take the train or let it pass

Industry Talk
1

…kind of thinking out loud, but seems a little story to tell in these times of changes: Today I went to the local surf shop to talk board prices for some orders; prefer to deal directly not by phone, even less by emails. This surf shop has a stock of around 100 new boards and also used boards in other area. For the first time arrived today, PS Chinese boards like NSP or Walden, etc, but the list price will be somehow high…

Anyway,we were the talking about different boards, machined boards, clear sanded fcs plug boards, etc then the guy said me something like: "hey bring me boards, that you normally do not sell in the surf shops, like long boards with all the rings and bells, etc, no matter the price!! I just put 50% of the money on your bank account…! to start

Normally they sell 2, 3 std shortboard of 3 brands per 1 of my boards, but they want to have all types of qualities and styles

The fact that they wanted lots of boards, with gloss, full color works, glass ons, different shapes, custom fins for boxes, etc

All for the next few weeks, and that s not possible right now for me due to my limited space until the next 3, 4 years…

I barely have time (due the wshop space) to fill the customers orders and some surf shop boards in time…

The bottom line is in this sea of Chinese boards, sanded clear std shortboards, marketing brand boards, a great opportunity for a board builder like me to see a bit of money besides the normal orders, but I said no, due to I do not have the space to afford those numbers (plus the customers in list) in 3 weeks or so…this is the second time that I let this thing to pass

40 boards between 450 - 800 Dollars per board in 3 weeks. Not bad, at least here. That prices for me, the surf shop charge on top of those prices.

So, with a bigger wshop, UV woven, right glassing room, H Ford type of working, you still work the same but fill all the orders; just one man operation, I m talking about complete boards (gloss, glass ons, making the fins, etc)

2

You're turning work away - that's a good sign.  Any time you have to increase overhead costs with the hope of "maybe" make more money, its a gamble, thats how good guys go under.  I'm a remodel contractor, not a surfboard maker, but I vote for the lower overhead, keep it simple, if you're making money now, enough to pay bills and put a little bit away, then stick with the forumla that's working!

3

…may be what you say is what I have been seeing with some board brands round the world (aided by the machine and hype) that after 5 - 10 years lapse, they disappear; in the main 3 surf countries (USA, Aussie land, Brazil) you see some brand that in a moment is “the thing” and then is nothing; to name a few: Blue Hawaii; Town and country; Base; Index Crown; all surfboards brands.

 

But, in this case I just losing money due to lack of space to cover that demand. I mean, working somewhat the same hours I can produce 3 times more with what I said in the other comment…

 

 

-the delete thing is the thread itself not that comment; the other is what I changed a “that” for a “those”, so the other is grammar better, but we just started to talk in this one, so delete the other thread.

 

4

"...So, with a bigger wshop..."

$$$$$

5

sounds like a cool deal overall,

sounds like he wants some top of the line boards. why not make a few bitchen boards give them to him and at least get your half up front then the other half is money in the bank. he should promise you the dividen in a fare amount of time wether he sells them or not.

I wish my guy would give me half up front

 

my 2cnts

6

…hello Kensurf, in fact, the guy order boards from me and I have kind of a “stand”, a place in his shop, and he pays me 100% (retailer price) for every board that I delivery; this time he wanted too much boards in few weeks.

I make not so much for the surf shops to keep my “boutique” niche intact; I do not want to let boards there for months and months without sell; bad rap for my boards, in my opinion; so I keep that stand with no more than 10 -15 boards in stock, so every time they sell one there s another to fill the space.

7

[quote="$1"]

...hello Kensurf, in fact, the guy order boards from me and I have kind of a "stand", a place in his shop, and he pays me 100% (retailer price) for every board that I delivery; [/quote]

wow, that's pretty rare, sounds like a great guy to do business with!

8

It’s nice to know that there might be some signs of life in making boards for a living. But you don’t want to expand for one big order only to find that was it.

9

A common tactic for big builders and developers here during the boom times, was to give a small but diligent subcontractor more work than they could handle.  They'd get excited, expand their shop / crew, max their credit to buy supplies, and get out and get the work done, and submit their billing. 

Then, knowing the subcontractor was in a vulnerable position financially, the bigger corp. would stall or withold payment.  In short order, the subcontractor would collapse under financial burden of bankruptcy, and the developer just got all that work done for free.

Word in certain circles was that if a superintendent on a big project wasn't putting at least two sub's out of business a year, he wasn't doing his job.

Not that its the same situation here, only that it illustrates that when you borrow or over-extend financially in order to grow, you are in a vulnerable position, and it has caused a lot of good guys to go under.

10

…hello Huck, yes, very good to deal with him.

he s got 9 more shops; each one dedicated or specialized in a theme (babies, gals, summer, casual clothing, etc) located in 3 towns.

But let couple of guys to manage the surf shop that have been working on that from late 90s.

I m not a pain in the arse to make business with me too ha ha.

For example, I do not recharge full color work (and the expensive paints that I order to a factory or the 3M expensive tapes) or some things that I need to order from other country.

Like I live in the “middle of nowhere” I prefer to have a stock of materials, so no time spent there and also a consistency in the boards, due to the same materials in all the batches.

 

 

–Hello DeanBonkovich, you are right; In my opinion, due to the machine, the industry will collapse and will be a “tyranny” of materials and design and no more custom orders as we know it.

But I need to expand to have more time and see some money if the orders arrive.

 

 

—EDIT: I just see your last post. Possible that is what happened with those factories that I mentioned?

11

Could just be a matter of waiting a few months to see if demand for locally made boards increases at all?

12

hey reverb,

Glad to know you’re so busy! We could use a little of that enthusiasm and support here in Santa Cruz… what was once a small independent (surf) community has been overrun like everywhere else. It’s good to know that there may be light at the end of the tunnel.

13

…hello Royal, well, I do not know if will be any light at all; just telling a little story in these machines times…

and I tell ya that I m a bit afraid of what will occur with this season and this shop and some of my boards surrounded by other brands and pop outs…

Also, may be you did not read all the thread but I said no to those orders (the bulk)

14

Town’s been over run for years.  East and West.  Widening a street to handle the increase in traffic means painting a new line down the shoulder.  Great surf though.  Which is the main reason it’s over run.