I have a good problem! Looking for feedback/advice

[lws380]

I have a very good problem. I'm swamped with orders.

My orders continue to increase and there seems to be no let up in sight. I feel that I need to do something to try and slow the orders, assuming that I can. But I'm not sure what to do. I thought I would ask you guys for some feedback as I value the thoughts and comments from the members of this forum.

I'm running at least 12-16 weeks to get holsters out and would like to slow that time line down and possibly reduce the time. I raised my prices back in Sept slightly for a front and back pocket holster thinking that would help. The result was that orders increased. That was even before the gun ban talks started, which has made it even worse (with increased orders).

Another thing that I really do not want to do is hire employees. I don't need that headache. Just a little bit of back ground. I'm semi-retired as well as my wife. I am not really dependent on my holster business. If could not make another one, we can survive and still have something to eat. But at the same time, I love making these things.

A couple of things I was considering:

1). Raise my rates again to see if that slows the orders. I'm assuming there is a point where the cost will tun off a certain number of potential customers.

2). I also thought about only allowing orders that ask for an exotic accents. I think this option is like raising the fees. By limiting orders to exotic accents or full exotics someone will have to be willing to pay more for a holster. That again would turn off some of those looking for a plain Jane holster at a lower price.

3) Stopping orders for some time. I don't like this option.

4) Leave everything alone. I do state that I'm swamped with orders. I tell potential customers, that I will make them a quality custom made holster, but they have to be willing to wait. If they can't or are in a hurry, they should look for other options. This statement has not really slowed down the orders though.

I appreciate any thoughts or feed back you might have. As I said I value the collective wisdom of this group. Feel free to call me to discuss if you want, I'd be glad to talk to you. My number is on my website.

Take care!

Doug

 

[mukwah]

Maybe it's just me but I think you should just stop taking orders for awhile until you get caught up. Just explain the reason why on you website and I think people will understand. They will have to wait anyway if you don't.

 

[Slowhand]

I believe mukwah laid it out for you. Raising your prices did work and you don't want to hire help, so there you is.

 

[3Coyotes]

Every order is important. Due to very high demand please expect a 14 to 16 week delivery period.

 

[lws380]

Maybe it's just me but I think you should just stop taking orders for awhile until you get caught up. Just explain the reason why on you website and I think people will understand. They will have to wait anyway if you don't.

I have thought to do that. But from a cash flow stand point it is nice to have sales for cash flow. I have to buy enough supplies and especially leather well in advance of orders. One thing I've found out is you don't want to run out of leather, ever. That takes a little planning and a good amount of cash to pre-plan. When I order leather I have to buy 10 hides or more, as I buy direct from the tannery. That helps keep the cost of my leather lower by about 20% rather than going through a wholesaler. But at the same time it requires a few thousand bucks of purchases to stay ahead. It is a lot easier to stay ahead with a steadier cash flow. I just got a letter from the tannery that they are raising prices again, just after raising them 3 months ago. And they anticipate raising them again later in the year. So that will be 3 price increases in about 12 months or less. Increases are due to increased cost of Govt/EPA regulations regarding waste water treatment and the increased demand for leather in China. Also, dyes, hardware, postage and other things that I use are going up also.

Even if I don't raise prices in an attempt to slow orders, I will likely have to anyway, due to the increased cost of goods. Thanks for your comments!

 

[framedcraig1]

Raise rates about 20%. I also think that the trim idea is +1. I love every case I have from you..and have always thought that your pricing was very fair!. I don't think a 20% raise would be anything but fair to you. Might even slow the flow a tad...

 

[mukwah]

I could certainly understand a price increase. I think most people will also.

 

[rayzer007]

This present surge, like everything else in life, is only temporary. In a half year you may wonder where all the business went. I hope this is not the case, but I am just saying don't expect this present boom to continue forever, as it may be shorter-lived than you think.
My $.02

Ray

 

[bigdogdaddy]

I sent you a PM. Hopefully it is helpful. If not, put it in the round file.

 

[millsriver]

I don't agree with raising rates due to reduce high demand. That sounds a little like taking advantage of a situation. Most people will appreciate your situation as long as you communicate well. Knowing that your product is first rate and therefore in demand should help keep customers patient as long as they know what the wait time will be. I don't remember ever being in that big a hurry to get a new holster.

 

[SkipD]

I agree with those who essentially suggest that you simply let the customers know of your backlog and let them decide to wait for the quality rather than going to a high-production so-so quality vendor. There will always be customers who are willing to wait for a premium product.

