Richard-
There is a book callled "Selling the Invisible", and another called "The 22 Immutable Laws of Marketing". I don't have the authors as I am out of the country for a couple weeks. Both are fascinating, helpful and a quick easy read. Basically, in the end the are 2 dominant companies (Coke and Pepsi) and then the also rans (RC Cola). It happens like this in most industries over time (remember Wang computers). One of these books, I odn't remember which, says that for the luxury leader to start selling on price discounts is a potentially fatal mistake, as is product line extension (Bud, Bud Light, Bud Ice, Bud Dry, Michelob, Michelob Light today sell not much more than just plain old Budweiser did years ago).
You would rarely hear of Rolls Royce, Mercedes, DeBeers diamonds, the Mansion on Turtle Creek, or any number of other folks who had staked out the luxury or quality high ground selling on a dramatically low price point. In fact, I heard that DeBeers used to buy all the diamond output of Russia and dump them in the ocean, to keep prices high. Otherwise, this article postulated, men would bring home a dozen diamonds for their wives, a la' a dozen roses.
You have the technology niche- amatuer racers who want to drive old Cobras as fast around corners as a new Ferrari. Cool concept. You can never be the number one or two Cobra manufacturer, that looks like it will shake out to SAI/CAV and Kirkham, with ERA being the RC Cola (unless CAV closes), but, you CAN be the number one builder of race cars that look like Cobras. A smaller market. true, but, according to these books, it is vital to be #1 ot #2 in SOMETHING for long term survival and profitability. I would hate to be Shell Valley, Mid States, SPF or any number of other builders right now. I hope they have good day jobs!
These are not my original thoughts, but paraphrased from these books by so-called 'experts'. Just my .02 cents. Go buy those books. They were a real eye opener for my businesses.
I have a lot of admiration for the small businessman, who developes new things and takes them to market. Go luck.