Teardrops n Tiny Travel Trailers

What are the issues with building teardrops as a business? Say like ten a year or so. What agencies do you have to contact and what regulation hoops do you have to jump through? Anyone know? I am just curious as this is something I would be interested in doing one day in retirement.

Thanks

There's a builder who does that by just selling the box. He tells the customer which trailer to buy and register; they bring it to him when he's done; and he bolts the box to the trailer. He has no muss or fuss with the DMV and neither do they. He's able to reduce his asking price accordingly and doesn't have to work around the trailer during the build. Can't remember the specifics, but I think he comes around here from time to time, or maybe I read something in the Cool Tears online mag.

Might not work for every customer, but it sounds like a good option to me, if you are considering that sort of thing.

Jdw2717 wrote:What are the issues with building teardrops as a business? Say like ten a year or so. What agencies do you have to contact and what regulation hoops do you have to jump through? Anyone know? I am just curious as this is something I would be interested in doing one day in retirement.

Thanks

It's going to vary from state to state for a finished teardrop constructed for monetary gain. In Idaho, each would have to be issued a VIN (and other hoops). Start by talking to your DMV people. Not all are going to know the correct answer–this isn't the normal Monday morning question. And of course somewhere after that would be the sales tax process.

T

This question up very regularly. Do you want to hobby build or start a business?
Liability insurance is probably your biggest overhead. And most states require builders to issue a Certificate of Origin, which the buyer takes to their respective BMV for registering. And to make a profit you should plan on buying material in bulk from a wholesaler. Buying from a local home center doesn't give you much room for mark up. Get real serious about what hourly rate you can realistically survive on...multiply that times the hours you honestly expect to complete one in. That's your profit!
And if you are ready for after hours phone calls, after the sale support, advertising ,etc. Are you thinking of a spec unit, or custom build to order? Believe me people will want a lot of options and/or modifications. Also An LLC is a good way to protect your personal pocketbook. Are you serious about keeping the books for accounting purposes? Are you going to offer a warranty? Do you have the tools, space, and be honest here...the knowledge to produce a quality product?
In the end it takes a lot of units to pay the bills and clear a decent profit ( or any sometimes). There are several quality people and companies all ready in business to give you competition, unless none in your area. Not trying to discourage you but there is a lot to consider. Some people get around some of these issues, but the liability can be huge! This is something that a person can tow down the highway at 70 mph, and lawyers are vicious!

The RVIA (I think that stands for Recreational Vehicle Industry Association) is a trade group that sets industry standards for its members. They might be able to help you get started, but they might demand membership before giving any help.

Best,
Tom

There a out fit Knox retro there might look them up They got insane on there price. So they might be out of the trade

KCStudly wrote:There's a builder who does that by just selling the box. He tells the customer which trailer to buy and register; they bring it to him when he's done; and he bolts the box to the trailer. He has no muss or fuss with the DMV and neither do they. He's able to reduce his asking price accordingly and doesn't have to work around the trailer during the build. Can't remember the specifics, but I think he comes around here from time to time, or maybe I read something in the Cool Tears online mag.

Might not work for every customer, but it sounds like a good option to me, if you are considering that sort of thing.

I'm the guy who Just sells "The Box". I went this direction for many reasons.

1) The state I'm in is very costly and aggravating to have a new trailer of any kind registered just so I can sell it in a month and have the customer go through the same process and expense again. By having the customer Buy and register his/her own trailer first it probably saves THEM $500 and that makes my product much more marketable. When I sold this model on a trailer that I supplied, the customer did not get anything for this $500.00 except a sob story from me on why it costs more money.

2) Most Utility Trailer warranties are not transferable. That meant that if I sold the unit with a frame even though it had no miles on it I had to warrant somebody Else's product. Its there product....let them warrant it

The process was simple. The customer would send me a small deposit and buy there trailer frame ( I use a Tractor Supply trailer #000215) and start there own registration process. When "The Box" was done, they drove to my shop and we bolted it on. They paid the balance and away they went.

All I have to do is warrant my work for a year.









Another one Finished w/different doors.





Happy Trails

Len

Great idea. Saves some liability also.