Jem and Justin chat about custom job shop work vs products, their Airtable ERPs, Justin's brain-dead YCM mill, and consider Profit Sharing and more in the first episode.
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Show Info
HOSTS
Jem Freeman
Castlemaine, Victoria, Australia
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Justin Brouillette
Portland, Oregon, USA
Good morning to you.
Justin:I don't know if I told you this, but since the last time I tried to set the
Justin:recurring reminder and then you'd had a daylight savings time kind of thing.
Justin:Yeah.
Justin:Yeah.
Jem:Which has been really good actually.
Jem:So when we chatted last week, that was kind of the first time in a long time that
Jem:I'd managed to get up at 5:00 AM and then daylight savings changed over the weekend.
Jem:Suddenly.
Jem:An hour easier to get up at 5:00 AM.
Jem:So I've been taking advantage of that and I've been doing it every
Jem:day and coming in and like getting some proper play time and fantastic.
Jem:That's been, it's been good.
Justin:Oh, wait, we've chatted about that before.
Justin:I love that time when there's nobody around.
Justin:There's no questions.
Justin:Just few in like a quiet room of machines ready to be used for some reason.
Jem:Yeah.
Jem:Yeah.
Jem:That's kind of the dream.
Jem:Oh, is my alter ego.
Justin:I feel like you were in a band or
Jem:are in a band.
Jem:Yeah, well, this gem in the hologram, so you're familiar with it,
Justin:but I need to see it now.
Jem:Kids, kids got chain from the eighties.
Justin:Oh, are you in the cartoon?
Justin:No,
Jem:before my time, but I've got the Jigsaw puzzle now.
Justin:Interesting.
Justin:I haven't heard of it.
Jem:That's a good reason.
Justin:91% of people like the show though.
Justin:So it's not like you're alone.
Jem:How are you
Justin:going?
Justin:Pretty good.
Justin:We're I dunno, it just feels like we're in constant limbo.
Justin:It's versus how things were the first few years of having this like job shop
Justin:business, things were easy to get and source and prices were the same and
Justin:it just kind of always a new thing.
Justin:Yeah.
Justin:We've talked about plywood a little bit.
Justin:The other day.
Justin:You switched to material to try to have a better supply, you know, from
Justin:the Baltic Birch is the issue lately.
Justin:It seems.
Justin:And so we tried to switch and now the new thing is everybody's gobbling
Justin:that up and it's not available again.
Justin:So just kind of always playing whack-a-mole with that.
Justin:Other than that, I don't know.
Justin:Trying to do too much usually.
Jem:Yeah.
Jem:Now if I have a good week, Productions kind of quiet at the moment.
Jem:We need a little bit more flowing through onto the floor.
Jem:Kind of got a lot of being custom jobs in the wings, just waiting to drop.
Jem:So I feel like the end of the month, it's going to be crazy.
Jem:But at the moment, we're pretty crazy just getting through as much
Jem:as we can to free up production.
Jem:So, yeah, just trying to smash out everything that's in the system
Jem:and get that capacity for later on when we're going to need it.
Jem:I think we're good.
Jem:The team team's going really well.
Jem:Good vibe.
Jem:I'm just, yeah.
Jem:Quoting, quoting, quoted, quoting it's all Mike.
Jem:I feel like that's all I do at not morning playtime.
Justin:It's going to say is that one of your main
Justin:responsibilities still is quoting.
Justin:Yeah.
Jem:Share it between myself and Aaron and Sarah, there's kind of three of us.
Jem:So we work on quotes, but Aaron and I are the main ones.
Jem:They sort of sit down and crunch numbers on jobs and we do it in grasshopper.
Jem:And I
Justin:knew we were going to get into that.
Justin:You've sent me screenshots before videos of your grasshopper, and I've
Justin:used it some very functionally as well.
Justin:I'm not very great with the design aspects of it, which is what a lot of
Justin:my colleagues used it for in school.
Justin:But you're like quoting systems through is fantastic.
Justin:Like at least as an individual sentence.
Justin:It's
Jem:fantastic.
Jem:One word.
Jem:Yeah.
Jem:Out of control.
Jem:Do you like it that way?
Jem:I do.
Jem:It's really good.
Jem:We've actually tie-dyed it up.
Jem:Papes we've um, kind of switched.
Jem:Switched way, the calculations that happening previously, we had that crazy
Jem:grasshopper patch, which you've probably seen screenshots, which was by wires
Jem:everywhere and all the, it was basically just a complex spreadsheet, those
Jem:running, all the calculations required.
Jem:We've seen recently we've moved all of the sort of calculation
Jem:side of that over to editor.
Jem:And so now gossip is really just there as a geometry input tool.
Jem:So it's like, here's a sheet of parts.
Jem:How long are they?
Jem:How many inches are they?
Jem:And what's a square meterage, et cetera.
Jem:And then we plugged that rotary to air table.
Jem:So gossip is a smaller part of it.
Jem:It's still there.
Jem:Um, but that means that a table's doing all the calculations.
Jem:Because we were running into issues with blank.
Jem:Wow.
Jem:You know, in the current climate with material processes, changing
Jem:every day, just having to manually update, like all the true that'd been
Jem:now with an inventory base in air table, which is kind of the master
Jem:point and everything references that.
Jem:So whether it's quoting a product pricing, everything, so it ties
Jem:back to that infantry title.
