Running a Shop is More Than Just Quality Parts

There is no question that the top finishing and coating shops have dialed in their processes to deliver the best product to their customers.

They own accreditations and certifications, and their team on the floor knows the ins and outs of how to finish parts.

What you often see is a well-trained staff that can run plating and anodizing lines with precision, and the percentage of rejects is minuscule. They deliver products on time, and their lead times are low compared to national averages.

Suffice it to say, these are the best shops in North America, and they demonstrate it every day, each week, and all year long.

But that doesn't necessarily mean they are the most profitable shops, and that is where the rub is. If you don't make a profit, then you won't be in business very long. That means what happens in the main office — where customer service is established, where bids are made on jobs, and where new business is drummed up to improve margins — is just as important as what happens on the shop floor.

I've heard many a story where shops had to close up or sell out because they just couldn't manage to be as profitable as they needed, especially with costs rising everywhere, from raw materials to supplies, to insurance costs. Prices always seem to go up, and rarely do they come back down.

In this issue of www.FinishingAndCoating.com for May 2023, we highlight a few businesses which have maintained high profits and improved margins and have a complete idea of what it costs to run a small or medium size business in today's economy.

You'll read how Saporito Finishing's Jeff Logan is a strong believer in the 80/20 principle of running a business, which means focusing heavily on 20% of Saporito's customers, which account for 80% of their overall revenue. Since following that business philosophy, Logan has seen dramatic changes in their plating operations and huge profits.

That's why at the end of 2022, Saporito Plating had just 364 customers and had a good year as far as revenue is concerned.

"We tied for our second biggest sales year ever," Logan says.

Mark Toni of Chicago's Belmont Plating Works is a firm believer that, when it comes to the finishing industry, what happens off the shop floor is just as important as what happens on it.

"The office in a business like ours is just as important as the shop is," says Toni, president of the family-owned company.

Tom Esposito moves his Espo's Powder Coating from Staten Island into more spacious facilities in Eatontown, New Jersey, and has improved his profits as well.

"It has been a huge change coming here, and the overhead has quadrupled," he says. "But we're doing more work. Still, it's a lot higher payroll, and bigger expense, obviously."

Running a finishing and coating shop is all about quality parts. But it is also about being able to open the doors tomorrow, the next day, and beyond. Hats off to those who run a great process line but also a great business office.