There's no way Michaels is doing 400 frames a week except in rare instances. I just talked to our people and we avarage around 200 frames a week with a staff of 9. We're not overworked but that's what it takes. In the two weeks before Christmass, we can do 300+ a week but we're getting close to overworked with a good bit of overtime. Our weekly sales are about what Michaels does 13 to 16K throughout the year.
The small guy can, and easily, compete with BB framers. I'm convinced or I would be liquidating my framing assests and I'm not even thinking about it. I can compete with 'em in quality, service, and, importantly, price. In these three areas, I know we have a large competitive advantage. And we're not nich framers; we're broad bassed. We sell everything from $3 a foot moulding to AbbMunn frames.
To compete, we have to stock moulding and buy in large quantities (we never, never order less than 2,000 and frequently in the 6 to 7000' range to keep freight costs down). We have at least 3,000 sheets of matboard in stock and an agreement with a supplier to service us twice a week. We buy glass in 2000lb cases at something like .32 sq ft. I know no Michaels can compete with un on the price of moulding, matboard, glass. WE have production equipment in our frame making dept: Cassesse joiners (3), Pistorius double miter saws (2), a Cassese double miter saw that can cut 6" wide moulding and we stock wide moulding. We've got 3 Oneida Air cyclone dust collectors and a big air scrubber to keep dust down during cutting. No Michaels shop can match that and the speed and flexibility it givs us. And the heck of it is, we don't have an onerous capital investment.
I mentioned in an earlier post that small guys have a worker advantage. Our main mat cutter (other than the Wizard which only cuts the complicated stuff) has been with us for 25 years. Our frame maker for 14. And they're both real good at their jobs. Only one employee has been with us less than a year and the next to her has been onboard for 8 years. No BB framer can come close to our crew.
We're in a small town in a low income area, south eastern North Carolina. We can only attract from north, west and south; there's nothing but Atlantic Ocean to the east of us. Until recently there was no Interstate highway into Wilmington.
There may be trouble for the small shops taking chop orders and existing on the mercy of LJ to get supplies to them on an as need basis but for serious small time framers like us, I can't see any threat. About 8 years ago representitives of Frame Warehouse came to Wilmington to scout out the area. They wanted to see our warehouse, cabinet, framemaking shop. I said, let 'em look all they want. They even checked out moulding prices looking at the backs of samples. They didn't open a store here.
There's no way a BB frame shop with distant management can compete with a motivated small shop, no way. Warren