Rightsizing to Make Ends Meet

Just a few months ago, Artisan Cabinetry had a three-week backlog and three full-time employees. Now the Sheboygan, Wisconsin shop has nothing on the books, and the only employee is owner Ted Schermetzler.

Other shops might have closed their doors under the pressure. But Schermetzler made mid-course adjustments to keep his shop viable. “People are looking for the lowest price and quality is a secondary concern,” says Schermetzler. “I’m trying to cut costs to be competitive with lesser products to keep my shop busy.”

Investing in equipment

Reliable workhorse – Out of all his equipment Schermetzler can’t survive without a table saw. If it broke tomorrow, he would have a replacement by the next day, he says.To keep his prices low and work faster without employees, Schermetzler relies on technology. He recently invested in a Kentwood M507EL five-head moulder. “To build frames, I was ripping them on a table saw, edgesanding and surfacing them, which took quite a bit of time,” says Schermetzler. He can now rip 300 lineal feet in about half the time. “It’s faster, safer and more accurate to 1/1,000 of an inch,” he says. “No more crossing my fingers and hoping it’s right.”

The moulder also created a new revenue stream. Schermetzler now can produce base and case work efficiently for general contractors and other area small shops. “I’m supplying moulding to a few general contractors, and if the building industry picks up it could become a profitable revenue stream,” he says.

After adding the moulder, Schermetzler invested in a Dustek 1500 dust collector. “I don’t want to die when I’m 40, and I’m to the point where I had to make the investment,” he says. “My equipment runs cooler and cleaner; the shop looks more professional and is easier to work in.”

Being a one-man shop has its advantages, such as low overhead. “I can produce mouldings cheaper than the bigger shops,” says Schermetzler.

Studying the competition

In any industry it pays to know your competition. Larger area Green Bay cabinet shops are producing cabinets with a standard laminate interior with a quarter-inch back and a nailer strip on top. Artisan Cabinetry uses a half-inch back, which eliminates the need for a nailer, and its cabinets feature a wood interior. “I can produce a higher quality cabinet at a lower price than the big shops,” says Schermetzler.

Because price is paramount to his customers, Schermetzler is educating them on what you get for the money. “I take a $20,000 quote and break it down in terms of quality and features.” he says. “I now try to talk people out of solid surface countertops because laminate offers a similar look for a lot less money. Instead they can invest the money in well-made cabinets instead of something they’ll trash in five years.” He admits it’s been a challenge. “Menards offers cheap cabinets and it’s a constant struggle comparing apples to oranges.”

Marketing strategies

Show and sell – Shermetzler recently completed a showroom to help customers visualize and understand different wood species, grades and finishes.
Another bankable trait all small shops must possess is versatility. Schermetzler makes his own doors and drawers to keep costs down and also fabricates laminate and solid surface countertops. As in life, it’s not what you know, but who you know. Schermetzler is well-connected in his community, and word of mouth advertising has kept him busy, but even he admits that isn’t always enough. He’s tried advertising in the local paper, but after a few months he decided his marketing dollars could be better spent elsewhere. “I’ve had more inquiries through my Website, www.artisancabinetryllc.com, and exhibiting at local home shows,” he says.

To get the word out about his capabilities, he joined The Sheboygan County Builders’ Association. Schermetzler also added a showroom in November. “It’s easier to sell something when customers can see and touch it rather than looking at a piece that’s half completed in the shop,” he says.

Right training equals success

Labor-saving technology – After investing in a Kentwood five-head moulder, Ted Schermetzler is producing accurate face frames and door parts in half the time and is supplying them to local shops.After investing in a five-head Kentwood Moulder, Ted Schermetzler decided to lessen the learning curve by attending a Stiles three-day training course in North Carolina. “I had never run a moulder before, and the training was all hands on,” he says. “They showed us the math involved and how to set it up to get the results you need. To try to figure it out without that class would have been difficult but doable. I would have burned up a lot of cheap wood and been really frustrated. When the moulder was set up in my shop, the first piece I sent through required one dial change, and it was ready to go.

Looking to the future

Once the economy picks up, Schermetzler would like to run an eight-man shop and get down to a 60-hour workweek. “The first three years I was in business, I worked between 75 to 90 hours per week,” he says.

The long hours paid off. He owns his building and always tries to pay for machines rather than finance them.

If I don’t have the money, I work a few hours longer on a project and save up. My advice to any small cabinet shop is to get out and stay out of debt.
Schermetzler

Stiles Machinery, Kentwood five-head moulder, CNC router
616.698.7500 www.stilesmachinery.com

Powermatic/WMH Tool Group, Table saw, wide belt sander
847.851.1000 www.wmhtoolgroup.com

Dustke Div. Of Boshco Inc., 1500 Dust Collector
800.442.4430 www.dustek.com

Planit Solutions Inc., Cabinet Vision Software
205.556.9199 www.planitsolutions.com

Kathleen McLaughlin
kmclaughlin@wattnet.net />Cabinet Maker  | March | 2009 |