Are low throughput hydrodipping businesses viable?
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?
What advice would you give for me?
Comments
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.
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...
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