Cage manufacturing and lead time. Is there a better way?

[Prognathodon]

I have a long reply, but I'm going to go drop it in the general business talk section, as it wandered off the sealant dry time topic.


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[Prognathodon]

Although my thoughts below are about a suggestion fot Animal Plastics, they really apply to anybody building enclosures, or hides, or even breeding.

In another thread, another member said this about Animal Plastics' turnaround time and methods:

In all honesty they have a bad business plan. They really should have standard cage sizes on hand to ship. There isn't any reason to have such a long lead time on a non customized enclosure. A little inventory management would boost their sales.

I expect its because very few people buy a "stock" cage - just for a T8, options for sliding door cage locks, basking shelf, and circle screens all change the machining, and probably so do the heat and light options. Machining the pieces for the necessary options is more efficient than going back and add making changes after the parts are produced. Even if you're doing it all with hand tools. It really messes up your work flow.

Also, I'd bet dollars to doughnuts they don't keep an inventory of finished enclosures, except for those produced since the last shipment sent or the balance of a multi-unit order. Maintaining inventory costs time, money, and effort. You need *organized* storage space, a tracking system, and more material-handling.

Hiring more people to do the jobs and renting more space is not always an answer. With more employees and facilities, more oversight is required, which has a very large and real risk of taking that attention from quality control and customer service.

Buying more CNC machines to increase production has the same issues - CNC operation is a skill, and new operators would have to be trained on AP's products/processes at very least, and would require supervision. Plus space requirements, and possibly more support staff - materials handlers feeding machines, packing orders, etc. More time lost to supervision.

Quality, customer service, and fast turnaround - pick two. With AP we get the quality and customer service, and the price is that we have to wait our turn on the CNC machine. You can't always just throw money at a "problem" to "fix" it!

No, I'm not in the enclosure business, but I have a business of my own making and selling things, and have considered the expansion options - details (materials, tools) change, but the broad outlines of the issues remain the same.


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[KMG]

Exactly!

[Reinz]

In all honesty they have a bad business plan. They really should have standard cage sizes on hand to ship. There isn't any reason to have such a long lead time on a non customized enclosure. A little inventory management would boost their sales.

No, actually they have great business plan! They sell EVERYTHING they make, and production is sold out 2-3 months in advance. No inventory costs and no stress about moving inventory.

This means no inventory storage, no yearly taxes that they have to pay on inventory, just taxes on raw materials.

The only way shorten the delivery lag time is to produce more. To do that, they would have to work in either an extra shift or two. Heck, they may be doing that sometimes already. Or, they may need to buy more machines. The one(s) they have can only produce so many units a day. How much is machinery, $5k?, $20k?, $100k?

Along with that machine means more employees, a new or more, bigger building(s). This takes capital, capital cost money (interest). If they hire a certain number(50?) of employees they have to provide medical benefits which are astronomical.

Now, they deal in raw materials with waste. Not a lot, but some, such as the big window holes for the doors. Sure, they use those pieces for shelf brackets, but there is still waste. New employees will have a learning curve which means mistakes and even more waste.

More employees mean more problems too, they are not always the cure, they are constant headaches. What if a key person is injured in a wreck on the way to work? Production may be slowed down. What if a key woman goes on maternity leave? They quit without notice? What if, what if? It's limitless.

I'm just touching the tip of the iceberg.

So, with all of the new expenses to placate customers and keep them from whining they may have to increase prices 25-40% and no more special discounted priced cages (sale items) just to cover the new expenses.

What will these higher prices do?

They will decrease demand. Folks will go elsewhere to buy cages for less money. Now they have to lay off some folks. They still have to pay for the machines, the building leases. Their inventory will increase, which will increase their taxes. How long can they continue to pay these now extra non needed expenses before going out of business?

The above examples are just a sampling of what comprises the curse of the Mom and Pop, small business owner. Running a successful small business is a delicate balance which requires perfect timing and risk for expansion.