Jem:So it's been really good.
Jem:Yeah.
Justin:That's great.
Justin:That's kind of the dream.
Justin:We had a guy.
Justin:Built up.
Justin:A lot of arrows are doing the Nack Wall, like trying to get that into
Justin:an air table, adding skews and things, just stuff we hadn't really
Justin:done before and was tying quotes.
Justin:We got from vendors and materials into all that.
Justin:And it's, it's fairly challenging to do in a scheme of like, you know, different
Justin:materials and different, different types of things that are, that aren't alike.
Justin:Time, you know, labor, and then you've got like material and then there's like cost
Justin:breaks in there and yeah, maybe I'm over maybe taking it too far in some cases.
Justin:No, it
Jem:gets, it gets deep.
Jem:And like the stack gets really deep, very quickly wild, um, like a sort of diagram.
Jem:I can't masturbate in an app in air table that we got.
Jem:The graphic dive hour, like all the connections, it was kind of like if you
Jem:could see a table as a grasshopper patch.
Jem:Okay.
Jem:There's
Justin:like a I think it's called schematic or something
Justin:like that little plugin.
Justin:Those are really cool.
Justin:That was actually one thing I was going to ask you about really irritable was
Justin:the thing that I struggle with with it.
Justin:I'm doing a lot of the, like, you know, architecting of how it
Justin:potentially works for others to use.
Justin:I find it challenging to have like an overall view of you have all these bases
Justin:potentially, or even if you just have one base with a bunch of tables in it, how
Justin:do you, how do you keep track of that?
Justin:Or do you use a different system outside?
Justin:Do you use a base to control the bases?
Jem:Yeah, I've thought a bit about that.
Jem:I do personally.
Jem:My solution to that is to have a link index.
Jem:So we came from using workforce.
Jem:Yeah, everything.
Jem:And I still use workflow is my sort of personal
Jem:organizational note taking system.
Jem:So I've got a tab open all the time, and it's basically a link, a link index, which
Jem:is a shortcuts tool, the key documents.
Jem:Cause I just get lost.
Jem:Like they got a Google doc say a table, blah, blah, blah.
Jem:So many different things.
Jem:And I just.
Jem:That quick draw sort of going jumping to where I want to go and not have to
Jem:sort of navigate through these systems.
Jem:Um, so that's been my sort of personal hack, but I am aware of that, like for
Jem:our guys, like trying to remember where to go, to find the information about
Jem:being as like they'd be down in a base.
Jem:Yes.
Jem:So one thing we've done recently to try and tackle that is like,
Jem:we've got a technique base, which is supposed to be like out.
Jem:No, I'd go to a document on how to do anything in the company.
Jem:And when we first started using a table, we built out like heaps of tabs across the
Jem:top, and everything was in a separate tab and it was starting to side scroll to find
Jem:the right tab and search functionality is kind of a wacky and air table.
Jem:And so our solution to that has been to just have like a big buffet single table.
Jem:And you just like.
Jem:Everything into that, but everything's just a separate,
Jem:um, a flying item and then using views and filters to access that.
Jem:Yeah.
Jem:I feel like VA's and filters like are so powerful.
Jem:Yeah.
Jem:And by having that sort of single, you know, dumped spot with all that
Jem:information, I mean, search functionality is quite good within that as well.
Jem:So that's been our sort of, go-to more recently.
Justin:It's kind of, one thing that's challenging I find is once
Justin:you start making something, it's a little bit hard to back it out.
Justin:And like, you can't really merge stuff from other ones unless
Justin:you do the sink table, but then they don't really merge it.
Justin:It's really brilliant.
Justin:If you've sought out, it's the same as fusion, right?
Justin:If you've thought everything out from the beginning perfectly, it works great.
Justin:But if you need to change it, God help you.
Justin:It it's you gotta know how to basically undo all of your challenges and I love it.
Justin:I love it.
Justin:It's it's I love the challenge of it.
Justin:I love how it's air table is one of the only things that has worked, and
Justin:we've always had a small team of people.
Justin:Two people total and four at one point.
Justin:But I mean, we tried other ones, other project management things, and they all,
Justin:all sucked for one reason or another.
Justin:And a lot of it was because it wasn't, we weren't able to do
Justin:really what we needed to do with it.
Justin:It was always like too much about the middle-management or like, you know, the,
Justin:all the ERP is, are super driven off of like an old school machine shop mentality.
Justin:It seems like.
Justin:And.
Justin:I like being able to like, make it what we want and I'll take that over, having
Justin:too much stuff that nobody wants to touch or the process fails completely.
Justin:Did he, did you
Jem:research, did you think about getting something off the show?
Justin:Yes.
Justin:Yeah.
Justin:I mean, I kind of especially coming into this, I think we both, maybe if I had
Justin:to just speak for us, at least for my.
Justin:I come into all of this.
Justin:So not like naive to any type of, like, I didn't learn anything about project
Justin:management in school or business.
Justin:It was like, here's, here's how you design something theoretically.
Justin:And then everything after that, you know, you kind of figure it out on your own.
Justin:So, you know, I knew of these things basically from like listening
Justin:bomb or like something else you find out, oh, there's these other
Justin:software things that aren't Trello.
Justin:And which I, you know, I, Trello is great for me at one point, but I just find them
Justin:all to be a super expensive like job shop and B two or whatever the other ones are.
