- Joined
- Apr 21, 2014
- Messages
- 1,008
I'm just curious to know what the business looks like behind the scenes / on paper.
We know the knives fly off the shelves. We know it's a small operation with a good deal of time going into the production of each unit, but this talk of almost going out of business is disconcerting....
How can a company whose products so rapidly sell out be anywhere close to failing??
Obviously production is an issue... Is this mostly do to the low number of employees, or the fact that a lot of it depends on 3rd parties...?
Hopefully the new shop in ID gives you guys plenty of room to grow, expand and maybe bring some of those 3rd party duties in-house, which I assume would result in a shorter turn-around.
For our first big year (2013) we had some big mistakes. As Guy has mentioned in the past, he made a bad choice in a business management partner. Instead of reinvesting in the production of knives, money went toward ineffective employees and unnecessary marketing ploys. For example: we hired a company to do frivolous social media posts (they once used a graphic about knives and didn't even bother to change the picture to one of our knives). By the end of 2013 the partner was gone but we were still recovering when we starting getting hit with some Factory 2nds. Worst case was 3/4s of a production run. We weren't seeing the blades early enough in the production process to be able to make the fix/scrap decision. Even if we did, we didn't have the equipment to do any of the fixing ourselves. Some people will say we are too particular, but a lot of the things we look out for are things that have been pointed out to us by unsatisfied customers. This would also be where some of the stubbornness comes in. Guy would rather go down in a noble flame than sell something that is less than perfect. I had a difficult time convincing him to sell Factory 2nds.
We have learned. We have cut back as much as we can. We have plans in place for getting some much needed equipment. We have a pretty good idea of how to keep production as efficient as possible. We are recovering and looking forward to an exciting future.