 

[davevabch]

Do your skill as usual, everyone knows about the backlog problems with all things associated with firearms now, including accessories. DO NOT GOUGE THE CUSTOMER NOW. Simply state the situation to them, explain to them why you do not want to raise prices, why hiring extra help now will only mean laying them off later when things return to normal. Tell them you will work overtime for them for a rush order and charge accordingly.

 

[framedcraig1]

Not disagreeing with the past few comments. I do think that a 20% hike is very much in line with the work you do Doug. I just think that it would get the stream of orders in a little smaller amount. Your call Buddy!

 

[davevabch]

Don't most major companies post 'not taking orders for x weeks?' Raise prices? what will customers remember in the "LONG TERM"? I get many of the mail catalogs from the major retailers and they are posting the same prices for ammo. Just out of stock. If the catalogs start posting inflated prices like $24.99 for a box of 50rd 9mm, then they can just go jump in a lake.

I have one gun shop that will sell ammo at regular prices when he gets it in. He will post a sign saying he will have to limit the number sold and not gouge his customers. Another gun shops just sells the stuff for a outrageous over price. I would never buy anything from him. Just my thoughts. I just do not think over pricing the product will get you any where down the road. If you feel your product is under-priced even in normal markets, then raising the price is justified. Just my thoughts on how I buy and the reasons I stay loyal to my gun shop.

 

[Silverfox1]

4) Leave everything alone. I do state that I'm swamped with orders. I tell potential customers, that I will make them a quality custom made holster, but they have to be willing to wait. If they can't or are in a hurry, they should look for other options. This statement has not really slowed down the orders though.

Doug,
I think you have answered your own question in the above statement. I don't think you really want to slow orders, so long as your customers are willing to wait for product. Don't raise prices unless it's to account for increased costs of materials. You don't want to undo the goodwill you have built for your business so far. You might consider priority orders for customers that are repeat customers. Just my thoughts.

 

[lws380]

Don't most major companies post 'not taking orders for x weeks?' Raise prices? what will customers remember in the "LONG TERM"? I get many of the mail catalogs from the major retailers and they are posting the same prices for ammo. Just out of stock. If the catalogs start posting inflated prices like $24.99 for a box of 50rd 9mm, then they can just go jump in a lake.

I have one gun shop that will sell ammo at regular prices when he gets it in. He will post a sign saying he will have to limit the number sold and not gouge his customers. Another gun shops just sells the stuff for a outrageous over price. I would never buy anything from him. Just my thoughts. I just do not think over pricing the product will get you any where down the road. If you feel your product is under-priced even in normal markets, then raising the price is justified. Just my thoughts on how I buy and the reasons I stay loyal to my gun shop.

Good thoughts. Pricing is an interesting animal. If I raise prices, am I over pricing the product? Of course the answer is in the eye of the beholder. I can tell you right now, there are tons of potential customers that probably think I am over charging/gouging right now. They would never buy a $60-$70 basic holster from me, when they can go get a $15-$25 holster somewhere. So a $105 exotic accented holster, made from horse hide, probably makes them think I'm totally crazy and way out of line. You might even think that yourself and I understand the thought process. So in a way, I've already ticked off lots of potential customers due to my current pricing. I even had a guy call me and said he liked my holsters, but thought they were over priced and wanted to know if I would sell him one for (X). At least he was honest in his request. But so was I when I said no!

I will point out that I get extremely good comments about my holsters. I had a guy two days ago tell me it was the best holster he ever owned. I told him that I hoped he had more than one holster. ;D He said he had 20 holsters and it was the best. After I made holsters for a while, I got lots of nice comments. At first, I thought they were just being nice. But after you get several hundred nice comments you start believing you are doing something right. After 6-7 years of making them, I have yet had someone tell me my holster or other product sucked and they wanted a refund. I have had many customers tell me (unsolicited) that they thought my pricing was under priced for the quality that they got. I do pride myself on making quality holsters and other products. I know customers that get them notice the quality in the material and the craftsmanship, because they tell me so.

I understand that If I raise prices, I will lose some customers. I have raised prices before and I'm sure I lost some. But at the same time the orders increased. I attribute most of the increase to changes in my website with better pictures, new sections on exotics, and belts. Those changes occurred about the same time as the price increases. For instance, I made belts but never really stated that I did. I just had one picture in the gallery and that was it. I've found that if I show pictures and have a belt section, people buy them. Imagine that! So even though I lost customers, the changes to the website brought in more than I previously had.

 

[lws380]

Some other general thoughts.

