00:35:20 · Ty Morse, Jim Belosic
[00:35:20] S0: Now remember when, like, Costco has this rule that they never make more than 15% on any given item in a sale. And there was this one specific case where a, like, shipment of jeans came in, and they were way below cost. And so suddenly they were able to, if they wanted to, sell at the normal price and get, like, a 50% margin on these jeans, and they decided not to because they didn't wanna set a bad precedent. Do you have anything like that where you're kind of saying we could charge more, but we're going to not charge more because we want to basically create the best customer experience and know that when you're coming to SendCutSend, you get the best price. [00:35:58] S1: Yeah, of course. I don't know. It's gouging and it's gross. You have to protect your margins, especially when you're bootstrapping. Like, your margin is your ability to scale. But consumers are very smart. Like our customers are are geniuses. They know if you're trying to, you know, steal from them. And there's there's always options out there. And there's always like research. People go out and they're like, hey, you know, you're charging me $58 for this. And I'm looking at the raw material, you know, and it's a dollar a pound. Like, what the hell are you doing? I don't wanna have that conversation. I want it to feel very, very fair. So like I said, even if there's no competition, we should focus on having the absolute lowest prices, the fastest service, so that people just kinda get used to like, oh, this is how manufacturing should be done. I don't feel like I'm getting screwed over.
00:35:58 · Jim Belosic, Ty Morse
[00:35:58] S1: Yeah, of course. I don't know. It's gouging and it's gross. You have to protect your margins, especially when you're bootstrapping. Like, your margin is your ability to scale. But consumers are very smart. Like our customers are are geniuses. They know if you're trying to, you know, steal from them. And there's there's always options out there. And there's always like research. People go out and they're like, hey, you know, you're charging me $58 for this. And I'm looking at the raw material, you know, and it's a dollar a pound. Like, what the hell are you doing? I don't wanna have that conversation. I want it to feel very, very fair. So like I said, even if there's no competition, we should focus on having the absolute lowest prices, the fastest service, so that people just kinda get used to like, oh, this is how manufacturing should be done. I don't feel like I'm getting screwed over. [00:36:51] S0: Need a price compare because they just know that the best price and the best like timelines and stuff is gonna be here.
00:36:51 · Ty Morse, Jim Belosic
[00:36:51] S0: Need a price compare because they just know that the best price and the best like timelines and stuff is gonna be here. [00:36:56] S1: And if you lower prices, people do more with it. Like they order more stuff. They're gonna... It's gonna allow their company to grow. I'm gonna give them some room to have margin on their end product. If I charge someone, you know, I gouge them on margin and then they gotta go mark it up. Like their business isn't gonna survive. You know, all these little middlemen, you know, they're adding value or whatever, taking their little slice, it gets wildly expensive. I mean, that's why we're trying to go so vertical. It's so that we eliminate a lot of middlemen, pass that price on to the consumer. They can run a better business. They can grow. You know, I want people to bootstrap off of us. You know, that's that's our legacy. I'm proud of that. [00:37:36] S0: When you're turning on a new factory, you want to basically minimize the number of days between actually putting dollars down and signing some contract and things going out the door as finished products. What's the process for minimizing the number of days on that?
00:37:36 · Ty Morse, Jim Belosic
[00:37:36] S0: When you're turning on a new factory, you want to basically minimize the number of days between actually putting dollars down and signing some contract and things going out the door as finished products. What's the process for minimizing the number of days on that? [00:37:50] S1: You gotta gamble. So like right now, our one hundred and fifty thousand square feet across the street, when we started negotiating the letter of intent, we placed POs on equipment. And it was like equipment for that building for that layout, even though we don't have a lease like as of as of right now, we don't have a signed lease. Pretty damn close, but we've already scheduled electricians. We're hiring for that building. We're taking a gamble. We've done it many times. If the gamble fails, then we'll go to plan B, plan C, whatever. It'll cost us a little bit of time. But if the gamble pays off, that we're sixty days ahead of everybody. So for us, you know, if I can save thirty days, that's millions of dollars. You know, the way that it compounds, the faster I can get into production, then the faster I can scale that facility. So I don't really know the math on it, but like thirty days saved at the beginning is like, you know, $10,000,000 of new capacity after twelve months because you're so far ahead, you know, the way that that ramps. So, you know, we we gamble a lot. We kinda make some educated guesses and some hopes.
00:37:50 · Jim Belosic, Ty Morse
[00:37:50] S1: You gotta gamble. So like right now, our one hundred and fifty thousand square feet across the street, when we started negotiating the letter of intent, we placed POs on equipment. And it was like equipment for that building for that layout, even though we don't have a lease like as of as of right now, we don't have a signed lease. Pretty damn close, but we've already scheduled electricians. We're hiring for that building. We're taking a gamble. We've done it many times. If the gamble fails, then we'll go to plan B, plan C, whatever. It'll cost us a little bit of time. But if the gamble pays off, that we're sixty days ahead of everybody. So for us, you know, if I can save thirty days, that's millions of dollars. You know, the way that it compounds, the faster I can get into production, then the faster I can scale that facility. So I don't really know the math on it, but like thirty days saved at the beginning is like, you know, $10,000,000 of new capacity after twelve months because you're so far ahead, you know, the way that that ramps. So, you know, we we gamble a lot. We kinda make some educated guesses and some hopes. [00:39:02] S0: When you're thinking about taking some kind of risk like that, what's going through your mind as in you obviously wouldn't hire electricians if you didn't think that building was going to operate, you know, on some date. So at what point does it make sense to just take that gamble, hire the people, schedule things?
00:39:02 · Ty Morse, Jim Belosic
[00:39:02] S0: When you're thinking about taking some kind of risk like that, what's going through your mind as in you obviously wouldn't hire electricians if you didn't think that building was going to operate, you know, on some date. So at what point does it make sense to just take that gamble, hire the people, schedule things? [00:39:19] S1: It's optionality. You know, we always have a worst case scenario plan. I will rarely take a gamble that, you know, I can't go to plan B on. If I ordered all this equipment and the lease fell through, and I had no other building like that would be incredibly painful. So yeah, maybe we go to a building that's a little further away or it's a little older, has less power or something like at least we can keep moving. So it's always aim for perfection and you'll end up at excellence. That's what Brian Wolf, our VP of operations always says. So we have this like brilliant dream that we're trying to hit, and usually doesn't work out perfectly, but the next step down is pretty damn good. [00:40:05] S0: How do you kind of maintain a maniacal sense of urgency?