Chapter 20: Acceleration

Things seemed to move at warp speed over the next six months. Georgette and I were finally married in Coeur d'Alene in early September and spent an abbreviated honeymoon on an island in the San Juans in northwest Washington. We allowed ourselves to forget about Smithton PWTS for a few days and enjoy the scenery and wildlife. We had perfect weather and it was the getaway both of us needed.

It took very little discussion to decide to lease the former candy packaging plant in Union City. It was clean, spacious, had excellent offices and was in a great location. It had also been empty for over a year and Thomas and Devon had skillfully negotiated a five year lease with an option that would keep our overhead at a reasonable level.

Kevin and I had begun to plan the layout of the assembly area, detailing what construction would be necessary to isolate the welding area from the general population. We had the space to keep it well away from any potential hazard and provide proper ventilation. Material storage would be racked and still take up half the floor space available. When full production was achieved we would know our capacity and it would determine our future in the building.

Kevin, Georgette and I were commuting to Union City almost everyday. He was interviewing candidates for our welding shop. Qualified welders were in short supply and it was going to be a costly part of our labor bill.

"There are a couple of possible solutions," Kevin began as we sat around our makeshift lunch table in the office area. "We could farm the welding out to another company. I'm not real pleased with that option. We need high quality workmanship and we need to be their first priority for delivery and not an afterthought.

"The second option is to keep looking for qualified welders and hire as they become available. My concern with that plan is how long it might take to get a full complement. It might mean we fall behind in production and therefore behind on deliveries. That could be fatal for a new company.

"The third option is to hire two or three top-notch welders and have them teach a group of apprentices on the standards we have to have. Again, that could be a slow process, but we would end up with what we need.

"The fourth and only other option I'm almost afraid to suggest. We go the way of a larger, more sophisticated operation and put in a robotic system."

"What's that cost?" was my immediate reaction.

"I have no idea," Kevin admitted. "I know they are a lot cheaper than they used to be and we don't really need an exotic one for the type of welding we need. The usual formula for the smaller units is that they can do the work of five men without taking any breaks and they can process more work per hour than six men."

"Five top quality welders would earn sixty or seventy thousand a year each, plus benefits," Kevin said. "That gives us a budget of three to four hundred thousand for a one-year payout for each five guys."

"On the surface of it, it makes a lot of sense if the initial cost isn't too crazy," I said.

"Well, we haven't considered maintenance and backup if something goes wrong," Thomas offered. "I assume these units are programmable?"

"Yes. Why don't I do some investigating and see what the possibilities are. I'll get some costs and we can sit down make a decision. In the meantime, I'll continue looking for qualified welders. That will at least get us started. We need to get some additional prototypes out in field testing."

--"Okay, Kevin," I said. "Go ahead. If you need some help, let me know. The more I think about it, the more I like the robotic idea. If you're right, we might have a cost-effective solution."

Georgette's sorority sister was now employed by a small up-and-coming marketing company that was working hard to develop a client base. Annie Lieberman met with me, Georgette and Thomas to discuss what her company could do for us.

"You're absolutely right, you need a product name that can be featured in any type of promotion. It isn't a riding lawnmower or an ATV that could capture a certain segment of the public's imagination. This is a piece of machinery that performs an important function and its promotion has to emphasize that. The name should also be serious."

"How do you see this product being marketed?" I asked.

"For industrial contacts, you're best to begin with a large buying group. They service retail outlets nationally and can give you the widest distribution. But even there, you need brand recognition and public awareness. My thought is a combined television and magazine advertising campaign. The TV ads get people's attention and tell them what the product does. It introduces the brand name to them. The magazines are a follow-up reminder directed at the specific consumers that might need this product."

"That sounds expensive," I said. "We're a start-up company. We don't have a big budget for that type of campaign."

"I understand," Annie said, nodding. "I'm not suggesting a saturation campaign on network television. I'm thinking more of carefully selected spots on the specialty channels. They are a lot less costly and can be directed more accurately at your target audience. Same with the magazine advertising."

"What kind of budget would we need?" Thomas asked.

"I haven't worked that out yet, but I will give it some thought when I go over the product with you and determine who would buy this product. Why don't you tell me who you see as your domestic customers, John."

I proceeded to tell her about the genesis of our machine and how I envisioned it being used. Annie was listening carefully to me, occasionally glancing at Georgette as I spoke.

"You tell that story very well," she said as I finished my comments. "I see you and possibly Georgette too as the spokespersons for this product. You are an attractive man and you are well spoken. It's your product and you know it best. You see it as an 'All-American' machine and that's a great selling point these days."