Started my own business... business is good. ...too good?

[Leland Pate]

So, this year my wife basically told me now is the time to do what I've always wanted to do and start my own firearms business. We recently moved to Reno, NV and the timing was right to start my own business as the wife landed a sweet job and we don't need two incomes to be comfortable.

So, I formed an LLC, applied for my 07 FFL and even hopped for the 02 SOT (insert evil grin) and now I'm actively advertising my build services and am honestly surprised at the reaction I'm getting. I'm very quickly reaching a scary level of response and while a month ago I was worried about struggling to find customers now I'm trying to figure out how I'm going to keep up with demand.

Basically, I offer high quality build services for several fighting rifle platforms but the bulk of the work revolve around Kalashnikov style rifles: Saiga/Vepr conversions and complete AK builds.

I mean, it's a good feeling to get such a response from people and to have lots of work coming in... but I've seen this happen to people before where they get so swamped with work that either their product quality begins to decline or their delivery times begin to really suffer... causing a negative reaction with their customers. I'm trying to figure out how to keep these things from happening to me.

Thoughts???

[island911]

Easy. Raise your prices.




...and send me 5%

[kaisen]

I'm not an expert, don't own a gun, etc

But doesn't demand for this type of work/goods spike just before an election? Aren't they driven (somewhat) by fears that they will be banned?

If so, it's wise to play it conservatively, keep quality up, and be selective in anticipation of slightly relaxed demand post-election.

Again, I'm asking for people who know more about it to weigh in on whether that's accurate

[vash]

cool!!

congrats..maybe hire someone?

[Dantilla]

What's the long-term plan?

Go big, and hire employees, or a one-man custom shop?

If you want to stay small and insure nothing but top quality, then Island is right- Raise the prices, and limit new work. Schedule projects so wait times are reasonable, do not schedule more work than you can handle.

If you want to build something bigger than yourself, you will churn through lots of employees. When you get a truely good one, pay them exceptionally well, and you will have their loyalty.

Cheaper to pay well than continually train new faces.

[Rot 911]

Originally Posted by island911

Easy. Raise your prices.
...and send me 5%

Actually this is very sound advice and one I learned quickly when I started my own law practice. Most people equate quality with higher prices. Make sure you deliver on that. You will do less work for the same total income. Your reputation goes up because you do quality work. How many times have you heard people brag that they are on a waiting list to get what ever widget made by some well known artisan? Become that person.

[aigel]

A combination:

- Raise prices
- Hire at least part time help for some of the simple stuff. (shipping / receiving, keeping shop clean, preventative maintenance). Maybe a student or a retired person. You need to value your expert time. Swiping floors and packing for shipment are not good use of your time.
- Do good project planning and do not accept work that can't be completed in 3 months or less. It will be less harmful to turn customers down than to take their work and not return it for a year.

What do you think?

G

[stomachmonkey]

Originally Posted by Rot 911

....How many times have you heard people brag that they are on a waiting list to get what ever widget made by some well known artisan? Become that person....

Yup.

You see this a lot with tattoo artists.

There is only so much work that one person is capable of doing, it's purely a function of time.

People who want the best will wait months for an appointment and pay top dollar.

[BlueSkyJaunte]

Do you give an SCWDP discount?

[island911]

Originally Posted by Rot 911

Actually this is very sound advice ....

I'll be sure to send you your 5% of my 5%.

[Rick Lee]

Subscribe to every thread Fastfred starts and do the opposite of what he does.

Seriously, his posts are a perfect example of a talented guy with lots of work getting bogged down in stuff he doesn't specialize in - cust. relations, paperwork, shipping and delivery stuff.

Hire someone to do the stuff you shouldn't be wasting your time on that allows you to dedicate your time and talen to stuff that you can bill for.

Can you get me a deal on a full-auto drop-in sear like the $200 ones the ATF advertised in their Shotgun News stings?

[Chocaholic]

The vast majority of businsses that fail, do so because they are under-capitalized. Great product, great customer service and great intentions do not equal success in business. If you believe your businss volume is sustainable (at a minimum), you'd best consider investment in the infrastructure necessary to turn out consistently high quality in a timely fashion, regardless of the model you chose (as in previous posts).

You'll quickly reach a cross-road based on your description (or perhaps you already have). If so, invest wisely.

Lee - wait until a bit after the November election, the recount and the court battle to make any expansion decisions. Until then, work azz off and make everything you can. (no political statement or opine implied)

BTW - I'm in the market for an accurated up Polytech or Mak-90 with wood furniture, no thumbhole - can you hook me up?

[krystar]

maybe you are selling yourself short. how much do you pay yourself? minus health insurance? retirement savings?

other side of the coin. how much is the work WORTH on the market? business can be about selling the product at a % above cost margin, but it can also be selling the product at a discount off market VALUE.

[Rick Lee]

If you want to base short-term goals on the election results, I'd focus on things that are likely to be put in the crosshairs of a worst-case scenario new gun legislation package, since they'll always be grandfathered in any new ban. I'd consider the enhanced guideline-making powers ATF could get (or take) in order to bypass Congress. So that'd be commbloc-style rifles, anything .338 or above, especially .50 cal. and doodads like flash suppressors, hi-cap mags, mag extenders, folding stocks, grips. Seems to me the class III stuff is usually left alone, since it's already relatively rare in the general public and you probably won't do much business in the states that already ban that stuff at the state level.

[dennis in se pa]

"Easy. Raise your prices."

Good advise.

Take your time. Do good work. They will wait and pay the price for it.

[Leland Pate]

There is some very good advice in this thread, thanks. I really don't think the rush of people contacting me has anything to do with the election. It's just that there aren't many people in this line of work putting out quality/detail oriented firearms. The ones that do have up to a 3 year waiting list (ala Tromix).

I'm trying to be that guy who can do good work relatively quick. But I see a backlog piling up. I'm also in no way ready or able to move into a large commercial space, purchase machinery and hire employees. I'm just a one man show for the foreseeable future.

Thanks again for the input fellas.
Lee

[kaisen]

Best of luck Leland!

With how quickly you've tackled your FJ project, I'm sure you'll have no trouble keeping up!

[Leland Pate]

I work on firearms during the day and the FJ at night. It's proven to be an awful lot of friggin' work.

[fastfredracing]

Originally Posted by Rick Lee

Subscribe to every thread Fastfred starts and do the opposite of what he does.

Seriously, his posts are a perfect example of a talented guy with lots of work getting bogged down in stuff he doesn't specialize in - cust. relations, paperwork, shipping and delivery stuff.

Hire someone to do the stuff you shouldn't be wasting your time on that allows you to dedicate your time and talen to stuff that you can bill for.

Can you get me a deal on a full-auto drop-in sear like the $200 ones the ATF advertised in their Shotgun News stings?

So , I guess , my advice will not go far here.