Post by deb193redux on Mar 28, 2014 13:41:04 GMT -5
does not seem like a good business model. at the usual 50/50 split on slabbing, you end up with potentially as much competing material out there as you are putting on the market.
amateur cutters who are not going to sell their share, are only likely to cut up less than a hundred pounds or so. if they did cut more, they would likely also want to sell some. ... and the guy is meanwhile shipping back and forth to lots of people.
it would be logistically easier to work with a few cutters who could take delivery of a 600lb barrel or two - but they will want to sell their half.
a good business model would protect the market value of the rock. finding a large-scale cutter willing to take delivery of a barrel of type A and a barrel of type B, where A gets sent back to you and B is kept. that could work because even with both guys trying to sell, they are not in direct competition.
anyway, sounds like a good deal for anyone that wants to work for rock, but I think the guy might snap to a better business model. (LOL. I would consult for rock.)
I kinda agree, but I'm not talking about cutting a mere couple hundred pounds. I'll cut a couple thousand, but not for splits. I'd have to pay for a storage locker, electricity, wear and tear on the blades and equipment, then there's my time..... But not for rock that may or may not sell. I prefer a return more immediate that I can use, not sell a couple dollars at a time. And even if I split for the industry standard of 50/50, all he'd be doing is creating competition when I sold my half to dealers, internet, etc. Much better to pay some $$ and keep some exclusivity when you're dealing with 20K pounds I'd think...
Yes Phil, these good points along the lines I was thinking. The advantage of barter is it is cash-flow friendly. The disadvantage in this context, is that it dilutes the market and/or takes too much administration
Either a contractor who does most of the work for pay, with perhaps some discount for keeping a small amount of slabs - or employees. With this kind of volume, getting a business loan and buying a few says, and hiring a guy or two, might make the mist sense. IMO, a lot depends on the quality of the rough.