Justin:And like I was saying before, it's super driven by, it seems like what the perfect
Justin:old school machine shop was or is, or what they are supposed to be or something.
Justin:And I just.
Justin:Or like, they have to be installed on site as some kind of like local server thing.
Justin:Like I don't even work on site half the time.
Justin:Like that's going to suck.
Justin:Yeah.
Jem:Yeah.
Jem:We sort of 18 months ago when we were like, right.
Jem:Workflow is not going to call it anymore.
Jem:Cause we've kind of built a little hacky ERP in WorkFlowy with
Jem:hashtags and deep menus and stuff.
Jem:So amazing.
Jem:That was great fun.
Jem:But.
Jem:But we kind of like, okay, right.
Jem:This isn't gonna work moving forward and we need them all.
Jem:We need an IPI basically workload didn't think still
Jem:doesn't have an API, like cool.
Jem:We need something a bit smarter that we can connect to Shopify.
Jem:And it gets some automation happening and we shopped around a bunch of
Jem:things and we researched proper AIPs and everything was like, well,
Jem:that's yeah, that's a lot of money.
Jem:Don't know that we can justify that yet.
Jem:I think fulcrum looked really good.
Jem:It was at the time expensive.
Jem:It seems out of that range, but I think you're right.
Jem:Like it's everything that is kind of close to manufacturing fields,
Jem:very traditional job shop focused.
Jem:Anyway, we settled on building our own in our table.
Jem:And in hindsight, I didn't want Slido.
Jem:We've probably spent the equipment.
Jem:In just people's wages building.
Justin:absolutely.
Justin:Oh my God.
Justin:If not more.
Justin:Yeah, no regrets, but what I love about that, and you hear like Saunders talking
Justin:about this too, is with like their systems, two hunters in Grimsby is at
Justin:the end of the day, we can still keep editing it ourselves and we don't have to
Justin:pay somebody else to change their system.
Justin:And so if.
Justin:It's like, well, who wants to tackle that for the most part?
Justin:Like, we don't have a lot of stuff.
Justin:That's like custom scripted.
Justin:It's got enough built in automation features.
Justin:And like you're saying, the PIs used a decent amount of like Zapier Zapier's
Justin:AP, or I don't know if I've said that out loud to anybody else I say as, yeah.
Justin:So it's yeah, it's pretty good.
Justin:I, I think that's one of the things we originally chatted
Justin:about was CNC T routing.
Justin:Eh, fusion air table is about the, our top three.
Justin:How are you doing this?
Justin:And I found it pretty hard to share.
Justin:Like, I want to just share kind of more about air table, but it's
Justin:pretty hard to share the process.
Justin:Yeah.
Jem:Yeah.
Jem:I've tried to give people denies of hours before and then
Jem:yeah, it doesn't quite work.
Jem:It's hard.
Jem:I mean, Probably because if I want a screen share and give a
Jem:video demo, it's like it's full of client information, exactly.
Jem:Financials and stuff, which, you know, it depends who it is.
Jem:Might be fine, but I'm not going to do a YouTube video talking through
Jem:our like ordering system because it's, everything would just be grayed out.
Jem:So yeah, it's a tricky one.
Jem:You almost have to let duplicate it and put in dummy data and then
Jem:that's, that's just the thing job
Justin:it is.
Justin:Yeah.
Justin:I've been trying to think through process.
Justin:I've made a couple like online courses, basically in the beginning
Justin:of the pandemic here, we lost a bunch of work in 2020, and we weren't
Justin:getting prospect of Newark at all.
Justin:It was just like nobody had wanted to do anything.
Justin:The businesses all stopped.
Justin:It seemed like, and I had, I had like probably in a week or two, a half
Justin:dozen people ask about doing training.
Justin:Of the type of machine that the CNC router we had.
Justin:And I was just like, well, Hey, I'm not going to your shop and training
Justin:you right now because I don't know what this thing is and nobody's working.
Justin:So my solution was to try to make an online course that actually turned out
Justin:to be better than I thought it would be in terms of wanting to take it.
Justin:I can't speak to how good it is to bias for that, but it's
Justin:like, it was pretty good.
Justin:The process and it seems like it helps some people, but I've wanted
Justin:to make more of those things because a, it spreads easily.
Justin:Right?
Justin:You don't have to come and go anywhere.
Justin:You can take it from wherever.
Justin:So one of the things I've thought about is trying to do an air table.
Justin:Like I have people ask about it whenever I share a little bit, like how, how are
Justin:you doing your table a year P thing?
Justin:And I'm like, good.
Justin:That's exactly what you're saying.
Justin:It's like, I can't show you ours.
Justin:Like, you know, I got to like redact half of it.
Justin:And so that was my thought is to duplicate it as, you know, a blank
Justin:basically, and build it kind of in steps and see how that goes, I guess.
Justin:Yeah.
Justin:I mean,
Jem:sharing little bit.
Jem:Yeah, I suppose it's not a cost then, but like you inspired us to look at
Jem:the QR inventories, scanning stuff.
Jem:For instance, I'm trying to go at that giant and I saw that on your Instagram
Jem:or like, oh yeah, we need to fund, um,
Justin:I, I find that I kind of get.
Justin:I don't know, just friends and things that I've brought up.
Justin:Like we using QR codes functionally too, or like, oh, you should try pitch.
Justin:That's like big, give me this look of like, what is wrong with you?
