Status of Heathkit Resurrection

[Brian Wood]

I owe the list a status update on my attempt to resurrect Heathkit kits.

As many of you know, I created a detailed business plan for a revived
Heathkit kit business. I sent it to the president, and she forwarded it on
to a member of the board. I talked to the board member after he read the
plan. He said that they receive several offers every year, although most are
just offers to put the Heathkit name on someone else's product. He added
that they had never received a business plan before.

He said they had been toying with returning to the kit business, but were
leaning toward partnering with an existing company (no specific ones were
mentioned), whereas my $40M business plan showed how to start it from
scratch with about a $10M investment. He said they really didn't want to
spend that kind of money. (Too bad -- I really think it will take about $10M
to get it rolling again.) My plan called for entering the radio
communications (mainly amateur), R/C, tube audio and, on a limited basis,
ready-to-assemble furniture industries. The total of those markets is
currently over $2B, and I felt that reasonable (<10%) market shares would be
very achievable within a couple of years.

I had a few followup e-mails with the president, and that's where it stands
today. I'm not exactly waiting for the phone to ring, but there is at least
some hope that they will eventually follow through with a return to the kit
business, at least in limited form. I suggested to them that if they did,
they would need to do their homework, because the market would expect a
level of service far above the norm.

I did get to visit the current facility in Benton Harbor where the 31
remaining Heathkitites work. A wall in the back of the office has some
photos, flags and other memorabilia from the glory days, and I understand
there's some cool old stuff upstairs too. While there, I talked to Randy
Kaeding, who is on this list. If you're reading this Randy, thanks for the
tour and the chat. It was good to meet you.

I also stopped by the big Hilltop Road plant. It has been almost completely
renovated, inside and out, and is being sublet to various tenants. It's nice
to see the plant finally being used again. Perhaps Heathkit Co. itself will
one day occupy a section of that building.

Did any of you see "The Neverending Story"? The "Nothing" has engulfed
almost the entire Heathkit universe, but there's still a spark left. Perhaps
all we need is for "Bastian" to say the princess' new name (Moonchild), and
all of Fantasia...er, Heathkit...will be saved.

73,

Brian, W0DZ

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