Trust me, they are tired of answering countless phone calls and emails about "where is my cage?" That costs them precious time and money. If they could streamline things better, they have done so or are working on it. Manufacturing is not as easy as it appears.

I don't think that I mind waiting for a well priced high quality cage. The alternative may not be to my advantage after all.

[Reinz]

It can be done more efficiently.

Probably

But not enough to give you the instant gratification you desire at the same price.

[KMG]

Probably

But not enough to give you the instant gratification you desire at the same price.

The typical American "I want it now" attitude.

What's that saying?

Good things come to those that.........

[Bmocken]

Probably

But not enough to give you the instant gratification you desire at the same price.

I'm nkt looking for instant gratification just for them to be a bit more upfront as to how long it actually takes. Like I said several times now, it's a good enclosure. Just wish as a consumer I was a little more informed by them as to how long this actually took.

[Bmocken]

No, actually they have great business plan! They sell EVERYTHING they make, and production is sold out 2-3 months in advance. No inventory costs and no stress about moving inventory.

This means no inventory storage, no yearly taxes that they have to pay on inventory, just taxes on raw materials.

The only way shorten the delivery lag time is to produce more. To do that, they would have to work in either an extra shift or two. Heck, they may be doing that sometimes already. Or, they may need to buy more machines. The one(s) they have can only produce so many units a day. How much is machinery, $5k?, $20k?, $100k?

Along with that machine means more employees, a new or more, bigger building(s). This takes capital, capital cost money (interest). If they hire a certain number(50?) of employees they have to provide medical benefits which are astronomical.

Now, they deal in raw materials with waste. Not a lot, but some, such as the big window holes for the doors. Sure, they use those pieces for shelf brackets, but there is still waste. New employees will have a learning curve which means mistakes and even more waste.

More employees mean more problems too, they are not always the cure, they are constant headaches. What if a key person is injured in a wreck on the way to work? Production may be slowed down. What if a key woman goes on maternity leave? They quit without notice? What if, what if? It's limitless.

I'm just touching the tip of the iceberg.

So, with all of the new expenses to placate customers and keep them from whining they may have to increase prices 25-40% and no more special discounted priced cages (sale items) just to cover the new expenses.

What will these higher prices do?

They will decrease demand. Folks will go elsewhere to buy cages for less money. Now they have to lay off some folks. They still have to pay for the machines, the building leases. Their inventory will increase, which will increase their taxes. How long can they continue to pay these now extra non needed expenses before going out of business?

The above examples are just a sampling of what comprises the curse of the Mom and Pop, small business owner. Running a successful small business is a delicate balance which requires perfect timing and risk for expansion.

Trust me, they are tired of answering countless phone calls and emails about "where is my cage?" That costs them precious time and money. If they could streamline things better, they have done so or are working on it. Manufacturing is not as easy as it appears.

I don't think that I mind waiting for a well priced high quality cage. The alternative may not be to my advantage after all.

Thats not exactly how supply side economics or opportunities of scale work. Ever notice how the more of something is made the cheaper it is? Either way they have a great product. Hopefully they continue to grow.

[Bmocken]

It sure can.....for a price. You want to pay it?

You are going to be hard pressed to find another builder at their price point that offers such a high quality product both in design and materials.

They have excellent customer service and are highly thought of in the hobby, for good reason.

I never questioned their reputation or service.

[KMG]

I'm nkt looking for instant gratification just for them to be a bit more upfront as to how long it actually takes. Like I said several times now, it's a good enclosure. Just wish as a consumer I was a little more informed by them as to how long this actually took.

If you ever have a question give them a call. I have a few times and they were nothing but pleasant and helpful.

The last cage I ordered I added some custom touches. They contacted me to make sure I was getting just what I wanted and delivered just what was discussed. They quickly got the order changed in the system and they even saved me money in the process. Now that's service!