A golf cart dealer wants to sell lithium conversion kits to customers with older lead-acid carts. The supplier’s price list is clear, but the dealer has not worked out what the kit really costs once support, stock and returns are counted.
Price a kit from its full landed cost, not the supplier’s unit price: add freight, duty, charger and wiring parts, support time per install, warranty handling and the cost of holding stock. Then set margin on the whole figure. A kit that sells quickly and installs in one visit pays well; a kit that needs two visits per cart or a slow-moving model variant can cost more in time and stock than the margin earned.
The cost lines to add up
- Landed cost. Unit price, freight, insurance, duty and the broker’s fee, divided by the number of kits in the shipment.
- Parts that go with it. Charger, cables, fuse, voltage reducer and mounting. Redway’s installation and wiring guide lists conversion parts; use one standard kit per cart family.
- Installation time. Count technician minutes per cart from your own jobs, not the supplier’s estimate. The first five installs usually take longer.
- Support. Phone and return visits per sold kit. Track them for three months and use the average.
- Warranty handling. Redway’s golf cart warranty is 3 years, and 5 years on the 48V 100Ah model. Set aside time for claims; our RMA article gives the steps.
- Stock. Voltage and size variants multiply stock lines; Redway lists 36V, 48V and 72V golf cart packs. Hold fewer variants and order the rest to demand.
Setting margin
Set the margin as a percentage of the full landed and support cost, and test it on three kit types: a fast-moving one, a slower one and a customised one. OEM custom orders have no MOQ by default (1 piece), although some specific products carry a 10-piece minimum, so confirm for your model. Check cash tied up in stock against your normal payment cycle. Redway’s dealer guide gives background on dealer buying.
When a kit stops paying
Review each kit type every quarter. If a kit needs repeated service visits, has frequent returns or sits in stock for more than a season, change the price, drop the variant or bundle it with a faster-moving item. A smaller range with clean installs usually earns more than a long list of kits that each need special handling.
Risk limits
No margin figures are suggested here because dealer costs and local competition differ. Where a kit needs controller or wiring changes, confirm compatibility with the cart maker’s guidance and with local rules, and keep the customer informed about warranty on the cart itself. This article is general guidance for dealers.
Additional perspectives
Pilot with ten kits for one cart family. Record time per install, calls per kit and returns, then set a price that covers them. Expand the range only after the pilot data supports it.
Redway Tech Editorial Team – Dealer principal perspective
Standardise the install: one wiring diagram per cart family, one torque list and a commissioning checklist. A repeatable job is the largest single lever on kit profitability.
Redway Tech Editorial Team – Service manager perspective
Convert stock days into cost: if a kit sits sixty days, charge the cost of capital for those days to the kit. Slow lines that look profitable on paper often lose money after carrying cost.
Redway Tech Editorial Team – Finance perspective
Specifications are taken from Redway product pages as of October 2026. Where a figure isn’t published, this article says so. Confirm current specifications for your model with Redway before ordering. This article is general guidance, not a site-specific engineering assessment.
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