RE: [PSUBS-MAILIST] Sub building business

[SFreihof@aol.com]

Hugo;

One of the biggest stumbling blocks that must be addressed before even contemplating a submersible market is product liability.  Piper doesn't build single engine airplanes anymore because the product liability insurance costs are higher than the production costs.

Aircraft Kit manufacturers get around this by calling them "Experimental," and any structural failure cannot be attributed to the kit manufacturer since he didn't build it.

Has there been any legal discussion on the liability problems of a venture of this type?

Anyway, put me on your list...

Stan

In a message dated 12/22/2004 8:23:50 PM Eastern Standard Time, "Hugo Marrero" <hmarrero@hboi.edu> writes:

>
>Hi guys,
>
>While I have not been posting much lately, I have always kept reading all
>the interesting postings in this forum.
>
>Just like many of you, I have been toying with the idea of making private
>submersible ownership available to the public in general. And while I have
>higher purposes in life, I have never really stopped pondering on how to
>make this happen. Since I see some interested in this, I want to share some
>of my thoughts to gauge the level of passion & commitment for creating a sub
>business.
>
>The existing problem is not the product (e.g. the sub), but rather the
>market...it's a catch 22.... In order to manufacture and sell enough subs to
>survive, a viable market must exist. In order for that market to exist, the
>price of the vehicle must be competitive enough to keep sales coming in. In
>order to keep the submersible price competitive you need to keep your costs
>as low as possible. And in order to keep the manufacturing costs low you
>need a viable market. I am sure all can see the problem.
>
>Also there is the infamous Lemming Effect... since the "Joneses" don't own a
>private submarine no one wants to be the first to buy that sub as people
>hate uncertainty. Once the "Joneses" brave enough buy their sub then is
>easier for the rest to follow.
>
>Since it takes a lot of money to start up, is difficult to prove that there
>is a market to investors, and the record shows that most everyone who has
>been brave enough to start is either out of busines, have only built
>prototypes and have never progressed further or have never even got past the
>conceptual planning stage. Therefore is a very risky venture and extremely
>hard to get even your beloved rich uncle to lend you $50K to build a
>prototype.
>
>Since a sustainable market for private submersibles does not exist .... a
>way to create a market for private submersibles from scratch must be
>devised. The question is... How in the World do I do that? This is the
>question that I have been asking myself for almost 12 years. To find an
>answer to this question I have dedicated hundreds of hours collecting data,
>analyzing business models, and studying the marketing schemes of industries
>that have contended with similar issues successfuly.
>
>From this, I believe, in my own humble opinion, that I have devised a
>concept which may potentially create a market large enough to reduce the
>cost of ownership of a private submersible to make it attractive enough to
>spark an interest in the general public.
>
>With this I want to add a peronal note. I am interested in this for many
>reasons, but the most important reason is because I love  submersibles and I
>truly believe that they should be available to the general public. Since
>1991 I have had the privilege of making a decent living working with
>submersibles, and I can continue doing what I am doing and retire
>comfortably doing it. However, If I can make a decent living sharing my
>passion with others, and creating something of value for others, that would
>be much more rewarding than enjoying it all by myself. My intent is to
>continue doing what I love to do, and shrare it with others, while making a
>living and having fun doing it. The moment is no longer fun is the time to
>get out.... that is my personal belief.
>
>I am willing to discuss this with anyone who is seriously interested in
>getting involved in it. My only requirement is that all who are truly
>interested in this must sign a non-disclosure agreement. If anyone is really
>serious about this, this should not pose a threat as it is a common business
>practice. If from these discussions enough interest is leveraged, it may be
>possible to form a venture which could be mutually beneficial (or mutually
>catastrophic) for all involved.  :-) These discussions could take place in a
>private forum online, or at psubs discretion, a private forum could be set
>up here.
>
>What do you think? Post your comments online....
>
>Take care,
>
>Hugo
>
>
>
>
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