Are Machine Shops Getting Jobs Through Online Platforms? | Machine Shop Talk Ep. 107
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- Опубликовано: 12 мар 2024
- It seems like companies are trying to become the Uber of their respective industry everywhere today, and the machining industry is no exception. When it comes to selecting an online job platform - there are a lot of opportunities to be had, but also some areas where you should tread carefully.
In this episode of MACHINE SHOP TALK, Ian Sandusky from Lakewood Machine & Tool is back to speak to his own experiences with these online platforms, and to-- put a finger on the pulse of what the forum thinks about them in 2024.
Have YOU used these online platforms? Do you think they’re still worthwhile, or whether they should have been left in 2023? Let us know in the comments below!
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We use one of these platforms. It has been a great revenue source. That said, I agree with all of the cautions that were mentioned. We had a job before us would have buried us in work for a couple of months but also would not have paid what it was worth.
We like the fact that jobs are presented with all the necessary details. Some jobs are not worth considering but some are. You develop a rapid assessment of the pain points on any particular job and proceed accordingly. If a job is not priced right, you can present a counter offer.
These platforms have their place but proceed with caution. However, this can be said with any customer.
Agree with you completely. I think the real danger is much like putting all of your eggs in one basket with one customer, devoting *too much* of your shop's energy and revenue dependence on any one single outside source. Thanks for watching!
I used to do work for Xometry several years ago before covid. I shipped parts directly to the customer after doing their ridiculous virtual QC process where you had to send them like 40 pictures of a part that's only $200. NOT WORTH IT. I quit.
I have my own ideas so I wont get too into detail but mobile, onsite machining combined with welding is where the money will be at for a guy or two trying to start his own machining business. Obviously I'd also want a nice big heavy duty lathe and a prototrak mill, but I gotta start small.
In 08 when the bottom fell out I looked into MFG. Sales guy was like “It’s $6K/year and if you don’t get any work you can just write it off”. I was like dude I haven’t cut a chip in a month, I can’t afford to just write something off.
Wow was it that much then?! I'd be curious to know what it goes for now, that's crazy though.
@iansandusky417 it was the same a couple years back when I tried it.
A write off just means you don't pay taxes on it because it's not profit but an expense, it still costs you the majority of money you paid! Never listen to a sales guy, turn the tables and ask if they are so confident that you will get work from it if they will give a guarantee that if you don't get work after a specified period of time that you will get your money back!
One thing about working for these companies is having a machine that runs fast like a 4x4 plate with 4 hole in it . If you want to compete 1:50 cycle time . That’s 4 holes fly cut and a perimeter cut no messing around . Also cell automation and a server to place jobs on que. pre finished blank stock . If you don’t have any of these. You will get eaten alive by people like me who live for this kinda work. Full throttle it’s fill work . There is no money. In it really for as hard as you need to run machines . To make a buck or two .
This video provided great insights into the pros and cons of using online job platforms for machine shops. I appreciate the emphasis on the importance of researching and choosing the right platform.
I'm curious though, what other platforms or resources would you recommend for a startup shop looking to diversify its customer base? Any specific strategies or lesser-known platforms worth exploring?
Thanks in advance for any recommendations!
Hands down, Linkedin.
I currently work at a small shop and HUBS kicked us out of their system for not winning a job from them within a time frame (I guess too picky) 🤷♂️
We are an enduser doing alot of prototyping for our own product development. We have some facilities in house, but they are sometimes/ often not enough. We have tried these platforms a few times, but its a bit of hassle explaining and iterating with different people, and then the markup on top, make it most suitable for small simple medium volume parts. For us, doing prototyping its too expensive time/money.
I used MFG back in the day on the premise that I could eventually go through the back door for futures. While, I did pick-up "A" repeat customer, others I had to remind that I am still available with QTA. They advertised that my package, were parts that were to stay in the US, but I low balled like crazy on many jobs just to get in the door. Still didn't get response. Personally, I think the jobs were either false or did in fact leave US soil. I actually broke even on the year for dues and cut my ties.
I will not pay for the service as they have no reason to supply proper leads since they are already have your $ . The MFG model my experience with them was not good .
I have no experience with them personally, but any kind of agreement where it's a paid subscription model prior to getting leads / jobs would raise my hackles as well.
