Archive for the ‘Uncategorized’ Category

3 Keys of Survival for Tesla, Aptera, Fisker, Miles, Pheonix, and Other Automotive Start-Ups

Tuesday, January 6th, 2009

I recently blogged about how the recession will benefit automotive start-up companies. The basic jist is that the large companies are hit harder than small ones allowing the little guys to gain precious ground.

This doesn’t mean, however, that Tesla, Aptera, and the others will have it easy throughout the recession. They like everyone else will be scraping and clawing to survive. I’m no business expert (yet), but I want to point out a few key points that I think will determine whether or not these automotive companies sink or swim (or should I say stall or rev).

1. Be Niche (NOT Mainstream).

These companies are not in a position to compete with Camrys and Accords. They shouldn’t even attempt to reach those masses. Take for example some other successful vehicles that were limited to niche groups:

  • Hummer: Rolling-billboard Niche
  • Escalade: Bling Niche
  • Harley Davidson: Need-to-feel-more-manly Niche

Tesla, Aptera, and Fisker seem to have pretty clear niches:

  • Tesla: Green-alternative-to-a-Ferrari Niche
  • Aptera: Greenest-person-in-the-city Niche
  • Fisker: Green-alternative-to-a-Mercedes E Class Niche

Pheonix Motorcars and Miles Electric, on the other hand, seem to have products aimed more mainstream (as far as I can tell).

Pheonix Motorcars: Competing with Chevy Equinox?

Pheonix Motorcars: Competing with Chevy Equinox?

2. Be Luxury.

Luxury items like Rolex are affected very little by a slumping economy. Further, every tecnological advancement has to start out in expensive luxury products:

  • Computers
  • Cell-Phones
  • GPS
  • etc.

Luxury items allow for a good profit margin even at low volumes. Tesla, with their $109K Roadster, seems to grasp this concept well. Miles, on the other hand has a $40,000 highway sedan that looks like a 10-year-old Accord. I’m not sure how they are going to attract high-end buyers.

Miles Electric

3. Pre-Orders, Pre-Orders, Pre-Orders.

These companies have to shell out a lot of money to build their cars before they can sell them. Creditors and investors are very hesitant right now. Many young companies are crushed by such cash flow problems. There is no better way to gain the confidence of creditors and investors than to have a pile of customers shelling out cash before the final product even exists.

Let the customers pay a hefty fee to reserve their car. Send them home with a fancy plaque to hang on their wall: “John Doe: Owner of the 63rd Aptera.” Keep them posted on the status of their car. Let them bring their friends by company headquarters to go for a spin in one of the company cars.

Aptera charges only $500 for their reservation fee. It seems like anyone green enough to buy and drive an oversized sperm on wheels would be willing to shell out more to be an early adopter.

Prediction.

I honestly know very little about any of the companies I’ve mentioned, and there are certainly more critical factors than the three I mentioned. But if I had to guess which companies are heading for trouble I would say Pheonix and Miles. They are too main stream and not luxury. I don’t see how that could be a recipe for success in the early stages of a new product.

Tesla, Aptera, and Fisker; on the other hand; appear to be positioning themselves well. That’s why I listed them as the 3 American Car Companies to be Excited About. It will be fun to see how it plays out.

Thoughts?

Welcome to Drive Liberty

Monday, October 27th, 2008

Welcome to my blog’s new scope and theme.

I started this blog two years ago at the request of my internet marketing teacher. I’ve proven to be a scattered and inconsistent blogger. I’ve struggled to find my voice.

After taking a step back and analyzing my passions, two things stand out: cars and liberty. They are the two subjects I love to read, and should certainly be the two I write about. Enter Drive Liberty. I don’t know how connected the two subjects will be, but at least now my amateur rants will have some scope.

I’m sure the blog’s new graphical theme shows what an amateur-hack-designer I am. Let me know if it displays weird or takes way too long to load–I might need to get help from someone who actually knows web-design and development.

