Remote Location of Business affect on Sales Dollars

countryboy1966 · Jun 11, 2013

This question is for business owners out there which consider their shop location to be remote in the sense that no one will know of your business except through word of mouth and door to door marketing to attract customers. Requiring travel on your part to get material or shipping via fed ex/ups.

Do you feel it is a mistake to place your business in such a remote area?

Part of my business plan is to remain small, but not have to have my business placed in the center of an industrialized area.

Thanks!

JimGlass · Jun 11, 2013

Not at all unless your shop is a long distance from customers, like more than an hour away. My shop is remonte, located behind my house with no visible evidence anything is going on there. Been there for 14 years.
Jim

JB @ C and L Machine · Jun 11, 2013

No...we are in a small town in NJ and have customers all over the country and ship all over the world.

oldster · Jun 11, 2013

If you use the power of the internet, and work it effectively, you could be in East Bum Fu--, OO! Don't depend upon walk in traffic, or you are likely to starve. Use USPS, and the others for shipping. Look at some of the power houses that sell on ebay and always remember that they are probably 1-2 person shops. I have a good friend that sells antique Harley parts and complete bikes, and he looks like a 20 person shop (but he ain't).
Location is a state of mind.

Lee (the saw guy)

Ox · Jun 11, 2013

Requiring travel on your part to get material or shipping via fed ex/ups.

Please explain further this thought.
Doo you mean that you would actually hafta drive elsewhere to pick up your UPS?
I am guessing NOT as I don't think there are many places east of the Mississippi that would fall into this category?

My shop has been all but off the grid for decades.
Most folks have driven by everyday for yrs and not known we were back here.

UPS, Fed Ex, Service Center route drivers, LTL, and independent over the road steel haulers all seem to find us - even tho we have no sign out. Even a few salesmen find us too.

(I give directions via the phone tho)

Being in an industrial park does not equate being "close" to your customer - unless you only service others in that park. So .... ???

--------------

Think Snow Eh!
Ox

Bondo · Jun 11, 2013

JB @ C and L Machine said:
No...we are in a small town in NJ and have customers all over the country and ship all over the world.

That's a lie! Don't believe him! haha

You might be in a small town with a small square mileage, but I can guarantee that your county has close to 8x the population as us here in Salem County NJ. I live in a a bigger town, but with 3x the square mileage.

I live in what is called Farming County of NJ. Where the number of cows and horses equals the number of people. Our county has 1 Walmart, 3 Grocery stores, and a nuclear power plant.

I have a 24 hour industrial maintenance, welding, fabrication ect company and my normal travel time to a job is 30 minutes. The only time I hate it is when I go to the job and I forget an important item. I have work as far as middle of New York, Pennsylvania, and Maryland (2-5 hours one way).

You will get annoyed at going to quotes at customer locations, running around, and stuff like that, but I would never like to live in a populated area.

Cheaper taxes = gas prices... There is no real up or downside here.

kpotter · Jun 11, 2013

I thought long and hard about moving to a remote area and then I met several guys running shops out in the sticks. I have to get materials and parts all the time I dont want to spend the day driving all the way to town just to get a few bolts, I like being close to everything it makes life easy, my new shop is right in the middle of town I can get steel delivered I get my products picked up by the powdercoater and they will drop them off, I even get my nuts and bolts delivered along with my lunch. Running a business in the middle of nowhere sounds like a lot of extra work.

Ox · Jun 11, 2013

kpotter said:
I thought long and hard about moving to a remote area and then I met several guys running shops out in the sticks. I have to get materials and parts all the time I dont want to spend the day driving all the way to town just to get a few bolts, I like being close to everything it makes life easy, my new shop is right in the middle of town I can get steel delivered I get my products picked up by the powdercoater and they will drop them off, I even get my nuts and bolts delivered along with my lunch. Running a business in the middle of nowhere sounds like a lot of extra work.

Kudn't agree more!

Nothing to see out here in the sticks. Move along now .... Move along ....

---------------

Sweatin' to the Oldies!
Ox

ewlsey · Jun 11, 2013

As much as I hate them, there is a reason for cities.

I like being in town. If I was doing production or something with all known variables, I could be anywhere. Doing the mix of work I do, it's nice to be close to stuff.

Machine goes down on Friday afternoon, Motion Industries is 500 yards away. Need some fucked up bolt, stop by one of a half dozen suppliers. Need a flame cut? Grab in from the steel supplier 2 miles down the way. Drop it at heat treat on the way back. He'll send it over to the blanchard grinder across town. I can grab on on the way in.

Especially for guys just getting started, it can be helpful to be near other businesses. Shops need stuff. Other businesses can tell you where to look.

oldster · Jun 11, 2013

In my previous post, I extolled the value of being out in the sticks.
I should have clarified that a bit.
I build my own product, and am not at the mercy of the job shop problems. I don't have the mind set to do what you guys do! My hat is off to you that can walk into the shop, never knowing what is coming in next.

