Hi, here is this weeks update.
As part of a training course I have nearly completed it has been part of my task to prepare a business plan. The result is a 500 item list. There are not sufficient resources, finances, or market sense to release all 500, so I am prioritizing them all. Progress is being made on 20 items at present.
As sales occur this will allow production of the next item, and so on.
The first completed item is the TNT M van kit. The last 8 kits are available for sale. When sold they will appear at the bottom of the list again. and it may be some time before considered for production again.
A 11 Limestone loads for HS, AHSA hoppers are now in stock. available as two , four or 6 packs . If you require larger quantities contact me for a price.
This means that items 2 to 22 are now underway. Attched here is that part of the 500 list. Orange are in production, and may have some stock available now, and sales mean the next process can progress.
Red are awaiting 1 parts, 2 finances, 3 time to produce or possibly all 3.
| TASK | FIRST TASK | |
| 2 orange | BK200/201/202 SAR M VAN KIT | UPDATE INSTRUCTIONS |
| 3 orange | BK 205 BRIGHTON CEMENT | new mould needed |
| 4 orange | D 272 BOXCAR WELL WAGON DECALS | FINISH ARTWORK |
| 5 red | BK 215 SAR D VAN | INCREASE STOCK TO 20 |
| 6 red | BK 243 HS HOPPER | ACQUIRE LADDERS |
|
7 red |
D 273 CUBICO BOXCAR WELL DECALS | FINISH ARTWORK |
| 8 yellow | A01 VR COAL LOADS FOR GY | INCREASE STOCK TO 20 |
| 9 yellow | A02 IP UNDIES | new mould to be made |
| 10 yellow | A15 HGM ROOF INSERT | acquire ladder stock |
| 11 yellow | BK 244 SAR H HA HOPPER KIT | UPDATE INSTRUCTIONS |
| 12 yellow | A 08 elx etc scrap loads | INCREASE STOCK TO 10 |
| 13 yellow | A09 mallee root loads | INCREASE STOCK TO 10 |
| 14 yellow | A10 ???? | INCREASE STOCK TO 10 |
| A 11 GREEN | A11 LIMESTONE LOADS FOR HS / AHSA HOPPERS | IN STOCK AS 2, 4, OR SIX PACKS |
| 16 yellow | CNR 81 BOXCAR 48FT CONTAINER | REWRITE INSTRUCTIONS |
| 17 yellow | BK 220 SAR DS | NEW MOULDS |
| 18 yellow | A13-BONUS-BULK | INCREASE STOCK TO 20 |
| 19 yellow | BK 225 SAR OC | UPDATE MOULDS |
| 20 yellow | A13 BULK | INCREASE STOCK TO 50 |
| 21 red | A 16 VR A/B CLASS PILOTS | new mould needed |
It is a continual juggling act for manufacturers to balance investment, time, demand for products on a constant basis.
I saw a post today with people complaining about a supplier and the original poster eventually said he wanted just one, but for the production of a run of maybe 500 items the $50.00 income from sale of one would be swallowed up many times over to produce a run. And poor Al copped a string of abuse from people for not satifying the 1 of each item people want.
Take a look at item 2 on my list. I have a limited number of decals and am re writing instructions. It will need new moulds soon, and sales this year to date are ordinary. So do I just walk away from that kit and cop abuse from those who want just one, or do I make what I can, build up some stock and when they are completed move on to another product that you want one or two of. ?
Remember that Al is in his 70's, has been supplying thousands of items over the last 40 years. Would you consider investing a lot of money to take over his business , or would you not even consider what it would cost to replace his current stock.
Or would you consider building up a business so you can be abused by the armchair gurus?
I have 200 decal items I would like to re introduce or produce tomorrow, So where do I find 50,000 dollars to print them all so you can pick one packet at a time AT $10.00 each. That would need sales of 100 packs per week to recover the $50,000 in a year. Very few of you know how many packets of decals the market needs per week. but you are upset if I do not have that one packet you need.
So if you play with the figures, I could sell decals for $50.00 per packet, but would I sell 1,000 packs in a year. Yes you would grizzle like hell, make sure your short arms would not reach down to your wallett, AM I CORRECT THERE???? This is the way it works for small Australian cottage industries.
Lets take a look at containers. I currently offer them at $15.00 each for a kit.
To make a new set of moulds, design and print decals to suit, invest in polyurethane it takes at least $500 to produce the first one. After that it costs quite a bit of the income to keep producing them, plus a lot of time.
So do I invest $30,000 dolars to get sixty back in stock, to maybe sell $10,000 worth in a year?? Or do I work with what I have available and introduce one at a time as sales improve finances. ??