Well, I have a blog. It has a theme. Now I just need to write something worth reading. Let me know if you have any suggestions.

How I Lost 20 Pounds

Monday, September 15th, 2008

Okay, the real title of this post should be more along the lines of How I Gained–Then Lost–20 Pounds. I only share it because my method for losing the weight was rather unique and a few of my friends have asked me to share the program.

I left for Portugal as a Mormon missionary in the beginning of 2002. I was 19 years-old and weighed a trim 145 pounds. My body, however, seemed to balloon as I experienced two significant lifestyle changes: my athletic life was all of the sudden limited to walking a few miles everyday, and more significant, I discovered Portuguese breads and pastries–heavenly!

The blunt Portuguese cultural was helpful in alerting me of my ever increasing waist-line; many people started calling me Gordinho which means “little fat one.”

One of my colleagues (I wish I could remember which one) showed me a book that his dad had given him. It was a work-out program used by The Royal Canadian Air Force (which I had no idea exists). It had separate programs for men and women. The men’s workout was a simple 11 minutes per day full-body workout.

Note: I just found the book on Amazon, but it doesn’t go for cheap. I guess used copies start around $42. It’s reviews are really high, so apparently others have had success with it as well.

The jist of the program is simple:

  • You do 5 different exercises in 11 minutes. The time allotted for each exercise is 2 min, 1 min, 1 min, 1 min, 6 min respectively.
  • There are six work-out charts. Each chart describes how to do the 5 exercises. Chart 1 starts out with simple, even easy, exercises. Each subsequent chart makes slight changes to the exercises so they become gradually more difficult until you reach chart 6 where they are near impossible for anyone but a super-athlete (I made it to chart 5).
  • Each chart has 12 levels: D- through A+. Each level tells you how many repetitions you have to complete in the alloted time. You start on chart 1, level D-. You move through one level per day until you complete the chart at which point you move onto the next chart. When you reach a level that you can’t complete you repeat it until you can.

I liked the program because it is fast and requires nothing but a clock. The 6 charts and 12 levels make for a very gradual 72 total levels. In fact, chart 1 is so basic that it hardly feels like you are doing anything for the first two weeks. It gets gradually more difficult until the 11 minutes become very intense.

I didn’t like the program because exercise 3 is always some form of lying on your belly then arching your back and lifting your head and feet off the ground. All my colleagues thought it looked like some hybrid form of Superman and a beached whale–boy did it generate a lot of laughs. However, after trimming down and toning up a bit, a few of them were asking for copies of “The Canuck Program” as they called it.

Here is a pdf copy of my charts (which were photo-copied from my colleague’s book). They’re slightly marked up with the dates that I completed each level. I don’t think posting them violates copyright laws because the book is so long out of print (please let me know if I’m wrong).

My Ride in a Shelby GT500 at Ford’s Proving Grounds

Friday, September 5th, 2008

Last fall Ford Motor Co. sent some recruiters to BYU where I was in my senior year. One of the positions they were looking to fill was Financial Analyst. I have no experience or training in finance, but I figured my background in economics coupled with my passion for the automotive industry might make up the difference.

I applied for the position and was selected for an on campus interview. It was my first real job interview so I was pretty nervous. It must have gone at least okay because they invited me to Dearborn, Michigan for their recruitment fair (I can’t remember its official name). I was to be 1 of approximately 150 candidates looking to fill a number of different positions.

Upon arrival in Detroit my driver was waiting, sign in hand, for me at the bottom of the escalators–just like the movies! He took me to the Hilton Hotel across the street from Ford Headquarters. The following day was packed with great meals; rigorous interviews; a tour of the F150 final assembly line; and most importantly, Ford’s proving grounds, The Dearborn Development Center.

As a side note, I was introduced to Motor Trend when I was about 12 years old. I read every issue from cover to cover and even saved them all in a big Rubbermaid tub. I told people my dream job would be Motor Trend driver/writer. As I entered Ford’s proving grounds and saw all the next generation vehicles clad in camouflage, I really felt like that dream was about to be filled. Look at this fact list and imagine these things unfolding before my wide, dreamy eyes.

