SFA: What's the Answer?
Running a Shop
isait19 Premium Member
Hello, My pops and i own and run our shop with not so much efficiency. Looking for ideas or systems to help run smoother withouthaving to kill ourselves like we have been for 12 years. Need to overhaul my shop with new system to run jobs the way it's supposed to without having to baby-sit crew. Also internally, is there such a program or system you guys use to split up company net profits and company expenses?? Maybe use different bank accounts for different expenses like tools, gas, etc. Any suggestions? T&T Stone
GuyboR Administrator
First thing I would recommend is to try and get to the SFA workshop in Effingham, Ill. There will be lots of fab-shop owners/employees there willing to help you out. Plus, Barry has an awesome shop, from what I'm told (I'm looking forward to seeing it first hand). Secondly ... give us some insight on your current equipment and processes so that we know where you are starting from. Splitting profits and expenses ... this is done by many using QuickBooks. It’s a computer accounting program to track income vs expenses. Guy Robertson Robertson Manufacturing Inc. Davenport, Iowa
isait19 SFA Member
I would’ve loved to make it but due to my current way of doing business, it ties a lot of my time including family time, which sucks. Definitely need a change but thanks for responding. I hope next time we will. Current equipment:Bridge saw 2000 GSC Matrix, manual router for edges, and hand grinders and polishers. All-by-hand shop. Process: Pops and Ibid/quotes, template, pick up material, fab, install. Ithink finding reliable guys is our issue here though we raised our pay from $18 hr to $22 to try and see if that makes a change. But right now we are pulling crazy hours and picking up the slack from no-shows and remakes from guys not as detailed as we like, which is killing us. Also all income that comes in seems like there is no control,and company profit is not what we think it should be, especially with working almost seven days a week. We do use QuickBooksbut just started so still trying to figure that out; we got my mother and wife on board with it. We have enough work to grow, but we are not running the way it should be or somewhat smooth.
Tim Farr Premium Member
Finding reliable help is hard. Skilled reliable help is next to impossible. Go digital ASAP. The labor market is not going to improve any time soon IMO. Also very important to know your cost to fab and install. Sometimes the best jobs for you are the ones you don’t get. Tim Farr Stoneworks of Augusta Inc. Augusta, Ga
isait19 Premium Member
That’s what we were thinking about but not sure if we can qualify or the process of it. Any one you know that can help? Fab and install price is $27 ft² and that’s competitive here. Plus sinks and other cut outs.
Tim Farr Premium Member
It doesn’t matter what’s competitive. What does it cost you to produce and make profit? That will determine if you can be profitable at $27.
ufGatorHarv Premium Member
I'm going to be brutally honest with you, and you may not want to hear this or may think I'm an idiot, or may not think it's possible but .... I don't care where you are located, but $27 per ft² is too low. The single biggest thing you can do to make your life easier is to figure out how to raise your price and find customers willing to pay it. Better website? More reviews? Better sales pitch/funnel? Higher quality fabrication and install? We are at $55/ft² for labor plus materials with a 35% mark-up. I don't know if your $27 includes the material or not, but at the very least, I can do HALF the work you have to do to gross the same amount. It didn't happen overnight, but our phone rings with zero advertising, and we have over a two-monthlead time. Chris Harvey www.JacksonvilleCountertops.com
Tim Farr Premium Member
You can stay home and make no money. Don’t work for free.
