Deciphering Operational Costs: Strategies for Determining Operational Costs | Joey Golliver

Join Joey Golliver, the world-renowned powder coating expert and author of “The Powder Coach’s Playbook,” as he explains how to determine operational costs in powder coating in this insightful video.

Understanding and Managing Operational Costs in Powder Coating

Introduction: In this comprehensive discussion, Joey Golliver shares strategies and techniques for calculating and analyzing operational costs associated with powder coating operations.

Key Cost Factors to Consider:

  1. Materials:
    • Powder Coatings: Track the cost per unit of powder used and consider bulk purchasing to reduce costs.
    • Pre-treatment Chemicals: Include costs for cleaning agents, degreasers, and any other pre-treatment materials.
  2. Labor:
    • Wages and Benefits: Calculate the total cost of employees, including wages, benefits, and taxes.
    • Training and Development: Include costs for ongoing training and certification for your workforce.
  3. Equipment Maintenance:
    • Routine Maintenance: Regular servicing of powder coating equipment to prevent breakdowns.
    • Repairs and Replacements: Budget for potential equipment failures and necessary replacements.
  4. Energy Consumption:
    • Electricity and Gas: Track the energy consumption of your curing ovens, spray booths, and other equipment.
    • Energy Efficiency Measures: Consider investing in energy-efficient equipment to reduce long-term costs.
  5. Overhead Expenses:
    • Rent or Mortgage: Include costs for the space where your operations are conducted.
    • Utilities: Track costs for water, heating, cooling, and other utilities necessary for operation.
    • Insurance and Permits: Ensure you account for all necessary business insurance and regulatory permits.

Strategies for Effective Cost Management:

  1. Cost Tracking and Analysis:
    • Detailed Record Keeping: Maintain detailed records of all expenses to identify cost-saving opportunities.
    • Regular Audits: Conduct regular audits to ensure accuracy in your cost tracking and identify any discrepancies.
  2. Budgeting:
    • Monthly and Annual Budgets: Create and stick to monthly and annual budgets to control spending.
    • Contingency Planning: Set aside a portion of your budget for unexpected expenses.
  3. Optimizing Processes:
    • Lean Manufacturing Techniques: Implement lean manufacturing techniques to reduce waste and improve efficiency.
    • Automation: Consider automating repetitive tasks to save on labor costs and improve consistency.
  4. Negotiating with Suppliers:
    • Bulk Purchasing: Negotiate with suppliers for bulk purchasing discounts on materials.
    • Long-Term Contracts: Secure long-term contracts to lock in prices and ensure a stable supply.

Conclusion: Don’t let operational costs remain a mystery! Hit play now to gain expert guidance from Joey Golliver and learn valuable strategies for determining and managing operational costs in powder coating. Watch the video here. Like, subscribe, and share to support the channel and empower others with essential powder coating knowledge. Let’s make informed decisions and achieve financial success in powder coating operations together!

By following Joey Golliver’s expert advice on understanding and managing operational costs, you’ll be better equipped to plan, budget, and optimize your powder coating business. Embrace these strategies to gain a clear understanding of your costs and drive profitability in your operations.

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