Justin:Because for the longest time they were like laughable.
Justin:Right.
Justin:You know, they didn't work half the time, but honestly, I even people
Justin:here like Justin, what is wrong?
Justin:Like nobody wants to scan a QR code, but I find them like infinitely, usable,
Justin:like so useful to like quickly pull up something it straight to it, you know?
Jem:Yeah.
Jem:Okay, great.
Jem:I'm interested in your, so the customs are to be able, but isn't this, like
Jem:how much time are you spending quoting?
Jem:Is there an appetite for custom work over there?
Justin:As in we designed something or people are making things and then
Justin:want us to make it like Prius for them.
Justin:Yeah.
Justin:People
Jem:bringing you either ready files or like kind of partially
Jem:ready files for machining.
Justin:Yeah.
Justin:That was kind of what we did largely from 2017, but I kind of
Justin:accidentally started the Portland CNC.
Justin:The reason I had some awareness that that would work was I couldn't get anybody
Justin:to make things that were custom locally.
Justin:It was especially if it had to use flavor of being a 3d model, 3d machining, it
Justin:was like our machine can't do that.
Justin:And I, that, you know what, what's your machine.
Justin:Then we can do that.
Justin:You just don't know how to set it up.
Justin:You know, I was trying to make my own products at that time.
Justin:And I was like, well, set up the side business.
Justin:It kind of happened upon the name which worked out for SEO.
Justin:And from that, it, it, you know, I wouldn't say it took off, it kept
Justin:me busy until all of a sudden I was in a new shop and another shop
Justin:and had hired one or two people.
Justin:And honestly, I think a lot of our, if we call it success was that we were willing
Justin:to try things and try to take on things.
Justin:People didn't want to do, especially with routers.
Justin:I think a lot of there's a lot of capability in the metal milling machining
Justin:world, but yeah, nobody wants to do 3d things or didn't for the longest time.
Justin:I think fusion helped to change a lot of that.
Justin:Oh yeah.
Justin:We kind of have started to move away from that.
Justin:As we're trying to do our own products, there's still definitely a desire.
Justin:We still have a handful of clients that want either repeat work or
Justin:a lot of prototypes work was kind of where we hit our sweet spot is.
Justin:We are not really set up to do like big production runs of anything
Justin:we can't really do finishing, like we don't have the space for that.
Justin:So it's, it ends up being, we used to get a lot more, but for a few reasons
Justin:with focusing our inquiries a little bit more, so we get jobs that we will
Justin:do well on rather than every spectrum of jobs, because there's a lot of the
Justin:introductory people to CNC that just don't, it takes a lot of education
Justin:time to bring them into the process of.
Justin:Here's what you can make your project start.
Justin:Right.
Justin:And that whole process is basically free.
Justin:It's tough when you're a small company to help people along.
Justin:So, yeah.
Justin:I've always been curious how much of that you do?
Justin:I know I've seen a handful of projects and you also, it seems like most of your
Justin:business comes from product related, things that you design and sell.
Justin:Yeah, we do a fair bit of it.
Jem:We certainly get a lot of quiet inquiries.
Jem:The Stripe CNC, machining jobs.
Jem:And it's a real mix.
Jem:And I think, yeah, the education side of it's a really interesting challenge
Jem:of like, how do you make it accessible, but not spend excessive amounts of time
Jem:helping problem-solve someone's files.
Jem:Yes.
Jem:And so I think.
Jem:Having good resources online, which I would say we dine, like we've always had
Jem:just like the single plates, all the page.
Jem:Like these are some considerations with file types and these of main
Jem:sort of tool diameters we use and, you know, offsets and blah, blah, blah.
Jem:Yeah, I think we could, if we wanted to sort of focus on that
Jem:area, having better resources online, even like file templates.
Jem:Black, you know, this is gold standard for how to set up a rhino file or
Jem:a fusion file, the chaining, but they need, you're relying on people
Jem:who have those skillsets and that's not always going to be the case.
Jem:So, but to answer your question, we do a fair bit of it, sort of one-off unit
Jem:parts, come off the machine and then go straight out unfinished unsanded or there
Jem:might be a bit of post-processing around.
Jem:Over's a bit of edge sanding, and then now.
Jem:It's a really broad range.
Jem:And I think, yeah, it often is sort of prototyping related, whether it's
Jem:student work or commercial work, where they're just trying to get
Jem:prototype off the ground or they're testing ideas for land for Iran.
Jem:I guess we can then support larger runs up to a point.
Jem:Like we're not very rarely doing anything in the thousands, but we're
Jem:comfortable doing some of being on hundreds of units of something.
Justin:I kind of similar, pretty similar.
Justin:Yeah.
Justin:Yeah.
Justin:I've always had a hard time just frankly, like both quoting and then
Justin:like scaling a job from, oh, you know, some will say, oh, I want to,
Justin:if I just did 10 of these or 500 or a thousand, what would be the pricing?
Justin:And I'm like, I mean, I haven't run 10 of them yet.
Justin:You know, like how do I know what a thousands is going to be
Justin:like, like, are we really going to have any cost savings in this?
Justin:And I think some of that stuff comes with maybe the more traditional experience
Justin:with going through a shop, you know, education, or like coming up through it.
Justin:And I'm just like, I don't wanna lose my shirt, you know?
Jem:Yeah.
Jem:That's a tricky one to balance.
Jem:We'll often like quote the prototype and then put estimates on the.
