Price vs Cost- The bottom line

[Aardvark]

Not really a question but as I furiously attempt to get a small shop up and running I have noticed that the prices charged by some of the larger PC operations in this area (Austin-San Antonio-Houston) for small batch runs have started to drop to the point where profit margins are narrowing...especially on batch or repeat items. As an example- A guy who builds pitching machines and has them PC'd in San Antonio....He sends them to the Coater at around 25 at a time...I know volume is/can be cheaper but he is getting them prepped and coated for what the powder alone would cost me....

Seems like the Big Box Store mentality of having "Loss Leaders"- Stuff you sell at a loss to bring customers in for the profitable stuff (Which really kills the little guy just trying to get by)- has found its way to the Coating Industry. Or maybe its been there all along..Since I'm new to this world, I hadn't previously paid attention....

I'm sure that by buying powder in the hundreds or thousands of pounds at a time saves the bottom line- And that is just Business.

This wasn't meant to be a ranting post (Sorta ended up that way)-

Just and observation............

[hvac36]

Re: Price vs Cost- The bottom line

Here is the deal on Powder Cost.
if you buy 1lb you pay about 12.00 per lb
You buy the same color in say 100lbs you pay 4.95 per lb.. Big cost savings.
So if you know you are doing a big run you by in Bulk.
I do about 30 Truck rims aweek for a trucking company in Matt Black I buy this in 100lb box's I pay 2.95 per pound. Thats a lot of rims. I charge per rim $15.00. Now I do not make much on those but they send me other parts ( Drive shafts, Springs etc) I make up for my loss .. So yes losing profit here I make up for it there...

Jim S...

[52fordpickup]

Re: Price vs Cost- The bottom line

The facility I work at has a 35' X 40' oven and they have it running nonstop. I'm helping them build a new automatic PC system with oven this summer, but that's not the point. I talked to the owner and they pay around $4.50 / lb for the powder they are shooting. But they have to buy it in 100lb amounts. If you have the need for a lot of the same color go for it, and buy big. But for those custom jobs, such as 3 coats on a valve cover, most big shops wouldn't tackle a job like that. Those are left to those of us who do it more for the enjoyment than to make a pretty $.01!!

[dekebell]

Re: Price vs Cost- The bottom line

Hi Jim,
How are you PC'ing the two colors, like on the silver valve cover in your pictures? Are you masking them off, or is there another trick?

Thanks,
Deke

[hvac36]

Re: Price vs Cost- The bottom line

Hi Jim,
How are you PC'ing the two colors, like on the silver valve cover in your pictures? Are you masking them off, or is there another trick?

Thanks,
Deke

Just a lot of Taping
The other trick is to use High Temp Stencils (sp?)

Jim S...

[hulk30]

Re: Price vs Cost- The bottom line

Just a lot of Taping
The other trick is to use High Temp Stencils (sp?)

Jim S...

can you tell me where i can find high temp stencils please