Opening my own production warehouse

[lightningmcnulty]

Hi

Sorry that my second post is for help but i'm stuck.

I have had my business open for almost a year, I have up until now been buying my product from another frame store and now were busy enough that I think we need to open our own production place.

We sell between 27 and 35k per month retail and at present were paying around double the material price (per the catalogues) for production, 35k in retail sales equates to about 17.5k is cost to our vendor, I know that I can get the materials for at least 20% off the catalogue prices so I think we will make a good amount more money producing ourselves.

I can get the warehouse space for $1000 per month, I have a guy who wants to work for me (already a framer) and I have to pay him $500 per week $2500 per month inc taxes etc and I think equiptment rental will be around $1500 per month.

The first thing I would like to know is what do you guys think, from the figures does it seem like a good move?

also what equiptment do you recommend, I don't want to cheap out on stuff, i'm looking at the likes of the Wizard 9000 matte cutter, I prefer to go with slightly higher end equiptment to make the work better and easier.

I have noticed that most of the saws in the industry seem to chip the back edges of the moulding, are there good chop saws that prevent this or is it to do with the setup of the machine?

do I need a hot and cold press or just cold.

I'm not a frame manufacturer at this time but I learn quickly and Intend to do a couple of classes on the subject not to mention the fact that I have an experienced framer coming to work for me.

what am I missing here, what unexpected costs am I going to run into, I don't ever go into these descisions feet first so I want to gather all of the information before I make a move.

Any help is really appreciated.

Thanks so much everyone

Kim

[Keith Hewitt]

Hello Kim and welcome to what is basically a UK framers forum.
I see you have had 50+ views but no replies

Suggest you post the same question on The Grumble http://thegrumble.com/forumdisplay.php? ... ess-Issues
It's mainly a USA/Canada framers forum.
I'm quite sure you will get many more responses

I wish you very success in your venture

[misterdiy]

All I can say that if the volumes and turnover were UK figures it would definitely stack up, but it will be very difficult to make that judgement on US figures. We export quite a lot of mats to the US primarily because of the high cost at retail level over there so there may be very high costs involved in manufacture in the US.

The Grumble is the place to be.

[lightningmcnulty]

Thank you so much for the help, I will try there too

Kim

[Keith Hewitt]

See Kim has so far got 24 replies when he put this question on The Grumble.

[kev@frames]

saw your story on the G, Lightning. Good luck with it, keep us posted.