Jem:Same that they can get resolved once we've machined, you know,
Jem:one, a little more, a few of them.
Jem:Yeah.
Jem:But it's hard because people are often coming with an idea for a product
Jem:and they, like, they came to kind of block in their product pricing and
Jem:say, it's a strict drinking balance of giving them a price saving.
Jem:If it's not fixed.
Jem:Yes.
Jem:Has to be informed by the reality of actually doing it.
Justin:I feel like that's why we do it.
Justin:Yeah, sure.
Jem:I feel like we do quite a bit of work for people who are
Jem:effectively doing product development.
Jem:So people have become more and more aware of it slightly.
Jem:It's like
Justin:consultants, basically.
Justin:Yeah.
Jem:As we've tried to sort of zero in on what our target
Jem:market is or what we're good at.
Jem:That's definitely something that's high on my list.
Jem:Yeah.
Jem:Product development consulting within a very narrow window of
Jem:sort of materials and processes, but people come to us with, yeah.
Jem:I want to develop X and we then help them get that to a sort of a make-able
Justin:thing.
Justin:I definitely, you know, when we were in our, let's say, Hey, day of, I felt
Justin:like we've kind of turned the page.
Justin:Seeking that that's our top capability.
Justin:Like w we're good at it.
Justin:I think, you know, helping people make their products.
Justin:I don't know that it's what I want for a longterm business.
Justin:It's really challenging to make that stable and profitable and reliable.
Justin:I think I joked before it feels like everybody wants
Justin:their thing done between five.
Justin:10 days.
Justin:And that's impossible to plan for in terms of scheduling.
Justin:And, and I had a early employee that was really great.
Justin:He had a lot of experience and he would always tell me that we were missing the
Justin:missing, being able to bill some of that early development process with clients
Justin:of like, basically from the time you get their file to even the time when
Justin:they agree to a quote, there's a lot of this back and forth that happens with.
Justin:That's not producible.
Justin:And, and I, I kinda went the side of always, like, I'm never
Justin:gonna make somebody part without letting them know it doesn't work.
Justin:There's like a, I don't want to waste the material.
Justin:I think that's wrong to just make stuff that doesn't work.
Justin:Part of being a service that helps people is it should have some ethics to it.
Justin:And he would always say, we'd give that away.
Justin:And I, I think he's right, you know, at a certain sense, but it's really
Justin:hard to also say, pay me money before.
Justin:Help you with your project, you know, like yeah.
Justin:It's a challenging prospect for somebody to go.
Justin:Yeah.
Justin:Well, I don't know.
Justin:Before we look at that, I need a little money here.
Justin:You know, like it feels like the mob or something.
Jem:Yeah.
Jem:I suppose if you can communicate your, you know, your offering and, you know,
Jem:skills set, but before doing the work.
Jem:So, yeah, what's that value proposition of what you're going to
Jem:do for them then that could work.
Jem:But yeah, that's a really tricky gray area and it's so variable job to job.
Jem:Two was that, was that advice from your employee coming from
Jem:sort of industry experience, wave I'd seen that that was different?
Jem:Or was it more just like this doesn't feel right?
Justin:I think maybe both in terms of.
Justin:I don't know, I don't have much experience.
Justin:I think maybe one of the reasons I was attracted to like you and
Justin:what you were doing was it felt like we had a lot of that overlap.
Justin:I don't know a lot of shops to do CNC routing as a job shop, especially locally.
Justin:It's just not that common, I guess.
Justin:So it feels like some of those conventional thoughts
Justin:about them and how they work.
Justin:Like I just, and some of that's completely being naive to coming into this.
Justin:Not knowing that there probably are a lot more than I'm aware of, but
Justin:he had no experience in that either he, he had done like without going
Justin:too deep in his background, but he just had a lot of different types
Justin:of experience in different types of manufacturing, custom making things.
Justin:And, and then seeing also he'd helped a little bit with quoting what we were up
Justin:against in like how, who who'd spend, you know, a decent amount of time.
Justin:And then not when a project, you know, it's, it's kind of like sales
Justin:in a certain sense in that way.
Justin:I suppose that I'm also challenged at, so I don't know.
Justin:Yeah.
Justin:It's, it's an interesting game.
Justin:I don't know that I ever thought I would be doing and
Justin:doing like a service business.
Justin:It wasn't really what I was imagining.
Jem:Yeah.
Jem:W what way are you imagining?
Jem:Did you have a plan?
Justin:The plane was like, I want to design and design and, or make things,
Justin:you know, and probably selfishly in the way that I want to do it, rather than
Justin:following something that felt wrong or maybe lesser in my view of quality or
Justin:ethics or, you know, different things.
Justin:And so, yeah, I went to architecture school.
Justin:Didn't like architecture as a business at all, I've did about
Justin:a year and just was not for me.
Justin:So it was pretty easy.
Justin:I'd already done some like product development with this
Justin:Kickstarter and some other products under what is now next studio.
Justin:That's how I basically fell into trying to make things for other people with
Justin:Portland, CNC by trying to make my own products and having bottom machines.
Justin:The CNC part was basically an accident like Portland CNC was like, I just
Justin:need to make a little money so I can pay this machine every month.
Justin:And there was enough people that kind of kept growing to a point
Justin:where I was like, well, this is basically a full-time thing now.
