Cottage Vendors- How Long is Too Long

[KiwiMark]

It isn't as simple as just employing another person once the lead times exceed 6 weeks (for example). It could be that employing someone would cost enough that they couldn't maintain the current pricing and putting the price up might dampen the demand enough that there wouldn't be the work available for that employee. It could also be that the lead times sometimes stretch out to 8 weeks but are often only a week or two - not worth the cost of an employee if you are only sometimes a bit too busy.

Maybe if the lead times are long and keep getting worse then they should take on more staff, but it is often not that simple.

[Ilovebeer]

The cottage vendors choose the business model that suits them best. It really is a matter of whether you want instant gratification (i.e., Amazon) or if you want a custom product manufactured just for you, and whether you're willing to wait for that product.

If you're not willing to wait, then order an inferior product from Amazon.

I was trying hard to avoid these types of responses! My intention was to have an open discussion on the state of cottage vendors, and with heavy demand for their products wondering why we see little expansion and investment to fill that void. Papa Smurf gave a very good explanation of the way things work at dream hammock (in fact I will be ordering a hammock from Dream before spring). I think one thing we cannot lose sight of is the customer. No matter how you spin it, having a customer pay for a product sometimes months before it is delivered is an inconvenience to the customer. I feel that way too many people here continently disregard this fact.

[TrailSlug]

. No matter how you spin it, having a customer pay for a product sometimes months before it is delivered is an inconvenience to the customer. I feel that way too many people here continently disregard this fact.

Trust me no one is making anyone do this against their will. If you do not want to pay and wait then move on or continue to try to convince these hard working cottage vendors that they are doing it all wrong.

[Campdavid]

Trust me no one is making anyone do this against their will. If you do not want to pay and wait then move on or continue to try to convince these hard working cottage vendors that they are doing it all wrong.

Well said.

[Ilovebeer]

Trust me no one is making anyone do this against their will. If you do not want to pay and wait then move on or continue to try to convince these hard working cottage vendors that they are doing it all wrong.

That is not the point of this thread either, it is my hope to openly discuss this growing industry and what businesses are doing to accommodate increased demand (other than extending lead times). I think everyone else that has replied to this thread has gotten its intent.... I am not sure why you are being critical.

[KBr00ks]

Another factor you have not considered, Ilovebeer -- the graph of what "ramping up production" looks like is hardly ever a smooth, straight line. It's more like a set of stairs. Companies reach capacity, then need a large influx of some resource -- capital, equipment, employees, whatever -- to make the jump to the next level. A small business like Dream Hammock or Dutch is most likely doing the most they can with what they've got, and increasing production would take a big boost of resources. For many small businesses, that means taking on investors... and for quite a few small business owners I know, that's when things go awry, and they either leave in dissatisfaction (if not disgust) over what has become of their original vision, or they get forced out of their own company.

[KBr00ks]

Or, as the saying goes: 1. Good 2. Fast 3. Cheap -- pick two.

[WalksIn2Trees]

In the vein of "ramping up" let's just talk about what that exactly means:

Ok... Look again at Papa Smurfs 360 image.
How many sewing machines do you see?
How many workstations do you see?
How does adding just one more person change the needs of what you see there?

They have that space there to work in. Another employee doesn't mean JUST another employee. It means another workstation, another sewing machine, doesn't look like there any "spare" space so that means more square footage... A new location that costs more...see?

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[Ilovebeer]

Another factor you have not considered, Ilovebeer -- the graph of what "ramping up production" looks like is hardly ever a smooth, straight line. It's more like a set of stairs. Companies reach capacity, then need a large influx of some resource -- capital, equipment, employees, whatever -- to make the jump to the next level. A small business like Dream Hammock or Dutch is most likely doing the most they can with what they've got, and increasing production would take a big boost of resources. For many small businesses, that means taking on investors... and for quite a few small business owners I know, that's when things go awry, and they either leave in dissatisfaction (if not disgust) over what has become of their original vision, or they get forced out of their own company.

I totally understand and get this but, every indication I see says that this a growing industry. Most business want their piece of the pie to grow. Sure you can have a great product, with unique features, but if you can't make them fast enough then it opens the door to someone else that can. It is not an knock on this industry, because it happens in all industries.

[Ilovebeer]

Or, as the saying goes: 1. Good 2. Fast 3. Cheap -- pick two.

The problem I have been seeing is that I can usually only pick one of these.