Thank you for your kind words!
Yes, I occasionally get questioned on my prices. But there are several things to consider - especially for those who have never owned or run a business. I'll use this thread for a moment - with the good graces of the moderators - to do a little education.
1) I have to purchase and carry inventory on a significant amount of materials, several hundred $$$ worth at any given time. This includes raw materials, labels, plastic bags, thermal compound, boxes, bubble wrap and newspaper, Arctic Silver products, etc. And multiple types of each item.
2) While I use USPS for boxes due to all my Priority Mail shipments, packaging still takes time, effort, and about 5 minutes to log in and print a label via the USPS website. I essentially do this at no charge while other companies charge a shipping and handling fee on top of the actual cost. My actual postage on most kits with glass is $3.85, I charge $4 mainly to keep the math simple and pricing neat. I have actually had a complaint before about that extra 15 cents. I also do about 10-15% of my business from overseas customers, which requires special packaging and customs forms to be filled out, which I do at no charge.
3) I have to do a lot of assembly and prep work myself - from recutting the sandpaper, to bagging and labeling, etc. The most tedious thing I do is polish the glass edges. No one ever notices this, but I hand polish every piece of glass on 8 edges so that no one slices their hand open on glass from one of my kits. I have worn out a couple of Dremel tools and diamond bits! In truth, I would like to dispense with glass all together but to my knowledge, none of my competitors offer it.
4) As a business owner, I am required to fill out tax forms separate from my family finances. Sales tax must be reported every month. I have to deal with some little crappy problem with my website or email, it seems like every month. All of this is just part of the overhead that you just have to do regardless.
5) I actually DO perform some research and testing. I occasionally try new products out and test different items. Also, I search for bargains that I can pass along as a "loss leader". For example, I recently offered some 1/2" clear tubing for watercoolers at $.15 per foot with any order.
6) I send out a LOT of kits and other stuff for free. Has anyone ever ordered a kit from me when they did not receive more value than they expected?
I have been fortunate enough to have received some positive website reviews, and continue to submit kits for testing. Additionally, I answer a LOT of lapping related questions every day via email. Even if someone hasn't bought a kit from me, I try to answer questions the best I can in trying to help out. Lotsa noobs out there that need a little honest guidance - but that's a good thing, we were all there once. I also give occasional "scholarships" to people who respond to posts and threads.
7) I am starting to have a steady (though not yet booming) OEM business - that is, I custom make and label a lot of kits for resale through some online shops and vendors. One of them does a lot of work on eBay; another is famous for the water cooling systems they offer; another is one of the largest online retailers in Europe; and there are plenty of others. While I make very little on kits for resale, it is steady and it provides volume discounts that help out for individual sales.
I figured it up one time - I end up making about $3 per hour on
all the work I do. Compared to my "real life" electrical project engineering job I do, this business is almost worthless. I will make more money in a couple of weekends of overtime this spring than I cleared all last year in profit selling lapping kits (and I sold a BUNCH).
However, it is the personal satisfaction I get that keeps me going. There are so many bad, lazy, and outright greedy sellers out there that I vowed to do it differently. That's why I am so grateful for all the positive feedback and kind words that are passed my way. All of you who have purchased from me in the past - I thank you for your business from the bottom of my heart. Perhaps we can do some more in the future.
For everyone else, don't hesitate to drop me a line - I will be glad to give advice and help in any way I can. Just let me know what I can do to help. Sorry about the long ...well, maybe not a rant... you know what I mean.
Regards,
Dave
[email protected]