Justin:So I've always wanted and had the passion to like design and make things
Justin:that people can use or find enjoyable.
Justin:That's that's my.
Justin:Driving passion of like making it good.
Justin:And then also now I've found that I love to make those really efficient
Justin:processes to make those things.
Justin:That's kind of like my new saying, how can we make that faster?
Justin:You know, it keeps the same quality.
Justin:Yeah.
Justin:I don't know if that was a long answer.
Justin:Yeah.
Justin:That, that,
Jem:to me, that speaks to one of mine sort of ongoing.
Jem:Conundrums, which is, I love that sort of internal, you know, product
Jem:design, making things for our end product range, with our own processes.
Jem:And from a business perspective, that sort of work is much more predictable.
Jem:We know what the margins are in a product and we can sell it.
Jem:And you know, if we've priced it right, then we make money, but
Jem:there's, I'm aware cause we've been so.
Jem:Custom external work has always been by far the greater proportion of our revenue.
Jem:Pretty much since the beginning.
Jem:Yeah.
Jem:I'm aware that that external input brings a whole lot of richness as well.
Jem:Yeah, true external ideas.
Jem:A lot of our products have come from client problems.
Jem:You know, I need a thing to do X and it's true.
Jem:We can, we can come up with a thing that does that.
Jem:And we design a thing and you know, maybe we completely undercharged for
Jem:that design or we don't charge for the design at all, but we end up with
Jem:that sort of a product out of it.
Jem:And some of our best products have kind of come from those external inputs.
Jem:When I've at times I've sort of fantasized about like, cool, ah,
Jem:I'm done, let's turn off custom.
Jem:I can't do this.
Jem:Let's just go home.
Jem:I then, you know, think about, you know, that external energy and, you
Jem:know, problems are good thing, problems lead to new solutions or new ideas.
Jem:And yeah, I think that's at the moment, my current thinking, I don't
Jem:think we could ever turn that off.
Jem:Um, if we go got to sort of an 80% product mix, I think there'd still be, you know,
Jem:10 to 15%, uh, the SU customs, special projects, whatever you want to call
Jem:it, event that problem-solving world.
Jem:Yeah.
Jem:I'm not to say that there's not problem-solving and just making
Jem:product, because as you said, like building those systems and
Jem:efficiencies is really enjoyable.
Justin:No, that's interesting.
Justin:I've like, I hadn't thought of it in those phrases of like internal
Justin:versus external drive or input.
Justin:And that I was shaking my head vigorously as you were describing
Justin:that, because there's so many things like, you know, a couple plays here.
Justin:It said we've basically in, when we decided to start doing more
Justin:product related things we had to discussion, it was like, well, we
Justin:basically been tooting this factory.
Justin:You know, our own little factory from my novice experience and making things,
Justin:you know, like I'm always capable of thinking up crazy things that probably
Justin:aren't producible or not profitable.
Justin:And I've been slowly learning how to make that profitable by working through other
Justin:people's problems for their projects.
Justin:That's so true that like we've created all these new ways to do fixturing,
Justin:as I think is a big tease towards how.
Justin:Made a very cool little as you call it, the pencil sharpener.
Justin:I'd love to talk about that at some point, too, right?
Justin:Like all of those potential, like one of our first decently, and if you
Justin:can see it behind me does iMac basis.
Justin:You're kind of like sitting up there.
Justin:So that was basically that manufacturing process came from.
Justin:Projects of how to hold it.
Justin:It's not complicated, but it's a tall ish chunk of wood that we
Justin:wanted to come out really clean and pair with an apple product.
Justin:So it's like, it can't be flawed and with a bunch of tooling marks on it, and we
Justin:don't want to hand sand everyone to death.
Justin:So, yeah, that's so true.
Justin:How, I guess I had died of the virtues of it internally, as much as I've
Justin:thought about how much it's painful.
Justin:Right.
Justin:Do all these things we just talked about with custom work that is challenging,
Justin:but it's definitely valuable.
Justin:Yeah.
Justin:I feel
Jem:like we have the conversation really regularly here in staff meetings.
Jem:It's like, oh, well that job went terribly.
Jem:We've definitely lost money on that.
Jem:But then on the bright side, you know, we learned how to do, you
Jem:know, this new 3d machining or, you know, we learn how to do this.
Jem:And like, I think.
Jem:Yeah, I'm a dangerously optimistic person, which is terrible when you're
Jem:responsible for quieting all the projects.
Jem:But it does mean that when you sort of cultural, culturally, I think we're always
Jem:trying to sort of look on the bright side of experience and want to be land turfing.
Jem:That's really important
Justin:takeaway from.
Justin:It's almost like, I don't know.
Justin:Do you go as far as to have project debriefs of like that kind of thing,
Justin:or is it mostly that status meeting?
Justin:That's like just comes up how we're trying
Jem:to get, trying to close the loop on that.
Jem:Um, for, for a long time, there's been this disconnect
Jem:between quoting and report data.
Jem:We use zero projects to track time and get a sense of how.
Jem:And the idea is that that data is, you know, it's not about whether someone,
Jem:you know, did X number of hours per day or whatever it's about, you know,
Jem:feeding profitability, profitability, whether that quote was good or not.
Jem:But there's always been a bit of a disconnect because you know what
Jem:we were quoting in grasshopper and then reporting zero, it was like,
Jem:you'd have to sit down and write.
Jem:And again, to draw
Justin:all those.
