Originally Posted by Rastnav (Post 3731603)

I'm sure you would not expect the plastic manufacturers and the employees to work for free. Nor would you want them to stiff Jomez and DGN what they owe them for advertising, renege on their outstanding loan payments, not pay the lease on any locations they do not own, nor fail to pay any of the other myriad of expenditures required for their ongoing operations. In order to make the next batch of discs they have to plan for appropriate cash flow in order to pay for the resources. That’s the way you need to think about that money that’s “in the bank”, it’s mostly going to pay for the discs they just shipped or the next batch of discs they will manufacture (i.e. the bills they have coming due for all of those things). Absent taking care of all that, the new machine wouldn’t ever actually make anything.

The net revenue from any batch of disc sales is not the same as what they have free to spend on new capital expenditures. And we don’t even know that $300K is enough to fully pay for everything that would go into adding another production line. Manufacturing can be extremely expensive, as we’ve seen with the discussion of the mold prices.

And then there is the question of how selling out a single batch of discs that they surely counted on selling out would somehow change their calculations for what kind of manufacturing capacity is optimal for them going forward. They have (almost certainly) planned this acquisition of manufacturing capacity, and any subsequent improvements and increases carefully. It may be that they are currently sourcing more equipment, but that’s likely money already spent (from a budgeting perspective), based on forecast demand. In order to bring any new capacity on line in the near term, they’d already need to be well down the road on it, having ordered the build of the equipment, planned for the appropriate space, considered how installation and new employee training would impact ongoing manufacturing, etc. If their demand forecast supports adding more machines, they should already have it in the works.

Finally, obtaining enough current manufacturing capacity to rapidly address pent up demand isn’t likely to be a sound strategy. A large chunk of the current demand is a temporary spike based on building out enough capacity to satisfy temporary demand just leaves you with idle capacity in the future. Every disc manufacturer is currently facing this same conundrum, wondering if the COVID spike will last; it’s even more important for DM to navigate this successfully, as they have had surprised capacity versus demand even before COVID hit. Their plans depend on making enough discs fast enough to pay down the excess demand fast enough to retain customers, while leaving themselves in a good position when they get back to baseline demand. And that should be based on their projections, not one successful sale of a run if discs.

Originally Posted by soothsayer (Post 3731629)

TL;DR?

Originally Posted by Rastnav (Post 3731603)

I'm sure you would not expect the plastic manufacturers and the employees to work for free. Nor would you want them to stiff Jomez and DGN what they owe them for advertising, renege on their outstanding loan payments, not pay the lease on any locations they do not own, nor fail to pay any of the other myriad of expenditures required for their ongoing operations. In order to make the next batch of discs they have to plan for appropriate cash flow in order to pay for the resources. That’s the way you need to think about that money that’s “in the bank”, it’s mostly going to pay for the discs they just shipped or the next batch of discs they will manufacture (i.e. the bills they have coming due for all of those things). Absent taking care of all that, the new machine wouldn’t ever actually make anything.

The net revenue from any batch of disc sales is not the same as what they have free to spend on new capital expenditures. And we don’t even know that $300K is enough to fully pay for everything that would go into adding another production line. Manufacturing can be extremely expensive, as we’ve seen with the discussion of the mold prices.

And then there is the question of how selling out a single batch of discs that they surely counted on selling out would somehow change their calculations for what kind of manufacturing capacity is optimal for them going forward. They have (almost certainly) planned this acquisition of manufacturing capacity, and any subsequent improvements and increases carefully. It may be that they are currently sourcing more equipment, but that’s likely money already spent (from a budgeting perspective), based on forecast demand. In order to bring any new capacity on line in the near term, they’d already need to be well down the road on it, having ordered the build of the equipment, planned for the appropriate space, considered how installation and new employee training would impact ongoing manufacturing, etc. If their demand forecast supports adding more machines, they should already have it in the works.

Finally, obtaining enough current manufacturing capacity to rapidly address pent up demand isn’t likely to be a sound strategy. A large chunk of the current demand is a temporary spike based on building out enough capacity to satisfy temporary demand just leaves you with idle capacity in the future. Every disc manufacturer is currently facing this same conundrum, wondering if the COVID spike will last; it’s even more important for DM to navigate this successfully, as they have had surprised capacity versus demand even before COVID hit. Their plans depend on making enough discs fast enough to pay down the excess demand fast enough to retain customers, while leaving themselves in a good position when they get back to baseline demand. And that should be based on their projections, not one successful sale of a run if discs.

Originally Posted by ray1970 (Post 3731420)

Obviously I wouldn’t expect it any time soon but I would eventually love to see some P3X’s. Not sure if they’re big enough sellers for Discmania but they’ve always been high on my list of favorite putters off the tee. They’ll handle a strong shot off the tee with a reliable finish but aren’t as beefy as something like a Zone or Harp.

Originally Posted by soothsayer (Post 3731504)

Not sure if Innova really cares though, they're about to drop a crap ton of Sexton Firebirds and those will sell out instantly.

Originally Posted by ray1970 (Post 3731420)

Obviously I wouldn’t expect it any time soon but I would eventually love to see some P3X’s. Not sure if they’re big enough sellers for Discmania but they’ve always been high on my list of favorite putters off the tee. They’ll handle a strong shot off the tee with a reliable finish but aren’t as beefy as something like a Zone or Harp.

Originally Posted by soothsayer (Post 3731440)

Hey Discmania person:

How long till I can get my hands on a Mutant? My Eagle Splice is getting here today :) All I need is the Mutant and my OS slots will be taken care of!

Originally Posted by Discmania_Support (Post 3731806)

It's tough to say with certainty that it'll come back but also with certainty, it hasn't been planned to remove from production either. These molds will begin to emerge little by little and eventually we'll be back to the collection of discs that everyone knows and loves. 2022 will bring a few more in addition to these five this year and we'll just keep cranking away.