Modelhaus going, going Gone !!!!!!

[Mark]

The quandary of the resin world is that it's much easier to receive orders than it is to cast things to fill them!

And, for some, it's much easier to cash checks than it is to cast things to fill orders!

[Tom Geiger]

And, for some, it's much easier to cash checks than it is to cast things to fill orders!

My view of the world is that most resin casters got into the business with every intent of doing good for the hobby.  There are several pitfalls here that lead to their failure.

Ever watch those restaurant rescue shows? The owners are usually besides themselves that they are losing money.  "We're busy all the time with lots of people in here, we work 80 hours a week, but at the end of the month we're in the red."  The savior chef finds that the owner doesn't have the skills of costing out the meals and running budgets. That $6.50 sandwich platter actually costs $8.50 to make. There was one show where the restaurant owners killed themselves to fill a $500 catering order, only to be told they lost $50 on that order.  That describes people in this business.  

Most started out wanting to make a few parts for themselves.  Then friends and club mates wanted parts too.  Word spread and orders come in from strangers.  I've known guys to get overwhelmed without ever advertising their products.  Many of them haven't costed out their products and are selling them for less than the cost of materials, never mind making a profit for their labor.   So they've cashed all the checks and didn't have enough money to deliver the products.

They've never added up the time it takes to produce products. And they are slowed down by the number of molds they own, curing time, pressure pot capacity and time. One guy I know started out for fun to give guys some neat stuff at his cost of materials.  Without advertising suddenly people he didn't even know were placing enormous orders, some for 10 or more each of his products. Well, his production capacity was 8 units a night... on the nights he was available.  He quickly fell behind.  The buyers have no mercy. Five days after mailing in a money order, they're screaming for their product.  They have no clue of the casting process or time involved and treat him like they bought something at Walmart.

Remember that this is a business where each and every piece is made by hand. It's not like I drew a decal sheet and had a commercial printer deliver 2000 copies that I can mail out with little effort. 

These guys get overwhelmed and pretty much give up. Once the orders and the flack seems insurmountable, they don't even try to catch up.  And that's the failure point.

 

 

[Mark]

People undervalue their time...in my opinion, the root cause of a lot of guys getting into casting (or anything else, for that matter) as a business, and then falling behind.  Been there, done that, except I stopped before falling behind.  I didn't want to get to a point where I'd stop setting up at (or going to) shows, in order to avoid people.

[Ace-Garageguy]

My view of the world is that most resin casters got into the business with every intent of doing good...There are several pitfalls here that lead to their failure...Many of them haven't costed out their products and are selling them for less than the cost of materials, never mind making a profit for their labor....So they've cashed all the checks and didn't have enough money to deliver the products.

They've never added up the time it takes to produce products....Remember that this is a business where each and every piece is made by hand....

These guys get overwhelmed and pretty much give up. Once the orders and the flack seems insurmountable, they don't even try to catch up.  And that's the failure point.

This, in a nutshell, is what happens to a large number of businesses that start out with good intentions. I've been guilty of making these same mistakes, so I know from first hand experience this is exactly what happens...in the aftermarket 1:1 fiberglass parts business (and others) just as surely as it does in scale.

Many business startups also seem to think that if they price themselves too high, they won't get any orders. The truth is that if the quality is there from the beginning, the money will come...and come and come and come. But price yourself too low, all you get is a reputation for being cheap...not among the best...simply because you can't afford to keep doing it at a loss. People shopping price only will whine about fair pricing being too high ( pricing that's fair to the people making the stuff), but people shopping quality will always come back for more if you can deliver consistently.

In my own business ventures, once I finally learned to look hard at what it actually cost to do things, and to insist on a fair return for my own time (and for anyone helping me as well), I haven't got rich, but I've been able to keep going with no hesitation about answering my phone or reading my emails. My clients are all reasonably happy and my own bills get paid on time.

What a concept.

[Greg Wann]

When I spoke to Don he mentioned buying drum sets of resin.  I only wish I had asked how big are the drums and how often do you purchase them.  A drum containing part A and a drum containing part B.  I am still only buying gallon kits.  That makes two gallons of resin.  It will make lots of parts.  A gallon kit is about a hundred bucks.  There is a good profit margin.  Now if I just had a bigger room to work in and more help and more initiative on my part.

Edited July 13, 2016 by Greg Wann

[Lownslow]

When I spoke to Don he mentioned buying drum sets of resin.  I only wish I had asked how big are the drums and how often do you purchase them.  A drum containing part A and a drum containing part B.  I am still only buying gallon kits.  That makes two gallons of resin.  It will make lots of parts.

55 gallon drums

 

[Greg Wann]

I could only wonder how long it takes for them to go through 110 gallons of resin?

[High octane]

The only things I REALLY needed I didn't get in in time. I've had a couple of period truck builds hanging fire for several years waiting for me to get around to ordering some sets of their "medium duty" truck tires and wheels. They're the only thing I've ever seen on the market that have the exact look I want. 

Oh well.  

They do look great as I may have a set somewhere in my stash also.

[Dan Rosenello]

I’m reading this over 2 years after the last comment. I don’t remember that whole Mustang episode on the other board. But that was right when I first found the board and I’m sure I missed a lot.

 The reason why I’m reading this is I just found not one but two(!) old 1/24 resin Mustang coupes on eBay. One is a built up(rough) Highway Patrol car. The other is unbuilt. I’m curious who made the bodies originally. The seller claimed the built one is Modehaus but I’m pretty sure they never made one.

 Ok ! Go back to whatever I interrupted with the notice that I’d joined your conversation two years late ! 

[av405]

Can you provide a link to the ebay listings?

[Life in the Fair Lane]

On ‎3‎/‎15‎/‎2016 at 7:43 PM, High octane said:

Sounds like "a lot of work." It would be a big undertaking and would probably take awhile to get  the business going "full steam," especially if Don & Carol aren't willing to train anyone either.

If it's going to be sold as is, with no instruction, it's going to be a tough sell.  The only likely buyer would be another baby boomer - or someone around 70+ years of age.  Most of those folks have retired, died, dying, moving or quitting the hobby.  Most gen-Xr's or millennials have no interest in anything older than a 1990 Subaru pickup.

[Life in the Fair Lane]

On ‎3‎/‎15‎/‎2016 at 4:54 PM, WoodyRDC said:

Whats going to happen to all the promo rebuilding when they go out ??  I am not sure weather to by any more if you can't get parts any longer. 

The price of junk promos has slid into the basement.  Robert Shibelski still does excellent chrome work and I've been pleased with his service and quality for years.  Beyond that, it's back to salvaging greeting card boxes for glass, modern kits for roof pillars, w/s frames, tires, etc.  As for hood and fender ornaments, wheel covers, and unique odds & ends, you're own your own!

[High octane]

I just saw Robert the other day at a swap meet/contest and he is no longer doing chrome plating. And as far as someone taking over the Modelhaus business, I see it only as a dream as in my book it ain't never gonna happen. Don & Carol were and are special people and put their hearts into the business and built it from the ground up.