I've even thought about stopping making holsters and just concentrate on my Concealed Caddy™. I think the Concealed Caddy™ has the potential to be a decent business on its own and orders for the Concealed Caddy™ continue to increase. I could do a good number of things to sell and market them much better. Heck, I just got a letter from a marketing company that wants to try and market the Concealed Caddy™ on TV. Great, just what I need. :

Also, at some time in the future I will likely want to ramp down the business. I'm not some young buck that has 20-30 years of doing this.

I think my thought process for me is this. Lets say I increase prices by (X) or limit production to exotic holsters only with no current price changes. So I just ticked off a number of potential customers and lose them. But I still wind up with a 6 week delivery time. Would you do that as a business person?

I've found that there is a fairly high demand for exotic stuff and a good portion of my increased orders have exotic options. I've found that a good number of people want to bling up their holster and are willing to pay for it and wait for it.

Another reason I would like to slow down orders is customer service. I do like talking to customers about the holster. As my orders increase drastically, that gets harder and harder to do. But I don't want to get away from that. Call Galco and tell them you want to take to the person building your holster as you want to discuss it with them! But at the same time the more I communicate the less time there is to build. Is there some value in the communication? What is it worth? Custom holster makers can provide these things, big manufacturers can't and won't.

Thanks for all the comments.

 

[SkipD]

Doug, to me it sounds like you should do whatever makes you happy while you're doing it.

I, for example, like to design things and create them - whether they are made from wood, metal, electronic stuff, leather, photographs, or whatever. I don't think that I would enjoy doing rote production of anything for very long. I would begin to get bored and feel like I was employed at a factory again (the last time was over 40 years ago).

Would you be happy producing the Concealed Caddy or would you be happier designing and creating fancy one-off holsters? I'm guessing that you would possibly enjoy either selling the Concealed Caddy business to someone or possibly farming out the production and marketing of them while taking a cut on every one sold.

If you really enjoy making premium holsters (and that's what I'm understanding), then keep doing it but simply tell the customer base that you have a six to ten month backlog if that's the case. Price the product based on what it's worth and in a way that lets you purchase materials in an efficient way.

I'm not a business person, per se, but I know that being happy with whatever I choose to do - especially what I choose to do for income - is the most important factor as long as the cash flow is adequate.

 

[lws380]

Doug, to me it sounds like you should do whatever makes you happy while you're doing it.

I, for example, like to design things and create them - whether they are made from wood, metal, electronic stuff, leather, photographs, or whatever. I don't think that I would enjoy doing rote production of anything for very long. I would begin to get bored and feel like I was employed at a factory again (the last time was over 40 years ago).

Would you be happy producing the Concealed Caddy or would you be happier designing and creating fancy one-off holsters? I'm guessing that you would possibly enjoy either selling the Concealed Caddy business to someone or possibly farming out the production and marketing of them while taking a cut on every one sold.

If you really enjoy making premium holsters (and that's what I'm understanding), then keep doing it but simply tell the customer base that you have a six to ten month backlog if that's the case. Price the product based on what it's worth and in a way that lets you purchase materials in an efficient way.

I'm not a business person, per se, but I know that being happy with whatever I choose to do - especially what I choose to do for income - is the most important factor as long as the cash flow is adequate.

I love making all this stuff. You are correct in that designing and making custom holsters is very satisfying and much more "artistry" involved. I think a Monkey could make the caddy if they knew how to glue and sew in a straight line. I'm still in some awe when I look at some of my holsters heading out the door. Yes, I could farm out the Concealed Caddy™ and one of the reasons I applied for a Trademark on the name was in the event I ever wanted to sell the name and let someone else make them under that same name.

I agree with the factory line stuff. I actually worked at an air conditioner MFG. out of high school on an assembly line. The first day I was working like all get out and thought lots of time had past. Looked at my watch and 40 minutes had gone actually passed. Never wore my watch to work again after the first day. Thankfully they laid me off after about a year later and got me out of my misery.

Thanks for your feedback.

 

[redmond]

Doug-

I echo SkipD. Do what makes you the happiest and communicate that on your website. If you want to be a large scale mfg company, hire folks and go for it. Sounds more like you prefer the one-man, custom shop. Price your pieces to make enough to continue in business at the profit margin you need.

All of the custom holster shops seem to have a 3-4 month minimum delivery time, so I wouldn't worry about that. Yes, you will miss some sales, but there is a maximum you can produce regardless.

Most importantly, keep your quality where it is, so that you can be proud of what you make. I love the pieces you have made for me.