Well, let’s look at it from the cue maker’s perspective. Let’s take a cue that was quoted at $3,600.
20% down is $720 and that is a lot of money that can already buy a pretty nice pool cue. I concur.
The cue maker has to get the materials or at least replenish his inventory for what he’ll use and the
replacement cost is often more than their inventory cost. Be that as it may, the cue maker has to
cover his materials expense and there can be spoilage like when working with small abalone inlays
that has a tendency to split & fracture causing it to be discarded as waste just like other materials.
One of my cues has hundreds of ivory & abalone inlays that took a lot of time to install which translates
into time, i.e., labor. That cue took a lot of CNC programming time arranging the custom design before
a single piece of wood was cut. Plus, the physical time required to assemble the cue throughout the
various phases encompassing 14 months from order date to completion. I won’t bother telling revealing
how many hours was required. For what I spent, the cue maker’s hourly rate, if he was billing hourly rather
than his flat rate quote for my cue, well, he was tremendously underpaid.
And during the 14 months my cue was being made, the 20% I paid my cue makers has to help cover their
materials expense, labor, overhead, occupancy, utilities, salaries, payroll taxes, accounting costs, benefits
costs, insurance (general liability, casualty, fire & flood, workers comp, auto), postage, communications,
advertising (expressed as unpaid time invested to produce videos or photos of cues made) and trade shows.
So even if the cue maker had 25 cues underway and all of the cues cost $3,600, which is a very high average
cue cost but let’s make the average cost $4,000. That’s $800 down payment x 25 cues = $20,000 without any
other payments until the cues are completed. Let’s say the cue maker knocked out all 25 cues in 9 months and
that would be a feat feat since glued veneers should sit for awhile. Jerry R. would let his work sit for 10-12 weeks
drying. So over the 9 months, that comes to $2225 (round money) a month. Pretty hard to run a successful, high
quality cue making operation and for this train to ever reach financial momentum under these conditions is to have
an assembly line knocking out hundreds of cues but with very few customs. Running a cue making business is no
different than any other business. You have to cover your costs and make a profit so accept the terms or don’t buy.