by Rudy Scott Nelson
Like storefronts, there are actually several different variants to the Painting Service option. There is the Home based Service which is operated much like an internet or ebay operation. There is the ‘Contract Service’ that works for individuals or a regular store owner. There is the group of painters who form a ‘Consortium’. There are those painters who will specialize in a particular product. This may be Fantasy, Historical, Sci-Fi, vehicles or terrain. In many cases the options are further divided by how the painter gets his products. Some painters will pay retail and others will be able to get them wholesale. In some cases the client will provide the castings to be painted. With the graying of the hobby, I never go to a show where I am asked what do I have painted to sell. From a business end you are getting paid for your labor which is not always the case in a product based operation. Even in non-hobby businesses Service operations have a higher profit level than product based ones. In product based operations you have to restock what you sell, In painting service based operations you can let the need to restock slide based on orders and need. In general Overhead is less than a brick and mortar location. Though going to frequent shows (I go to 20+ per year) can get very costly in table fees, gas and hotels. While the selection of a store site is critical for a brick and mortar’ establishment, a painter’s reputation will make or break a painting service. The reputation can be easily tarnished by poor painting, weak customer service or bad shipping policies. Once the reputation has become poor, it is almost impossible to regain it. Among many potential clients, there will always be a shadow of doubt resulting in a more intense scrutiny of the painters practice and skills. B1. If you are a good painter, then that business will come naturally but client patronage may be irregular at best. A Home based Painting Service is one of those ‘quick’ entry business where all of the costs are not considered before you start it. Overhead costs will vary. In most cases they are conducted as a part time business. In Home based services, overhead needs to include the cost of establishing an internet site. One area that can be expensive over a long duration is the operational costs. Such costs includes stocking the product to be enhanced, paints, glue, finishing products (stain, wash, sealant) , flocking, bases, painting aids (magnifying glasses, etc.) and brushes. The costs associated with shipping are increased with the need to buy more expensive packaging material to ensure safe delivery to the client. B2. The Contract painter does not advertise on an established site. Their work is of a fine enough quality to have gamers trying to get them painter to work on one of their projects. These types of painters rely mainly on word of mouth recommendations and reputation. In many cases they will have the advantage of the client providing the castings to be painted and in some cases the books that are needed as the painting guides as well. I regard this as one of the high profit options since the painter will have little money invested in unpainted products or expensive painting guides. A variant of this option is the painter who will work for a local store. The store will provide the necessary material and buy the finished product. I do not regard painters who give enhanced products to stores to sell on consignment as a Contract painter. They would be the normal Painting Service (B1) who is using the store consignment as a method to advertise their ability and product. For a painter to reach the Contract status is not an overnight endeavor. It requires many years of quality work to be produced. B3. The Consortium company will tend to have a strong beginning. Their ability to produce enhanced products in mass is a key advantage. The danger occurs after an extended period when one party or another feels that they are doing too much of the work for their percentage. Such groups tend to dissolve after a period of time and often with hostile feeling among the ex-partners. The Consortium must be established under strict guidelines. The guidelines should include the assigned tasks of the members, how the product is to be obtained, the price level, how the product will be sold, the existence of any discounts, how to cover expenses and how to divide up profits. One advantage to such a group is that not everyone needs to be a good painter. There are other tasks that need to be done including preparing the castings, priming the castings, finishing the castings, basing the castings and selling the product. If the Consortium is not set up correctly, then problems may develop early. Some members may not understand the costs involved in obtaining stock, enhancing the product and selling the product. This is especially true in the area of going to shows where table costs, gas, motel bills all have to be paid for with gross sales. Even listing on ebay or other sites will incur expenses which have to come from gross sales. As a result their percentage of the PROFIT will be less than they imagined. One aspect which can present a problem is when a client will ask for a discount on a large purchase. Unless a discount policy is laid out, the person responsible for selling the items may lose a sale by being hesitant to lose the money involved in the discount. B4. Specialization by some painters in certain areas has advantages and disadvantages. Painters are more willing to paint castings from areas that they have an interest. If they are painting in an area of weak interest, then the project may take longer than expected. Painters will also make a better effort and naturally paint better in areas that they have an interest. Some painters will spend the same amount of time on a larger casting as the smaller version. However, the time to dollar ratio is normally higher for the larger casting, so they will focus on painting castings of the larger scale. Specialization will limit the painter’s target population. Do You Really Want to Get Into The Hobby Business?
Running a Store Painting Service Ebay Store Game and Figure Design Running a Hobby-related Webpage Something I Haven’t Mentioned Running a Distributorship Becoming a Producer (Manufacturer) Back to Time Portal Passages Spring 2004 Table of Contents Back to Time Portal Passages List of Issues Back to MagWeb Master Magazine List © Copyright 2004 by Rudy Scott Nelson This article appears in MagWeb (Magazine Web) on the Internet World Wide Web. Other articles from military history and related magazines are available at http://www.magweb.com |