Jem:the plan with air table not requiring an anti-police dubbing.
Jem:The next step is to build out the reporting functionality within a table.
Jem:So it's like most loop you at the end of the job, you end up with
Jem:two cells next to each other.
Jem:And it's like, this is what I quoted.
Jem:And this is what happened.
Jem:And like really.
Jem:Comparison, which can then directly inform the next quote or the
Jem:next thing that was like that.
Justin:I mean, theoretically, you get to this place.
Justin:All right.
Justin:I dunno if you've do you know, Zometry like, do you have that there?
Jem:Uh,
Justin:yeah, so they they've, you know, have some types of very algorithmic.
Justin:Quoting system where you throw out a solid file at their web interface, and then
Justin:it quotes the project for the client.
Justin:And then it also sends it once they accept out to producers, which are
Justin:largely not their company ID, you know, it, you would imagine it's constantly
Justin:evolving to meet the price, you know, keeping the price low for the client, but
Justin:then keep, you know, making the people that make the parts happy, which I've
Justin:actually been on both sides a little bit.
Justin:And it's very interesting to see.
Justin:What goes in one side and comes out the other from the producer side and
Justin:we've, we've done the same thing.
Justin:I've always been really fascinated and found valuable to time track.
Justin:And, you know, everybody that does the time-tracking is screw this, you
Justin:know, like, what are we doing this for?
Justin:How much time do you want me to spend on time tracking?
Justin:This is the best question of that.
Justin:And I'm always like as little as possible, but don't do it, you know?
Justin:Since probably when we chose to do more product development stuff,
Justin:we've kind of curtailed time-tracking and I feel weird about it.
Justin:I feel really weird.
Justin:Like, what are we missing here?
Justin:Because I know it was helping me to make better quotes because we get
Justin:to the end of the day and I go, oh my God, we went over by 30, 40, 50%.
Justin:If we have a job like that again, if you can catch it.
Justin:Yeah.
Justin:Quoting it.
Justin:We need to make sure and cover ourselves because otherwise, you
Justin:know, I, I just imagined that's the one way you go out of business
Justin:quick is, oh yeah, don't do those.
Justin:They don't track time.
Justin:And that way you track it for like, who's getting paid, what, you know,
Justin:salary like hourly wages or something.
Justin:Yeah.
Justin:The question of
Jem:the sort of employee question of like, why are we doing this?
Jem:So like, why are we spending so much time tracking out time?
Jem:And it's an interesting one.
Jem:And I think.
Jem:Yeah, it's an ongoing conversation and we're trying to keep the system
Jem:as lean as possible at the same time accurate and something that's helped
Jem:us, I think is pretty, we pretty much run open book management now.
Jem:So like the company's finances, uh, on the table and in discussion
Jem:every week, I think that's helped to sort of communicate why.
Jem:Yeah, for sure.
Jem:Yeah.
Jem:And it's a tricky balance because you don't want to scare scape people
Jem:or make someone sort of feel this empowered by saying, oh, you know,
Jem:we lost another 30 grand last month.
Jem:And like someone who's just coming to work might be like, whoa, what,
Jem:how, like, what can I do about that?
Jem:You know, how can I feel any sense of responsibility or even just.
Jem:Uh, feeling powered to make any difference.
Jem:Um, but yeah, it's a tricky balance, but I think for the most part sort of
Jem:running pretty much open book has meant that that conversation has gotten easier
Jem:about like why we track times like wisely and what those reports are for.
Justin:Yeah.
Justin:I've always been pretty open about that stuff as well.
Justin:Never to the point of like, here's something you can go dig this.
Justin:And that's honestly not for the fact of like, I'm afraid for the,
Justin:for people to see that it's mostly like, kind of challenging to
Justin:present it that way, by the way.
Justin:So the curiosity I have in saying that is it's like use
Justin:zero accounting, like ex CRO.
Justin:Yeah.
Justin:I've used that forever to it.
Justin:And as far as I could tell, it's like, you basically have to give certain
Justin:levels of, of user access then.
Justin:Is that the way you keep it open or you just discuss it in meetings at a certain.
Jem:Yeah, it's more that, you know, some people obviously have different
Jem:levels of zero access depending on their role, but it's more across the team.
Jem:It's more than an open discussion.
Jem:And, you know, the monthly financials might go up on the whiteboard in terms
Jem:of proper and basic profit and loss.
Jem:So we look at, in our report to NCR project report data every week,
Jem:and you know, where our billable percentages are as a team and sort
Jem:of actively trying to improve that.
Justin:Interesting.
Justin:This is naturally leading into, I always have bigger aspirations
Justin:than the company is currently because it's two people right now.
Justin:This is hilarious.
Justin:But I even at that point, I've always had this thought of getting some
Justin:of this feeling of having worked.
Justin:Other places I've always wanted to have something like profit sharing.
Justin:I mean, that assumes prof profit in the first place.
Justin:Yeah.
Justin:That'd be nice profit sharing because I think.
Justin:I want to always do the best thing for, you know, people that work here and
Justin:it's not like I'm, you know, getting rich on any of this situation anyway.
Justin:And I just think it's a really great way to give incentive
Justin:for people to be invested.
Justin:I think a lot of the times people are here.
Justin:I've a really good luck that people are very invested in
Justin:wanting to do the best thing.
Justin:And I'm pretty open about financials.
