How to Handle the Demands of Multiple Builders
Learn how defining processes, managing capacity and communicating can protect margins while managing builder expectations
An important tip to keep in mind when running a fabrication shop is not to schedule to capacity and keep an open line of communication with your customers.
Need to Know
- It is essential for fabrication shops to create a defined process and make sure that their customers understand it.
- Fabricators should not book themselves at 100%-capacity. Scheduling software can provide visibility into lead times.
- Communication with builders will help fabricators to manage expectations and maintain order.
During a Fabricator Forum held earlier this year during The International Surface Event (tise), one fabricator raised a question about how to deal with the demands of multiple builders at one time. “I run a small shop in Alaska,” he said. “We deal with extreme seasonality. Sometimes it feels like the boat shows up and suddenly everyone’s cabinets are ready at the same time. Builders all call at once. It gets overwhelming. It does not matter how much machinery or how many crews you have; it is impossible to install everything at once. How do you handle multiple builders who all demand priority? You cannot lose them, but you cannot physically do everything.”
Industry veteran Geoffrey Gran of The Countertop Factory Midwest in Addison, IL, asked the fabricator, what is the daily capacity of his shop? “Let’s say it is 200 square feet per day,” he said. “You should never schedule 200 square feet per day. Plan for 80% of capacity. That leaves room for Murphy’s Law.”
Creating a Process
Gran went on to say that it is essential to create a defined process, such as:
- 48 hours to measure
- six days to fabricate
- Install timeline clearly defined
“[If you left 20% unscheduled,] you can go to builders who want priority and say, ‘I can move you up, but there is an expedited fee.’ If it is really that important to them, they are going to pay for it.”
“Once customers understand the process, it becomes first in, first out,” he said. “But remember, you left 20% unscheduled. You can go to builders who want priority and say, ‘I can move you up, but there is an expedited fee.’ If it is really that important to them, they are going to pay for it. We generated $89,000 last year in expedited delivery fees. You know what it cost us? Zero. That dropped straight to the bottom line. If you are a 10%-net-income company, you would need $900,000 in countertop sales to produce that same profit. Do not schedule at 100%.”
The industry veteran also suggested to use scheduling software. “If you are not using it, you should consider it,” he said. “You need visibility into capacity ‘at a glance.’ Guessing leads turns into chaos.”
Maintaining Communication and Order
Tim Zeng of Zeng Countertops & Surfaces in Lincoln, NE, stressed another key point is communication. “Some builders treat you better than others,” he said. “Track that. Evaluate that. You may need to ‘fire’ a builder if the relationship is not profitable. If they push unreasonable demands, they will do that to the next fabricator too. You are not losing a great situation – you are letting go of a bad one.
“We think communication and relationships with every customer is essential,” Zeng went on to say. “We let them know how we operate. They need to follow our system. That is the only way we can keep our sanity, our schedule and dollars flowing through the shop.”
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