I have a business opportunity but not sure what to think about it.

[alloy]

This morning I got up to an email from a competing business. Background on this, I modify transmission housings to drive a cable speedometer and do well for a one man band. I'm retired after a stroke and don't spend a ton of time in my shop but it's a nice side gig for me. Everything I have other than my houses is paid for. I sell mostly on ebay (yeah they suck) but even though I have a website for my conversions and products I only reach a very small fraction of people that ebay does. So they are a necessary evil in my case.

Here is my website for info.

Mods---this is not a ploy to sell anything ok? It;s just for info to connect to the email message I'm referring to.

http://t56cablespeedometer.com/

Anyway in the email you will see they want to find a new supplier for cable drive housings. He said their current supplier is having quality problems. I've seen their work and yes quality is not job one by any means. At first I was excited about this, but then my next thought was they will copy my parts. They are big enough to afford to do that, but is it worth it to them? It's taken me years to research and develop these and it would be a steep learning curve on them if they did that.

So here is the email from them. So opinions on this? Should I take a chance and have possibly have my parts copied, or am I biting off more work than I can handle?



On Wednesday, November 27, 2024 at 07:44:21 AM PST, customer Support <support@shiftworks.com> wrote:




Good morning,

My name is Joe, and I serve as the Lead Tech/Customer and Dealer Support Manager at Shiftworks Inc. I recently had the opportunity to explore your website and was truly impressed with the quality and range of your products.

I have a few questions that I would appreciate your help with:

1. For the 4L60 and 4L70 transmissions, do you offer models that include the tailshaft transmission mount?
2. I currently have a 4L80 transmission in my 1988 Chevy Caprice and am considering using a tailshaft from your company. Before moving forward, I would like to review the installation instructions to ensure compatibility. Would you be able to send me a copy for review?
3. Shiftworks Inc. is actively seeking a new supplier for mechanically converted tailshafts. Our current supplier has unfortunately not been meeting our quality standards recently. Would your company be open to discussing the possibility of a partnership in this area?
4. Lastly, we would be interested in receiving a loaner tailhousing to inspect the quality of your product firsthand. We would be happy to return it within a couple of weeks. Should there be any concerns about the return timeline, we are willing to provide a credit card for collateral, ensuring the return of the kit as agreed.

Thank you for your time and consideration. I look forward to your response and hope we can explore opportunities for collaboration.

Kind regards,
Joe
Support Team Lead
shiftworks.com
(585) 924-2700

 

[Tom1948]

I would contact a lawyer who is skilled in this area. That seems to be the trick companies use to steal your ideas.

 

[coolidge]

Agree on the lawyer. But also is there sufficient volume to even bother stealing it? If the market is 10k or 100k parts per year or something okay but if this is a small niche market most commercial shops would not bother with you could be safer.

 

[jwmay]

If they wanted to steal it, they could have just bought from you and done it. It’s a tale as old as time. A former employer here wanted to offer a better product, and that’s how they did it. Bought what they wanted to copy, tore it apart, drew all the pieces, and got their better product…allegedly.

Got in some trouble too.

That said, I have no freaking clue. Good luck!

 

[alloy]

My ebay sales alone for the last 90 days are $20,847.25. So on the average $75k per year typically.

I understand the attorney, but what will keep them or someone they hire or another company from copying my work?

 

[alloy]

If they wanted to steal it, they could have just bought from you and done it. It’s a tale as old as time. A former employer here wanted to offer a better product, and that’s how they did it. Bought what they wanted to copy, tore it apart, drew all the pieces, and got their better product…allegedly.

Got in some trouble too.

That said, I have no freaking clue. Good luck!

Yes I'd thought of them doing that. I'm still thinking about it.

I have other products beside the transmission housings also. I just came up with a way to fix a broken starter mounts on a chevy v8 using a mini gear drive starter.

 

[mmcmdl]

My gut feeling on this is if you are doing well which it seems like you are , ignore the offer .

 

[jwmay]

I have other products beside the transmission housings also. I just came up with a way to fix a broken starter mounts on a chevy v8 using a mini gear drive starter.

I think you and I have different ideas about what retirement means. Lol

 

[MontanaLon]

Agree on the lawyer. But also is there sufficient volume to even bother stealing it? If the market is 10k or 100k parts per year or something okay but if this is a small niche market most commercial shops would not bother with you could be safer.

Looking at their website, it looks like most of what they do is niche parts. I mean there can't be a huge demand for 64-74 muscle car transmission parts. I'd be willing to bet, after I looked at google earth and seeing they have a 9,000 sq ft building, or a part of it that they don't do a whole lot of manufacturing themselves. This can be good or bad. If they aren't doing their own manufacturing, then someone has to be doing it. Are they just designing and having the chinese manufacture to their specs? Probably and that is bad. If you send them parts it won't take long for them to reverse engineer it and send it to the chinese to make and even if it is only 20 parts or so a month, they can get a lower unit cost and still make money while putting you out of business.

 

[Eddyde]

I agree that if they just want to steal your design they would simply buy one of your conversions and copy it. If you don't have an active patent on the parts, there isn't much you can do to prevent that. Unless, you do work out a deal with them and they agree to a non compete clause, that they won't steal your design, only buy the parts from you. I would cetrany have them agree to something like that before sending them anything.
And that's where lawyer becomes necessary, to ensure you are protected as best you can be.

Also it sounds like these guys are more about selling than making as the mention their "current supplier" so maybe they are actually interested in having you be their new one.

But it's a lot to digest, I'd probably have a phone call with the guy and feel it out a bit more.