Had a similar experience with mfg, canceled after 1 month
Great minds think alike! We also covered our experience with these platforms in our upcoming episode of BAPM.
😎
What's BAPM?
@@daleemmons36Becoming a Practical Machinist - Milspec Manufacturing's excellent series here on PM!
I'm considering using an online platform this summer when I try to start my shop just so I can get a revenue going tell I build up a customer base. The only one I've heard of was Xometry and all their ads about a home garage machine shop from a few years ago disappeared, so I don't know about that option anymore.
I'm on that same path too this year. But the one thing that has me hesitant is that the you and the customer have some sort of contract were you can't work directly with each other outside of xometry even if it is on different parts. I'm too sure the full extent of that, but it's something along the lines like a hiring agency for general laborers.
Hello Ian. I thought your take on all this was accurate and very informative. I have used One of the online platforms when I am slow mainly as additional income. I have found that the pricing in my opinion is usually very unrealistic and the poor guy (producer) is basically just getting Hammered. But, sometimes you need to be busy to keep your moral up and in some ways that helps me get through until better times come. Great video, and Oh BTW, I am not Canadian but I think the Canadian accent is pretty cool! It makes You Canadian!!!!!!
Fair enough, that’s most definitely the route I would take with them as well if there were more of them available up here in Canada - sounds like a great way to use available spindle time when it’s convenient! Thank you very much for checking it out!
Maybe have 10%-15% of your jobs using this services, but I don't see it as a sustainable business model.
Oh yeah, there are definitely times when I WISHED I could just log on and grab a job - even not the best paying - off of a site like these, especially during slow times and machines are sitting.
I am trying to sign up for xometry. The waiting is very long for them to review. Do you have a list of such companies? Thanks bro
Thanks for the heads up on xometry timelines for reviewing. Finding out information on them without getting an account has proved rather difficult. Unfortunately I've only ever heard of xometry, but I'll be keeping my eyes open for online options. I hope you have better luck than I do. 👍
As there's only one I've found that you can use in Canada (the one I had experience with) - I'm unfortunately not the best resource for that - I'm sure there's a list in the PM forums though! Worth checking out! Thanks for watching!
I'm making the test part for xometry right now. It's a new one and I failed the 1st one. It's a pretty difficult part. 16ra etc.
They're doing you a favor lol.
I recently came across the Xometry platform. As a customer I must say it's pretty neat to get a quote online fast and easy like that, just uploading the files. In my case I am looking to have some laser cut parts, just a small quantity for prototype products, and I'm trying Xometry. I know of a company locally that do relative small orders, but my order now is pretty small and I do not want to bother the company with giving a price for such a small job, but better contact them for a quote when I'm ready for a higher quantity order.
You said there’s a lot of different similar platforms? Could you name the best ones?
Thanks for checking it out! For the sake of not steering anyone in any one direction (as I don't use any of these myself these days) - I'm going to hold off on naming any. Sorry bro! Lots come up on Google with the right keywords though!
The still shot on this video showed the Protolabs logo. I thought they do everything in-house?
protolabs subs work out but they will fuck you over for any thing they can. Be ready to play lawyer with this company
what platform can i sign up for as a Canadian based Machine shop?
I would like to know, too. Did you find out if Xometry works in Canada?
👍
He said "an engineer with no machining experience" lol
Most engineers have no machining experience!
Может тоже в похожей деятельности поучаствовать? Хм-хм
Maybe I missed something, I don’t think you explained anything that shops don’t see with direct customers
Most of these platforms make you pay an outrageous subscription fee to be apart of their network.
Xometry doesn't charge anything. They are the only platform I've used that seems legit.
@@joshualegault1095 correct. That is why I said most, not all. MFG, for example, does.
spend your time cleaning your machines instead. any other use of your time will be more profitable for you
Both MFG & Xometry suck
at least xometry is free
Why?
Please elaborate
Because youre prob a union boomer who thinks charging $999999 shop rate is great and dont like competition…dust bin of history with your ilk!
@@PepeNuclearso how much do you make shop rate on these sites?
No thank you - not like it is in this day.
Mfg blows. Lots of people use it for benchmarking
It's exploitation