When to call it quits..

dendendenden Posts: 23Member
edited March 2018 in Business
I've been open for 2 years in Northern West Virginia  and we have everything it takes to have a successful business. We have a nice paint booth, big media blast cabinet, large and small tanks and a brand new  7k square foot building. I've hit some snags, learning curves I guess, but all in all I get the jobs done. Our problem is that we are bleeding money.. In the red bad! We spend way more than we make. Our prices our fair, (.20 a sq inch plus labor) but customers still gasp at prices. I'm the only one in the shop. It's a family business, my sister and brother in law are the owners. We can't afford to get me help, I'm way behind on big jobs like motorcycle parts or I'm having too many failures with certain films. Can anyone relate and how did you cope? This community is great and thanks for any input, all is welcome.

Comments

  • LICCLICC Posts: 192Member ✭✭✭
    That's a tough question to answer because we don't know the P/L of your business and where you're  losing it.  Sounds like though your prices may be too low at .20 sq in. You're not gonna make any money that way. 
  • dendendenden Posts: 23Member
    Plus $65 an hour labor... Yeah it's a tough situation.. Working for family
  • dendendenden Posts: 23Member
    Plus I don't handle any of the "books" so I wouldn't know the profit and loss.. All I know is that we are broke and I'm only one person. All of our business is walk in so I have to stop everything and explain and sell our services. We've advised on radio  Facebook, and other social media platforms. We have our ffl and do a lot of firearms. Just trying to get through this rough patch. 
  • WileECoyoteWileECoyote Posts: 7,289Member, Moderator, Business Ninja El Moderator
    If your prices are that low you are gonna lose money. If the people in that area will not pay more than that for the product, then that is not a viable business in that area. You are never going to get rich doing "one off" or custom projects unless you are working on show products where money is no issue. You need to think WAY bigger. Look for companies that are in need of having a few hundred parts dipped a week.
  • DeviousDipsDeviousDips Posts: 1,911Member ✭✭✭✭✭
    @denden do you offer any other services with fire arms.  Cerakote , Duracoat, GunKote
  • MidOhioHydrographicsMidOhioHydrographics Posts: 10,219Member, Moderator, Business Ninja El Moderator
    I agree. Custom/walk-in work is a small fraction of our business. Approach other businesses and start there. Try to sell them cups for employee Christmas gifts at minimum. At max, talk to them about decorating the parts they manufacture. Production work, Consistent accounts that bring parts to you weekly or monthly, is what pays the bills and helps you make payroll.
  • K2ConceptsK2Concepts Posts: 14,095Administrator El Jefe
    You are asking for a long-term solution to an immediate problem. Here is the problem...you are bleeding money NOW...the only way to stop that is to cut your overhead drastically...almost to the point that you can barely function...I would not be worrying about getting MORE work...I would be worrying about cutting your overhead to a point that you can stay in business...then you will need to stabilize the business...THEN start back on your growth track...

    It's a 3 step process and if you can't do any of them?...You are already dead and you just don' know it...
  • dendendenden Posts: 23Member
    K2 I couldn't agree more!  I'm going to leave it at this, the owners (sister and bro in law) aren't even on this forum or any other groups to do with Hydrographics. I do everything but bills. I honestly had no idea what I was getting into. I know every job comes with its own kind of pressure and stress but damn Gina! I'm all over the place, trying to do 5 things at once. Thanks everyone for letting me get this out there. Greatly appreciate it! 
  • WileECoyoteWileECoyote Posts: 7,289Member, Moderator, Business Ninja El Moderator
    When was the last time you heard someone quote "Martin"...


  • MidOhioHydrographicsMidOhioHydrographics Posts: 10,219Member, Moderator, Business Ninja El Moderator
    @denden have you had an professional training for hydrographics?
  • OverCoatsOverCoats Posts: 359Member ✭✭✭
    What is your redo rate? Are you buying 5 meters instead of 3 because it’s a few bucks cheaper p/meter? There’s so many ways to hemorrhage money.  I agree with others here you might need to rethink your rates a bit and if it’s that important to you I would suggest getting your hands dirty with the p&l. If you don’t know your cost or your overhead, it’s hard to adjust your rates accordingly. Best of luck to you!
  • dendendenden Posts: 23Member
    edited March 2018
    @MidOhioHydrographics I've had 2 training courses. First was at Ozarks, I will never bad mouth but they didn't show me anything I didn't really know. 2nd was Chet O'Shea, what a great guy! He came to our shop and set us up and showed me many trade secrets and tricks. I don't want to call it quits guys but my situation there is a major lack of communication. I'm the shop guy, my bro in law was supposed to be too. But he has a construction company to run full-time. My sister is the owner who does not want to be the the owner. If that makes sense?  @MidOhioHydrographics you guys are only 2 hrs away from us, I'd love to see your shop and how you successfully run it. A great bunch of people here and I thank you all for your help and input. 
  • SreynoldsSreynolds Posts: 1,485Member ✭✭✭✭
    Might be time to take matters into your hands... If he don't help and she don't wanna be involved then whats the point in having them? Not being ugly but let them go....

    My stepdad and I are in business together, he handles all the paper work, purchasing, tax stuff, u get my point. I control the shop. We have a understanding about the business and work well together.

    On another note , you mentioned a FFL. That's a good way to make money also. A simple transfer on a gun could be 35/40 bucks and it takes 10 minutes to do. Davidsons still takes COD's , so I get the customers money up front and nothing comes outta my pocket.

    Get on YOUR grind and get it ........
  • dendendenden Posts: 23Member
    @Sreynolds, we make $25 from transfers. My sister does all bills, taxes, ect.. But she doesn't want to learn more about it than she has to.. Idk? And it would be me that would walk away  this is their business.
     This thread is about spent.. I'll start another one soon. Thanks again! 
  • MidOhioHydrographicsMidOhioHydrographics Posts: 10,219Member, Moderator, Business Ninja El Moderator
    You are welcome to stop down! I’m busy and between my hydro shop and another local business but my 5 guys are there full time. I’d be happy to show you around a bit. Just let me know a day and time that works on your end and I’ll see if I can make it work on mine. We are going to be running some pretty large runs of parts soon. .
  • dendendenden Posts: 23Member
    @MidOhioHydrographics yes soon! I'm going to try and talk my sister into joining me. We are having a "company meeting" today and I have plenty to say. You've been very helpful and I hope we can get together this spring. Thanks  
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