MEGA-WORKSHOP 2010

[Michael Reis-Stone World]

Hello All:

I just got back from the Vitoria Stone Fair in Brazil and it was a very good show. It was relatively busy, and the Americans there (mostly distributors as opposed to fabricators) seemed to be doing business as opposed to browsing. Lots of meetings taking place with a calculator being worked at the table.

In checking out the stone materials on display, it seemed that there were more exotics than ever. The general consensus among suppliers and buyers was that by investing in exotics, companies will be able to separate themselves from the competition, and they will be less likely to be beaten down on the basis of price.

My questions are:
Does this theory make sense to you? How much are you working with exotic materials now as compared to the last year or two years? Are people willing to pay the extra money for these materials, or are they still trying to save a few bucks per foot?

Second, as a fabricator, how much of a hassle is it working with these exotics? I saw the "Working with Fragile Materials" hands-on demo at an SFA Workshop, and a lot goes into it. Is the financial return generally worth it?

Thanks, in advance, to everyone for your replies. Please note that this will become part of an article for Stone World in an upcoming issue.

[Dan R.]

Exotics are certainly a good share of the product mix these days and growing. Along with the higher price, fragility there is also the fact that it takes more raw footage to make a job look good by seam matching the grain. This means more waste, thus even higher costs. The key is to understand your costs and charge accordingly. The exotics sell themselves, but they cn mean losing money on a job gone bad.

[JMarcella]

We stock a large amount of slabs in our warehouse. Exotic stone comprises about 50% of the overall product mix we carry. People seem to want something new that they have not seen in a big box store.
For the fabricator, working with exotic stone can be tricky. Grain matching becomes more critical, which usually translates into more waste. Many of these materials are often very fragile, which adds to the fabrication timeline. Some materials, as beautiful as they are, contain more surface traits that homeowners may find objectionable. These same consumers generally believe that the higher cost of the stone, the higher the overall quality of the raw material. This is rarely the case.
For us, the key to working with exotics is to make sure to bring in ample stock. That way we can recycle the matching remnants back into the future jobs more economically, thus off setting the higher waste factors. This is not possible if you only bring in enough slabs for each individual project.

[dustinbraudway]

Having a good mix of Exotic and Staples is great for any fabricators yard. That said, when bringing in exotics you need to look at your historical exotic colors that tend to sell in your area. A fabricator does not want to be bringing exotics that won't sell in their market. When starting out selling the exotics get a container of the historical sellers, and then throw in a bundle or two of some new exotics for your market.

When importing and selling exotics or staples your sells force needs to be able to move these materials. You don't want a bunch of coin sitting out in inventory with nobody buying it. Introduce a new color here and there and build your selection. There is also a mindset right now in the industry that bringing in cheaper commerical grade material exotics is a good practice; as to where a fabricator can sell at the same price or just a bit above staple colors such as a group two color range. They feel this gives them a little more leverage over their competition. It will if the customer is looking for an exotic, but 9 times out of 10 if they want the Uba tuba look, they want what they want. So importing cheap exotics to sell against Uba tuba is in my opionion a silly and a good way to devalue the price of the exotic market. Learn to sell better!

Right now I would say that in this market we are seeing a good mix of exotic to staple ratio. We get paid more for exotics because typically the material cost more, the stone can be sometimes harder to work with in handeling, the grain match must be taken into count more and layout is the most important. With exotics your yeild is less because professional companies and craftsman understand that grain flow and color match is the most important thing. This should also always be explained to the customer and they should in return buy enough material to make this happen. Does it always work out like this "no"!

Does working with exotics make the risk versus reward worth it? I think so. Not only do I charge accordingly, but I also get a warm fuzzy feeling when we make killer tricked out vien layouts match up and it looks like a piece of art.

[mikedean]

Exotics set you apart from the local competition. Having something for your customer that their neighbour doesn't have makes them sign the contract right there. We've moved to more exotics in the past two years and kept our existing stock of staple colours the same. Our number one and two sellers were exotics last year. The trick is volume. Get as much of one block as you can to save on the waste. This is a simple concept, but remember that there is much more waste with grained exotics. Also, ensure the customer is educated on the fact that if you must seam, you are putting two pieces of nature together.

[azstoneconsulting]

Depending on where a Fabricator is located (right now anyways) will also have an impact on what amount
of the "Exotic" slab market he will be involved in. Presently, IMHO - the "four black holes" in the US are (unfortunately) Southern California, Las Vegas, Arizona and South Florida - just the exact opposite of 5 years ago. I am in Arizona and can tell you that here - the exotic market - although alive - is not anywhere near what it is in other parts of the US. I know that Arizona Tile has done a tremendous job promoting Exotics here in Arizona, and though their efforts - not only here, but in other parts of the country as well - they are creating a "niche" market segment that Fabricators that have the skills to work with exotics successfully - can fill.

Guys that DO have the opportunity to work with the exotic slabs had better keep track of EVERY dimension and detail of the job from start to finish - and as others have said - ANY mistake YOU make or ALLOW to happen is AMPLIFIED ten times over due to the enormous cost of the slab - and the potential for replacing it - if somebody in your production chain "forgets to carry a 1" and gives you cause not only for buying a replacement slab, but also introducing the offending employee to the wonderful world of "entering the new job search" arena.

If you have confidence in your staff, and your local market will bear it - working with exotics is DEFINITELY a part of our Industry that you as a Fabricator need to consider doing if you are not already. Just remember that "the view can be really great up there" - but you are still "on the tight rope - way up high" - Until the job is done and PAID for!