Are low throughput hydrodipping businesses viable?

shau2shau2 Member Posts: 112 ✭
in Business
I want to get into the hydrodipping business (in Australia).  Alas, I've heard some pretty discouraging level-headed advice about the dipping trade being economically unpalatable to regular Joe and Jane consumers.  Yet I don't have the high throughput needed to take on company contracts.

What advice would you give for me?
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Comments

  • MidOhioHydrographicsMidOhioHydrographics Member, Moderator, Business Ninja Posts: 10,501 El Moderator
    That's a difficult question without knowing very detailed information about the economics in your area. I've seen very few successful hydrographic shops only doing custom work. Typically they are part of an auto body or custom automotive/motorcycle shop, powder coating business, gunsmithing/firearm repair/custom firearm shop, etc. and Hydrographics is an added service.

    If hydrographics is your sole process (like my shop) then you need a lot of parts coming in consistently to make sure you can keep the bills paid each month. Custom work seems to come in waves. Production work can be counted on as repeat business, so it makes running the business more smooth and even.
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  • shau2shau2 Member Posts: 112 ✭
    @K2Concepts If I may ask, as the rare example of a successful dedicated Hydrodipping business, what's the breakdown of your hydrodipping customers in terms of custom work versus production work versus teaching the trade?
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  • K2ConceptsK2Concepts Administrator Posts: 14,177 El Jefe
    Well...I would say 2/3 to 3/4 of our total revenue comes from production customers...this year we have had a spike in custom work lately...many shops in our area have shut down so we are reaping the benefits...so it’s actually caused me to give some thought to the custom side lately..

    That being said? Like it was mentioned? Production will always be your bread and butter to keep the doors open...otherwise it going to be feast or famine...

    Keep in mind I have been at this for 13 years...so I got a leg up on most guys...
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  • NWHNWH Member Posts: 98 ✭✭✭
    I scaled my business down and only have a few OEM customers. But have a lot of repeat and custom work. Most dipper need to make a choice of either OEM and gear up for that or custom market and focus on that.

    First OEM is normally high volume to make descent money I put it like this if you are doing 2000 parts and making $5,000.00 before overhead typically in order to accommodate this type of work you would need a space large enough typically have a couple of employees after everything is taken out the company would profit on a good day $1000.00 that is after expenses. (Just an example)

    Custom work can produce that same profits if not larger because normally you may charge $150.00 for a gunstock and to make a $1000.000 profit only have to do 8 stocks.

    These are just examples.

    I like K2 have been at this a long time so I am constantly doing repeat work and picking up new customers because of word of mouth.
    Since scaling back I find that I am now making more $$$ with less headache and able to control my flow of work better along with picking what I want to do or don't want to do.
    NWH
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  • WileECoyoteWileECoyote Member, Moderator, Business Ninja Posts: 7,776 El Moderator
    The common thread is longevity. Your reputation sells your product. 
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  • shau2shau2 Member Posts: 112 ✭
    K2Concepts said:


    Keep in mind I have been at this for 13 years...so I got a leg up on most guys...

    @K2Concepts Do you spend money on advertising by Google and social media, or is it all organic growth?
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  • K2ConceptsK2Concepts Administrator Posts: 14,177 El Jefe
    shau2 said:

    K2Concepts said:


    Keep in mind I have been at this for 13 years...so I got a leg up on most guys...

    @K2Concepts Do you spend money on advertising by Google and social media, or is it all organic growth?
    @shau2 I do not spend a dime on advertising...other than this forum? Which isn’t really advertising?...I have my YouTube channel....Which isn’t really advertising either...
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