Dearborn Proving Ground facts:

  • 360 acres in Dearborn, Mich., with approximately 25 miles of test roads
  • First test track is laid in 1938 around Ford Airport runways. It is actively used as an airport until June 1947.
  • Tracks include two oval tracks at 2.8 miles around, a straightaway nearly 1 mile long, a Ride and Handling track 1.1 miles around, two hills with 11 percent to 30 percent grades, a wet skidpad and a variety of test surfaces for development of steering, brakes, NVH, ride and handling, powertrain and durability.
  • Test vehicles drive approximately 2 million miles per year.
  • Grounds include four wind tunnels, cold test rooms, Automotive Safety Center and Crash Barrier, Product Review Center and two vehicle service garages and offices
  • Approximately 800 employees
  • Gas station supplies specialty fuels for powertrain calibration and emissions certification.

source:

Here’s a Satellite Image:

View Larger Map

Shelby GT500

While the tour of the facility was exciting, it just wouldn’t have meant much without some driving. I got three separate rides. The first was a rather boring circuit in a Fusion (I drove). The next was more exciting–a professional driver took me around a more thrilling circuit in an Edge. Finally, I got a helmet and a seat next to a professional driver in a Shelby GT500. The ride he took me on simply cannot be repeated anywhere but on a track. I’m certain that any description I write won’t do it justice. Instead, check out this clip from Fifth Gear. It’s very similar to what I experienced.

In the end I wasn’t offered a job but I think I will always classify that weekend as an experience of a lifetime.

What summer sales and MLM companies have in common and why I hate them both.

Monday, August 25th, 2008

The Pitch:

It’s always the same: “My friend knows this guy who made a bazillion dollars. All you have to do is [fill in the blank]. You could make a bazillion dollars too! If things go just okay, you’ll still make loads. And worst case scenario, at least you won’t lose anything.”

It blows my mind that people sell a product/position/business without ever talking about the product. What is it? Is it something I can truly believe in? Does it excite me? Is it really worth the asking price? Is it a hoax? What is the competition like? Are there better alternatives?

Summer sales and MLM companies don’t have products or competitive advantages that set them apart from their competition. Summer sales and MLM companies use business models that over-compensate a few high performers in order to attract hoards of average and under-achieving people, most of whom are under-compensated.

A Typical Summer Sales Business Model:

Here is what a typical summer sales pay scale would like (I’m not including numbers–just focus on the general trend):

Now compare that to a typical distribution of sales reps (based on how many sales each rep makes in a summer):

Notice that the vast majority of sales reps end up somewhere along the “bell” part of the curve. Superimpose that on the pay scale and you see that the company pays very little to these average and below average reps. The high performing reps lie out in the “long tail”. They are few, so the company can afford to grossly over pay them. This prepares a class of recruiters for the next year and sets the standard for all of next year’s hopefuls.

From a business’s standpoint, it’s a good model–assuming they have a large supply of new recruits each year. For a new recruit though, you better be better than average, fully committed, and hopefully even believe in what you are selling.

MLMs are Different:

Yes, MLMs have completely different business models from summer sales, but it’s still true that a few over-paid superstars are used to attract hoards of average and below-average people. That’s not a bad thing. It’s just important to understand the reality–you have to perform better than average to make good money.

Sell the Product!!

I know I can’t perform above average with a product I don’t believe in (in fact, I’m a dud if I don’t believe). So please; friends, family, and anyone else who is thinking to “recruit” me; tell me why your product is the greatest. Tell me its competitive advantages. Don’t tell me about you friend’s friend who made a bazillion dollars.

Note To my friends and family who have already approached me with proposals. This little rant was not a personal attack on anyone. I hold you all in the same high regard that I did before any proposal. I’m simply using my blog as a platform where I can take a general stance and let all three of my readers know. :~)

To All You Parents–Especially Mine

Sunday, August 24th, 2008

I just became a father. I used to hold many sympathies for parents–they are quickly becoming empathies:

Labor and Delivery:

WOW! Mom, hats off to you and a million thanks!

