[Jewelry making - Article 00291] - Re: [Orchid] CAD/CAM Oversupply?

[Wayne Emery]

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Les,

    I've been involved in Cad and Cam for about seven years, first as a
    Rhino user when it was still in BETA, then SolidWorks, then Matrix
    as a Beta tester and user, also as Sales Manager for Gemvision Corp
    for two years, owner of Matrix and a Revo Mill. I bought the very
    first Revo. Many jewelers partially justify the purchase of a milling
    machine by thinking they can take in outside "work" to offset the
    cost. Most find that dealing with the details of the "outside work"
    can be frustrating and time-consuming, not necessarily profitable.
    Best advise is to formulate a business plan and a business model and
    stick with it. If you do custom work, the mill on premises will
    enable you to do more work, better and faster. You will soon find
    the "outside work" an irritant and an interruption to your regular
    work. I've seen it over and over and over. 

    The up-side is that you will get busier as customers learn about
    your new-found expertise and the great things you can do with it.
    You simply won't have time for outside work. 

    There are, of course, quite a few other business models which work.
    Taking in design work, cutting the waxes and casting (or not), and
    finishing (or not), all can be successful. But it is usually a
    mistake to mix business models...you don't have to. Also note that
    one can lease such equipment rather than buying it outright, if cash
    flow seems to be a problem. Your accountant can fill you in on the
    deductible situation, but, if you pay for it outright, you can write
    it off in the year that you buy it. Other deduction methods may be
    advantageous, too. Even in a lease situation, the entire cost of the
    item may be deductible in the year of purchase under certain
    conditions. 

    Another reason that taking in outside work is not a great idea is
    that more and more of the people getting involved in the CAD end are
    moving to the CAM end, limiting your market substantially. I
    predicted this five years ago, and we are seeing it now. 

    Keep in mind that it is possible to create a modeling CAD and
    outsource the milling or growing overseas at low cost, although
    other problems often accomany THAT business model. 

Good luck in your venture,

Wayne
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