Lee (the saw guy)

Rodl · Jun 11, 2013

I actually live in a food desert in IA. Yes it is 10 miles, maybe 9.5 but I have to drive 15 minutes for a burger. I live off of a heavily traveled black top and nobody had a clue that I was here until I put in a 400amp 3phase line and a dust collector outside of the shop. The majority of my business is 50 to 1500 miles away. Still very few people know where I am. I am now a 1 to 3 man shop depending on the day. I have a better bolt cabinet than most because of the distance. I make my own product and do a little outsourced plasma work for people. There are times when I wish I lived in a more populated area but those needs are usually met when I knock off between noon and 3 on a Friday once or twice a month and make the hour drive to the nearest urban like area (where there is actually a Starbucks) in time for wine tasting or happy hour. I have learned to make really good coffee and my own wine, I have a freezer full of beef and my wife still makes all of our bread. We maintain an awesome garden. I can have work to all services I need with in 20 minutes. Steel and freight trucks still roll past every day and Fastenal and several others deliver daily if need be. I would not trade it.

JB @ C and L Machine · Jun 12, 2013

Bondo said:
That's a lie! Don't believe him! haha

You might be in a small town with a small square mileage, but I can guarantee that your county has close to 8x the population as us here in Salem County NJ. I live in a a bigger town, but with 3x the square mileage.

I live in what is called Farming County of NJ. Where the number of cows and horses equals the number of people. Our county has 1 Walmart, 3 Grocery stores, and a nuclear power plant.

I have a 24 hour industrial maintenance, welding, fabrication ect company and my normal travel time to a job is 30 minutes. The only time I hate it is when I go to the job and I forget an important item. I have work as far as middle of New York, Pennsylvania, and Maryland (2-5 hours one way).

You will get annoyed at going to quotes at customer locations, running around, and stuff like that, but I would never like to live in a populated area.

Cheaper taxes = gas prices... There is no real up or downside here.

Hey!!! We have 3 red lights...2 of which are county!

ponderingjunkman · Jun 12, 2013

I fall into this remote category as well. One customer prefers the anonymity of my location- definitely a secretive sort, but he has some interesting work. He likes the fact that his parts are not out in the public eye, so to speak. Too bad, I would love to show them off!

countryboy1966 · Jun 12, 2013

Thank you for the replies. I'm kind of fortunate with this remote location with this location in a few ways. My primary business revenue will be generated from my own products and these products primarily sell from word of mouth, internet, and phone sales. When running these products I know what I need for materials and will stock in location. I do my own anodizing which also is another business venture to consider. Places like MMC and Grainger are next day UPS delivery due to location. I wasn't clear about the UPS/FedEx. I was just making example meaning if for some reason I couldn't schedule pick up, I can drop off at their D.C.'s that are within a half hour IF needed. I also have a massive hardware store and machine tooling company within 2 miles of this location that will be able to help address tooling supply needs.

My concern comes in if I am caught up with my product lines and I have no other projects going, how easy would it be to find additional work to fill the gaps and if it is an absolute pain in the a$$ to make it happen from a remote location.

How many of you guys in these remote locations notified your local zoning of your ventures?

Ox · Jun 12, 2013

My township is "unzoned" so no worries.

But then I live by the philosophy that it is easier to beg forgiveness than to get permission for most things in this micromanaged world that we live in today.

Just put a horse or a few head of cattle out front and forget about it...

------------

Think Snow Eh!
Ox

countryboy1966 · Jun 12, 2013

Ox said:
My township is "unzoned" so no worries.

But then I live by the philosophy that it is easier to beg forgiveness than to get permission for most things in this micromanaged world that we live in today.

Just put a horse or a few head of cattle out front and forget about it...

------------

Think Snow Eh!
Ox

How did you know I planned to put cattle out front?

Bondo · Jun 12, 2013

JB @ C and L Machine said:
Hey!!! We have 3 red lights...2 of which are county!

Sweet!

I am also in the works of launching my own steel products for retail sale. It will be a secondary business compared to my maintenance company. The only thing I think in your case is you can't put off getting local work. Even if your product line is huge (for 1 man show), you will still have down time. IMO I would get 20 hours a week of local work at a steady rate, this will keep bills secured and allow play money and make that much more on your products. This 20 hours just keeps your name out and will start building your local reputation instead of having no work and needing it asap which customers always never go to you when you want them.

You can always get help, and more machinery, or even sub work out, but if no money is coming in, you are SOOL.

I'll go down to beans and franks, but I will never go back to ramen noodles!

303_Enfield · Jun 12, 2013

kpotter said:
I thought long and hard about moving to a remote area and then I met several guys running shops out in the sticks. I have to get materials and parts all the time I dont want to spend the day driving all the way to town just to get a few bolts, I like being close to everything it makes life easy, my new shop is right in the middle of town I can get steel delivered I get my products picked up by the powdercoater and they will drop them off, I even get my nuts and bolts delivered along with my lunch. Running a business in the middle of nowhere sounds like a lot of extra work.

I just have to ask: Who's dropping off sammiches along with ANSI fasteners? McMaster Carr is good....but not THAT good.

tyler34602 · Jun 12, 2013

we moved our shop over an hour away from our prior location. we really didnt know what to expect in terms of loosing some of our clients. we've been at our new location for about 6 months and we haven't had any problems. the building is down a little side road tucked away in the woods. its kinda nice because the only people that will know your back there are the ones that need to know and you dont get bothered by the daily walk ins that want 3 hours of work done for $20 for there $100 lawn mower.

kpotter · Jun 12, 2013

I have at least 20 places to eat lunch in within a mile of my shop. this is very important because my machinists work for food. I have a couple retired machinists who help me out and I buy them lunch everyday. I love being in the middle of town, I make my own products and used to be at home but it was hell compared to now. I live on an acre outside of town, it was about a 20 min drive to where ever I needed to go now it is less than 5 minutes.

Remote Location of Business affect on Sales Dollars

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