Austintops
I have a small solution for you. If this works it would help you both a lot. I work alone in my shop making two kitchens per week. You know its a lot of work. I have a plan though. You template, you make your kitchens in your shop,and sub installs out. Find sub contractors. Get copies of drivers’ licenses. Give them a job just to install and go and watch them install it. Let the sub installer cut and fabricate your sinks. Max price cut and polish: kitchen $100 , bathroom $50 Sub installers went from $6 per foot to $7 per foot now. Just take care of them. Supply your template layouts, supply dishwasher brackets, sinks, etc. Once they’re done installing your kitchen have a sign-off sheet for your client. Sign & date. Did they do a good job? Does the sink look straight and good? Did they caulk everywhereand clean? If everything is good. Have your job printed out by the square foot, show sink cut, etc., so you can write on this paper the amounts of money to pay your sub. Fill out your check and at bottom put customer name or address. This will free up more time for both of you. Gotta help each other till you can afford a CNCsaw. Everyone is struggling to find people. Just do what you can do. Enjoy your life.
isait19 Premium Member
I see what you’re saying. $27 is just fab and install included. Material is separateand we add another 20% mark-up to it or more depending on material cost. The profit is there; we just need to learn how to manage it. In order to raise my costs i need to have the right crew and process running a lotsmoother than it is now. I’m sure i can up my cost. A good chunk of our work is referrals or repeat customers. Just recently got ourselves on payroll. We used to get cash all this time. How do you get paid?
ufGatorHarv Premium Member
We use ADP to process our payroll, and I get a direct deposit and W2 just like my employees. We use Wave for accounting, invoicing, and customer payments. We take cash, checks, cards, and ACH. It is super-easy. We used to use QuickBooks, and I like it better. The accounting/invoicing is free, you only pay if you use them to run cards and ACH payments, which we do. https://www.waveapps.com/
HaldenLucero Premium Member
I’m in a similar boat. Started with all-by-hand shop with my pops as well. Couple suggestions: Keep getting equipment and looking for ways to make your process and work as easy or easier as possible. Certain equipment can lower the skill required to produce quality work, which means an easier time teaching new employees. I’m nowherenear the level of the other big guys in here with CNC machines,but the things I have got and the way I’ve changed doing certain things have sped my productivity up a lot. But my biggest thing I want to share is: Don’t kill yourself doing this. Coming from someone trying to do everything at this stage in my business, it is invaluable you have time for yourself outside of work and get enough sleep. I can produce far more work in 6 hours if I get 8 hours of sleep and work a 5-dayweek and eat well, than if I sleep 5-6 hours and work 8 hours and eat like crap. If you’re sinking profits back into the business to fund better equipment then it’s worth it to take a personal pay cut if that means you’ll get something to make your time working easier in the long run if you plan on being in here for a longer time, especially if you’re doing lots of the work yourself. Halden Lucero Arizona Granite Services
ufGatorHarv Premium Member
That advice from Halden is very sagacious.
Baoser Premium Member
Lots of good ideas on here. I cannot stress enough about going digital. We got our laser template machine first so that we could get used to it. Then we bit the bullet and got a CNC. Be sure to buy a CNC with good customer service. You will need it while getting use to the machine. I drug my feet on a CNC for 5 years. I wanna slap myself for waiting so long. Production, mistakes and most importantly time will be curbed instantly. Good luck,sir.
Stonemasters Premium Member
At $27 ft². I'd be packing up the shop and looking for a new career. Average is $45-$65 in my area. It's no wonder things are hard. Are you taking dollars to the bank or margins? Cut your losses by getting more jobs based on quality products and service. Otherwise, you’rejust running another rat race! Mark Fetters
isait19 Premium Member
Definitely rethinking strategies/plans on what to change to make it more worth it. This is not easy. Another note, how do you shop owners pay yourselves? Salary or less than a regular employee?
HaldenLucero Premium Member
Just enough to cover my personal expenses. Talk with a good CPA. You can be writing off a lot of trips as deductions for your business, meals, doctors’ visits, things of that nature. The more you pay yourself in cash from the company account, the more you’re getting taxed.
BReynolds Premium Member
You need to raise prices immediately;you honestly should more than double the $27 ft². We are well over an avg of $100 ft², but I know that's a little rare in this industry, but it shouldn't be. This business is hard! At $60 ft²you only need to do half the work you are doing which will free up your time to put processes and people in place. You also need an accountant ASAP; they will save you more than they cost you. I pretty much guarantee it. Brandon Reynolds