Why change? Prior to starting modbox in 2014, I valued privately held businesses. Yes, I was a business appraiser! Generally, when a business had 50% or more of their sales to one customer, I would account for the possible RISK of losing the customer(s) by increasing the discount rate used to present value the future cash flows. Thus, the business’ value is lower.
I was aware that our current fabricator Hi-Tech had perhaps 50% or more of their sales to one customer. Reality struck in July 2017. Hi-Tech’s large customer stopped ordering a couple months prior, and Hi-Tech was closing! I later found out that perhaps 70% or more of their sales were to one customer.
The scramble was on. Now MY business was at risk too! I immediately reached out to two fabricators, sent them the CAD files, and waited for quotes. About 30 days later, each said they would/could fabricate the curbside mailbox, but were not willing to take on the two-tone powder coating. A second round of quotes resulted in the same.
With inventory low, the pressure was on. I called Precision Machine Fabrication (PMF), and spoke with Don Turner. Don asked, “When can you meet?” I replied now! After looking at a completed modbox and giving me a tour of the facility, Don looked me in the eye, and as he shook my hand, said he could help me out and PMF would fabricate and powder coat the curbside mailbox. PMF completed the second fabrication run earlier this year. Yes, they are “Sheet Metal Experts,” but PMF was also quick to help a business that was in need. Thank you PMF!