FREQUENTLY ASKED QUESTIONS ABOUT CONCRETE
STONE AND TILE MANUFACTURING FINANCES
WHAT GROWTH RATE CAN I EXPECT FROM MY BUSINESS?
Although the growth rate is directly proportional to the capital available for growth, and the effort put forth, a mid-sized production facility calls for zero to $150,000 in sales the first full year, 150,000-$300,000 by year three, and up to $400,000 after that, with a smaller, flatter growth curve in later years. With a materials cost of about 10%, the profit potential is quite evident.
YOU'VE SAID ELSEWHERE THAT I CAN START MAKING MONEY FROM DAY ONE... HOW?
You will learn in the Marketing Manual how to sell your stone and tile before you start making it. It is standard in the industry to get a 25%-50% deposit from customers ordering tile and stone. That deposit will pay for the supplies to make the stone or tile ordered... with profit left over for you. Remember... once you are set up, materials costs only run around ten-percent or less of product selling price.
HOW MUCH SHOULD I CHARGE FOR MY STONE AND TILE?
This is a difficult question to answer without knowledge of your market. One of the items in your Startup Kit is a Marketing Questionnaire. You will need to go to stores and enter the selling prices of stone and tile in those stores. Once complete, an analysis can be done of your market. Generally, Olde World Stone and Tile sells for no less than $3.00 per square foot. Most Producers sell at $3.00-$7.00 a sq. ft. As you can see, this is a nice return on an investment of about $0.30 per square foot in raw material.
HOW MUCH MONEY CAN I EXPECT TO MAKE WITH THIS BUSINESS?
Rather than offer the obvious answer of "effort put in equals dollars available to take out", let me offer this... Our average cost for labor, materials and overhead of a 3,000 square foot building came to about $0.65 per square foot of tile produced. Our suggested wholesale price per sq. ft. of tile was $1.89-$2.29 depending on the color, style, etc. Add $1.00-$3.00 per sq. ft. for stone, depending on the market. Our suggested retail prices for tile were $2.89-$3.29 per sq. ft., again add $1.00-$3.00 for stone. These prices were on the low side due to Florida being possibly the most competitive market for tile in the country. Nationally, the average retail prices for our tile are $3.99-$6.99 per sq. ft., with stone being at the higher end. A market and price analysis should be done on each territory.
HOW IS AN OLDE WORLD STONE & TILE MANUFACTURING FACILITY LIKE A RETIREMENT FUND?
The day will no doubt come when you are ready to retire. Wouldn't you like to know... for sure, that a retirement will be possible? That you will be in a position to sell your manufacturing business for large multiples of what you've invested in it? Every penny invested now... will pay you major dividends later. With your own successful business, there are no worries about your corporate retirement fund being absconded with by the management, or if there will be money coming in from your Social Security. You will know that you have a viable and marketable business to either sell, or pass on to a family member.
Not ready to start a full-time business? Want to try making something on a smaller scale? Shop for one of our Complete Do-It-Yourself Project Kits!
AVAILABLE IN OUR ON-LINE STORES BELOW!
