelling- bear in mind, ace Karts in sunshine bring in $1500/hr for every hour all the karts are on the track to support their operation, which might be 10 hours a week, tops

Does anyone know anything more about the format? I don't imagine unless someone has paid to drive or passenger the're wouldn't be much to look at.

I give it until Christmas.

Even look at the U-Drive rally days, they've cut back their open days and they're mobile, they can go to where the business is at.

That said there are a number of buggies being built ATM for this operation.

[gwagensteve]

Let's say 4 buggies @ $30K each
Antunac's car - $60K?
A year's lease on a warehouse - $45K? $60K ?

I'm seeing $250K in this.... defore anyone pays a wage - That's a lot of debt to service.

Like I said, I'm trying not to be negative, but my information is that most go kart businesses only just break even, and there's no way they are dealing with that set up cost.

Steve.

[cj!]

Personally I'd be surprised if it lasts and I don't know how much or what the format is but I just thought I'd throw it out there and see if anybody is interested.

[sierrajim]

I think you might just find that he paid substantially more than $60k for Bally's 40 series, the buggies, from what i hear, are being built with some pretty good stuff so even the $30K allowance might be light on.

Rent in Port Melbourne would have to be WELL above $60k per annum. I pay that out here. I'd be thinking above $500k to set up, advertise, insure, build etc etc before you pay a wage, put fuel in a buggy or break anything.

As a "mobile" show/service provider he'd probably do really well. Courses would have to be designed for beginners so that you didn't have people doing anything stupid which may get a little boring for some.

[gwagensteve]

I don't doubt it, I was just being ballpark conservative, and to me the numbers still don't add up at $250k, even less at $500K

I can't imagine the liability issues for getting joe public to drive a big car, indoors.... I'm glad I'm not doing the risk assessment for the insurer. I really think the area will need to be lamed down so there's no risk of rolling etc, let along going mental and trying to climb out of the driving area or smashing though the walls.

I just can't see how it will hold appeal - if it's not racing, and It's trails based, how do you "compete" with your mates, which is really the point of gokarts, as an example.

I am interested too see what it looks like though and how they make it "work" as an operating concept.

Steve.

[muppet_man67]

one would imagine though that before venturing into something like this they have a business plan and have crunched some numbers. I'm happy to give them the benefit of the doubt. I don't see how their business prospects are relevant to whether we check it out. If its priced right and has some cool obstacles then I think it could be an excellent night out for the club. If its lame then we wont go back.

I think that even on a slightly tame course it could be cool, ie manual gearbox and no lockers slightly too high gearing could make things really interesting and allow for friendly compitition between mates. It the buggies are simply point and shoot with a small risk of rollover then the friendly competition goes and its really just about pucker, which with a full cage and harness etc most of us would be well beyond.

[gwagensteve]

I guess my speculation is based on the fact there is currently no other information - just a front page. Nobody has seen anything, there's no pricing etcetc. Does anything actually exist except one web page and a couple of banners?

Imagine how lame hire go karts would be if you actually raced a kart? How lame paying to abseil is if you actually rockclimb?

Why the business model is relevant is if they're charging the cars out at about $400/hr, as I reckon they might have to to cover costs and utilisation (i.e they are only getting used for 10 hours a week), then at $100 for 15 minutes doesn't look like very good value. If no-one will cough for the $$$ out of our group, then going down there to stand in a shed and stare at some spraycrete isn't much of a night out.

Sure, at $100/hr it might be good value and a great night out.... It all remains to be seen.

I'll try and get down there to check it out and report back.

Steve.

[muppet_man67]

why do you think they would only get 10hrs a week? I cant see why so few, (unless there are no clients) Thats the thing there is only a front page. yes most often this kind of thing turns out overpriced and lame, wait and see. who knows it might never even get built.