Justin:But to me, that's like the last step is.
Justin:I think a lot of people are in jobs are driven by money.
Justin:So it's like, what's how do I make this business make more money
Justin:so I can make money, you know?
Justin:Yeah,
Jem:yeah, yeah, totally.
Jem:That's something I'd love to learn more about too.
Jem:It's an idea of sort of toyed with, but I've never sort of gone deep
Jem:on research about ways to do that.
Jem:Effectively.
Jem:Same sort of uninformed.
Jem:Friction point that I rub up against pretty quickly.
Jem:It's like, how do you do that?
Jem:But not create a competitive workplace to be sort of a team attain wide push to be
Jem:effective and efficient and profitable.
Jem:Um, if you sort of break it down to a single operator level is like, I imagine,
Jem:and maybe this is not a thing, but I imagine you could potentially create.
Justin:Uh, competitive
Jem:environment in sound competition can be good, but you know, there's addition
Jem:as well, but yeah, in show it, I'd love to learn more about it and say, yeah,
Justin:I know.
Justin:Yeah.
Justin:Oh, there are companies that do not personally, but that's
Justin:part of, I think part of it is I think, I just think it'd be great.
Justin:I think.
Justin:And we create more unity.
Justin:And I guess I hadn't thought about it in a competitive sense.
Justin:My very novice look at it would be that from not having any understanding, really
Justin:at this point, it would be like, it's the same, maybe across the board or in
Justin:some level, or of like your seat, your, your time with the company or something.
Justin:I'm not sure, but yeah, definitely interested if you
Justin:have more thoughts at some point.
Justin:Yeah.
Jem:Well, it sounds good.
Jem:Afternoon.
Justin:Afternoon is man.
Justin:I think I was telling you before I've, we've got this new to us mill
Justin:since last summer and we've used it.
Justin:Okay.
Justin:Amount.
Justin:It's been mostly like prototypes and we've upgraded like our router with it,
Justin:but it has this one major drawback to it.
Justin:That's for my experience and the people are.
Justin:It has 512 kilobytes of memory internally.
Justin:And that is like one decent fusion file.
Justin:And it is so challenging for me.
Justin:And I know that people have been using these things for a long
Justin:time and figuring this out, but the, I need to get that working.
Justin:We have a job to do on it, and I found this system where
Justin:you can use a compact flash.
Justin:You put a bin file, which is like a windows kind of like storage volume on it.
Justin:And that the fan of controller can look at that and then run it like internal
Justin:memory rather than external, because otherwise you have to tape run it.
Justin:And it's like this whole thing with you.
Justin:Can't restart the files.
Justin:So it has to start over and it's just, it's just cumbersome, honestly.
Justin:No.
Justin:Well, so I'm still that's high on my list to figure out how the heck that thing
Justin:works better in how we make it profitable.
Justin:And it looks, it looks like a new Ishmael, a contemporary machine it's 2015.
Justin:Okay.
Justin:But it was a local client of ours that basically bought it for one
Justin:job to expedite some processes that they were trying to run.
Justin:And then.
Justin:They didn't run it for more than about six months or they just sat there.
Justin:So it has, it had less than 300 hours on it when we got it.
Justin:Yeah.
Justin:Wow.
Justin:So it's basically new.
Justin:Yeah.
Justin:Yeah.
Jem:Very jealous.
Jem:I can't believe you'd go to the mail.
Justin:Cool.
Justin:Well, I do.
Justin:And no memory.
Justin:Yeah.
Justin:It's kind of brain dead to some degree.
Justin:It's mostly me not knowing how to, how to utilize it the best as we could.
Justin:So what about you?
Justin:Uh, what's on for
Jem:today?
Jem:I've got.
Jem:Little prototypes, prototyping, design development jobs to finish
Jem:our, or get drawings to people for.
Jem:But for the most part, I've got sort of business development
Jem:tasks on the list today.
Jem:Got a dig through.
Jem:Um, we do like a, a quarterly walk.
Jem:One-on-one walk with everyone on the team.
Jem:So we've got, I think, eight people on the team at the moment and every three months.
Jem:We do it one-on-one together where we just go and walk around the block or go and
Jem:sit in the park for now and have a chat.
Jem:Um, and we did that probably a few weeks ago now, and I still
Jem:haven't sort of gone through all my nights and written my action items.
Jem:Ah, yeah, that's on my list of things to do today.
Jem:And what's cool.
Jem:If I have time, we're rebuilding our Shopify theme at the moment and I need to.
Jem:Getting into that and just start populating the new build with some
Jem:fresh photography and coffee and stuff.
Jem:So that's fun.
Jem:See how we go.
Jem:Cool.
Justin:Now.
Justin:Yeah, it was good to chat.
Justin:We'll have to catch up on your new microphone stand next time.
Justin:And your pencil sharpener.
Jem:It's currently typed completely typed up with electrical tape.
Justin:The one that you made on the sharpener.
Justin:That's all right.
Jem:I'll send you a photo.
Jem:Because the sound caught in this pace, so it's not actually
Jem:working, then we'll get that.
Jem:We'll get that.
Jem:That's pretty good.
Jem:MacBook pro and
Justin:yes, then I'll be testing for next time.
Justin:Mack, Mack, the pencil sharpener and something else.
Justin:Anyway.
Justin:That's good.
Justin:It's good to chat, man.
Justin:Yeah.
Justin:Yeah.