Exhaustion:

I wonder how many sleepless nights I caused.

Getting peed on:

I hope I got dad a time or two.

Pure Joy:

Was I this cute?

Road Trip from Provo to Washington DC

Saturday, June 21st, 2008

I just added up the receipts for our move across the country:

  • Miles Driven: 2576
  • Number of states: 11 (Utah, Colorado, Kansas, Missouri, Iowa, Illinois, Indiana, Ohio, Pennsylvania, Maryland, Virgina)
  • Average miles per gallon in our 96′ Camry: 31.74
  • Average price per gallon of gasoline: $4.04
  • Gallons Burned: 81.16
  • Money spent on gas: $329.03
  • Money spent on toll roads: $36.25
  • Location of most expensive fill-up: Parachute, CO ($4.30/gal)
  • Location of least expensive fill-up: Topeka, KA ($3.89/gal)

Route:

View Larger Map

a. Springville, UT
b. Glenwood Springs, CO
c. Hays, KS
d. Hannibal, MO
e. Napperville, IL
f. Kirtland, OH
g. Woodbridge, VA

I learned a few interesting things along the way:

  • There are road bikers who are insane enough to ride over Vail Pass (elevation 10,500 ft above sea level).
  • As you cross the Continental Divide at the top of the Colorado Rockies, there is a tunnel that cuts through the mountain so you only have to clime to around 11,000 ft above sea level instead of 13,000).
  • Pennsylvania has a similar tunnel through their Allegheny Mountain, but after coming from The Rockies it seemed unnecessary to drill through a mound that most westerners would consider a hill or a butte.
  • Kansas Sucks
  • The “Tom Sawyer Cave” really exists near Mark Twain’s home town of Hannibal, MO.
  • The College Football Hall of Fame closes at 5pm (we arrived at 5:08).

Here are some pics from the journey:

It’s a girl!

Monday, March 24th, 2008

Britt and her mom, for quite some time, have been saying they think we are having a girl. I took an opposite stance and started telling everyone it’s a boy (because I decide of course).

I was wrong. We just got the ultrasound and we’re going to have a little girl!

Western Presidential Primaries: 3 Reasons to Vote Early!

Saturday, January 26th, 2008

I voted yesterday. I was nervous there might be things on the ballot that I didn’t know anything about. Fortunately, the only thing on the ballot is the presidential primary.

I was glad I went early for three reasons:

  1. There was absolutely no line!
  2. I recently moved and had to fill out a change of address form and show proof of my new address. Apparently you can’t make that change on election day.
  3. I wasn’t affiliated with any party so in order to vote for Ron Paul* I had to affiliate myself with the Republican party. I guess you can’t do that on election day either.

So if you haven’t voted yet, go! All you need is your driver’s license and a few minutes (if you’ve moved since you registered to vote you will also need a piece of mail with your name and address). For those of you here in Utah County, go to the county building in Provo (Center Street and 100 E.) between 8am and 5pm. Or you can also go to the American Fork Library between 3 and 7pm. You have until Friday February 1st for early voting.

* I chose Ron Paul because ALL of his platforms are based on very simple and true principles: personal liberty and limited government. If you haven’t taken 15 minutes to listen to one of his interviews or read an article, please do. Here is a good article. You will be shocked to find a politician that makes perfect sense and is 100% unapologetic about standing for what’s right.

I am a research assistant!

Monday, January 21st, 2008

After deciding awhile back that I want to go into market research, I started working hard to learn econometrics and make myself qualified and prepared to enter that field. Today an opportunity opened up that I am confident will be a huge stepping stone. Professor Joseph Price hired me as a research assistant to aid him in a study that shows the effects of pornography on marriages.

I am super excited to get on the job training in data collection, interpretation, and analysis. I am even more elated that the job will place me in such an important study.


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