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Re: [FOT] Am I wrong?

To: FOT@autox.team.net
Subject: Re: [FOT] Am I wrong?
From: EDWARD BARNARD <edwardbarnard@prodigy.net>
Date: Fri, 10 Mar 2006 06:50:51 -0800 (PST)
Steve: The lack of consistent schedules is something that is felt
through the entire industry. From the shop owners standpoint I have to
find reliable, reasonably priced, good quality places to bring any
sublet work to or get parts from. After a few years you find a machine
shop, chrome shop, radiator shop, glass shop, etc. that you trust and
are willing to stake your own reputation on. At that point you are at
the mercy of their schedule. As more shops, big and small, move
towards a Just In Time (JIT) way of working they stock fewer of the
slow moving parts which puts them at the mercy of their
suppliers. Couple this to most businesses over scheduling work so they
can assure their employees have 32 - 40 hours work per week, and then
trying to avoid O.T. to keep expenses down.

  In the DFW area we now only have about three chrome shops to choose
from. EPA regs are driving up the cost and lowering profit margins for
these shops. Rule out 33% of the shops because they do work you
wouldn't put your name on. I'm left with a shop that does great work,
at a good price, but has a 12 week turn around time. The second shop
has a 2-3 week lead time, but charges outlandish prices. I ask the
customer "how fast do you need this car"? That will dictate the price.
  The machine shop business, unless it does custom work, is a notoriously
low profit margin business. So many of the "$1200 long block installed"
shops are springing up, that the small places can't keep their margins at
a livable level.  But bring your race car work to that low cost long
block shop and they'll either laugh at you or screw it up.
  From a personal standpoint I can't keep a lot of high end or slow
moving parts in stock. I can't tie up the cash on something that might
move once or twice a year. I think another way to look at is "how many
spare sets of Carillo rods, Wiseco pistons, valves, custom pushrods,
etc. can you keep on your shelf"? The shop owner must multiple that by
the number of different engines/cars he works on. That's a lot of
inventory. The winner is the supplier that can get them the quickest,
even at a slightly higher price. Cross either line, which varies from
customer to customer, and the supplier loses. None of this excuses the
vendor who wants to earn or keep your business so badly that he is
willing to lie to you or promise you the moon. Those are the ones that
you stop using and find one that meets your expectations. "They are
the only ones that have that part" you say. A good way to head off
that problem is to order two of all your special parts so you'll have
them ready for the next blow-up. At least your only doing it for one
type engine.

  Sorry for the dissertation - Ed


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