Powder Coating Question

[twicechosen]

I have a friend who just told me that someone was getting out of the powder coating business and wanted to sell his business, ovens, and supplies for about 3grand. He asked if I thought it would be profitable, like I would know, if he did bike parts. He explained the process, the coating and then the oven bake. His thinking was that for wheels, etc. that he could do smaller orders, quicker and less expensively due to volume and smaller items.

Here's my questions for you:
1. What is your opinion about it as a business in the Southeast of the country.
2. With shipping costs for, say a wheel, plus coating, what do you think would be the "normal" or nominal fee or what fees have you been charged before?
3. With what little I have shared with you, would you jump at it if the same offer was given to you?

I value your opinions.

[Jbat]

Powdercoating anywhere is profitable if you can do it for cheap enough to draw business. The options are endless as long as it is metal. Depending in what ovens and guns and whatnot he has might not be a bad deal, but you can get into powdercoating for about a grand if you buy a smaller oven.


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[limotinted]

Originally Posted by twicechosen

Here's my questions for you
1. What is your opinion about it as a business in the Southeast of the country.

Maybe, do a google search and see how many powdercoaters are in your area already

Originally Posted by twicechosen

2. With shipping costs for, say a wheel, plus coating, what do you think would be the "normal" or nominal fee or what fees have you been charged before?

I don't see anyway that you could have people shipping stuff to you and still be competitve with their local shops on prices. Powder coating is cheap, rims usually go for $50-$80, less if you're doing a lot of parts at once. The only real money in it is doing large custom items like motorcycle or racecar frames. Those require large commercial ovens and you're probably not doing that out of your garage.

Originally Posted by twicechosen

3. With what little I have shared with you, would you jump at it if the same offer was given to you?

I value your opinions.

are we talking large commercial ovens or just re-purposed home ovens? If it's the first, and the guns are high quality, maybe, if it's the second, nope.

[Cruzader66]

Just so you know what you're getting into, there's a lot more to powder coating than putting color on parts and throwing them in an oven. Not many customers will bring you stuff that's ready to go. There's always prep work to be done, which means you'll need a sandblaster, burn-off oven, or chemical bathtub, or maybe all three for different applications, just to decontaminate the parts. You also need a spray booth because the powder goes everywhere. There's a good amount of consumables and replacement parts to buy as well, plus your overhead.

[madwun]

Important questions to ask:

1. Why is the person getting out of the powdercoating business?
2. Can you have a detailed list of what you are getting for 3 grand?
3. Are there any financial books for the business that you can look through?
4. Is there a previous clients list that you will receive if you purchase the equipment?

Keep in mind that questions 3 and 4 may be reaching but definately worth trying.

Personally, I would try to start local with clients and work up to the shipping and receiving in the near future. Try some wild powdercoats on your own bike and let that be a rolling advertisement to generate more business.

Look around your area and see how much competition you will have. This will include other types of media coating businesses such as chrome plating. You just might discover that there is a demand for powdercoating.

[twicechosen]

Thanks for the input. That is what I was looking for for him. My concern was if the business was really good, why is this guy selling everything off. If its a good deal or you know the saying, "If it's too good to be true, it probably is!" Thanks everyone

[rquest]

Not to mention, the EPA is very strict. you can't just put a fan in your garage and blow everything into the air or neighbors back yard. The first time someone complains you're busted. However after saying that, 3k doesn't sound like a lot of $$$.

[arizonawarrior]

You'll also want to have the hardware (ovens etc) tested and inspected before buying, or get a written 90-day guarantee that they operate and do not need immediate repairs. Remember that most people will try to stay in busienss, which is easier as long as the equipment is running because its essentially free to operate the equipment until it fails or needs service. Then when there's looming expenses they shut-down instead of incur those costs.

[akitadog]

Most of the powder coaters in my area do it on the side of their other business, which normally is some sort of fabrication.