How do you manage material costs and shop overhead in a physical manufacturing business?

John Malecki
Replied byJohn Malecki

Founder & CEO at John Malecki Media

Niche: Production
Revenue: $108K/mo
Location: Pittsburgh, Pennsylvania, USA
Started: 2016

Lumber and hardware pricing fluctuate unpredictably, so we establish wholesale accounts with regional sawmills and purchase bulk inventory in advance. We track scrap lumber meticulously, repurposing high-grade cutoffs into smaller branded home goods or shop accessories. Minimizing physical waste directly protects our operating margins. Furthermore, diversifying our revenue into digital products protects cash flow when physical furniture deliveries experience seasonal lulls.

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