Leftover Flake = Lost Profit
I was gifted a pallet of leftover flake for our training program. The story behind the flake is well worth hearing if you're an epoxy flooring business and you want to learn where you might be losing profit yourself.
There's a gentleman who's been in the industry for over 40 years. I did a bit of work with him, and at the end of the day, he was looking to retire.
And I often have the conversation with installers about their leftover stock or the excess stock that come into play. And behind me here, I wanted to show you this is a pallet that he donated for training purposes.
But what it is, it's a pallet of leftover flake, and there's about 200kg in there. At the very cheapest, that's $10 per kg. It's $2,000 of material sitting there.
What I keep saying to installers is, 'this is your profit'.
This is what you've already paid for. And you might say, "yes, the job has paid for it" and so forth, but anything that is left over like that, that you're not going to use, is profit lost.
The way to combat that with regard to flake is instead of supplying samples for a myriad of different combinations. Flake suppliers will give you 50, 60 different combinations of flake and more so now I've heard one supplier offering 150 different combinations. The problem with that is you end up with leftover flake on every job.
Now, if you limit the options that you give your client, say you only show them 8 combinations, then anything left over gets used on the next project. And if you maintain that sort of mentality, not only do you become a master at those flake combinations, but you carry less stock to start with.
You're not waiting for projects because typically you're prepared to carry more yourself, and you don't have the leftover $2,000 worth of
profit that just is going to be in your shed until the day you retire.
So I'm Resin Jack. I wanted to share the story because I think it applies to everyone that works in the resin flooring game and in particular those that work with flake systems. As always, take care and keep smiling.
Can you relate to sitting with boxes or leftover flake that you are not likely to ever use again?
Let me know your thoughts and experience on this below.
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