We recently connected with Ritchey Robin and have shared our conversation below.
Ritchey, thanks for taking the time to share your stories with us today It’s easy to look at a business or industry as an outsider and assume it’s super profitable – but we’ve seen over and over again in our conversation with folks that most industries have factors that make profitability a challenge. What’s biggest challenge to profitability in your industry?
Currently, with all the events occurring in the US and around the globe, it makes it extremely difficult to calculate an accurate Costs of Goods. And, that makes it difficult to determine an accurate profit for industry. Why? The frequent fluctuations in costs of goods or commodities. And, currently the rapid increase in this. It is a very volatile economy, right now. What one can price at today’s costs, may and probably will increase by the time the job is actually being built. So, when my profit margin was where it needs to be to for a reasonable profit, that can quickly diminish by the time the job starts. This leave you guessing at resolutions to minimize this. That may be: Raise prices today, based on what you see trending the past few weeks or months and hope you don’t out price yourself in the market. But, then you think, other businesses in the same industry will be doing the same. As, a business can only absorb so much loss, before it goes into the red or closes its doors. Unfortunately, by the time a business realizes they have been at a loss, it is too late they cannot, usually, recover. For this reason, we are constantly looking at our books, incoming and outgoing costs, monthly, quarterly, annual financial statements. Keeping up-to-date with reports on costs of materials that we use daily. Staying in contact with our suppliers and getting predicted updates on future costs of goods. All this is to make sure that we, as a company, know where were currently stand financially and where we may be in the future, weeks, months, years. All this is used to determine, hiring new employees, laying off employees, purchasing new equipment, pay increases, etc. All of this is effected by your company’s “GAIN and LOSS.” You have to stay ahead of the game to win. And, “Win” means keeping your business doors open. Get thrown a curve ball, learn from it and hit it next pitch. You will always have curve balls thrown at you, daily. Some don’t hurt so much. Some, will put you out of the game.
As always, we appreciate you sharing your insights and we’ve got a few more questions for you, but before we get to all of that can you take a minute to introduce yourself and give our readers some of your back background and context?
I came from a small Louisiana town. Graduated high school and went to college a couple years. Joined the Army National Guard and went to Combat Engineering School, Ft. Leonard Wood. Graduated at military school and went back to college at University of Louisiana and obtained my Bachelor’s Degree in Legal Studies. Going back in time, while in high school, I was in the Future Farmers of America (FFA). There, I learned how to weld, design, fabricate metal. In 1991 I founded and opened up Gator Pit. A custom BBQ Smoker and Grill shop. Despite my ambition to go to law school in Texas, I decided to go back to what my true passion was: Designing and making custom cookers. Crazy, I know. What everyone said to me. It was not easy starting a BBQ Pit fabrication shop. No one knew me or Gator Pit. I worked two jobs. One that paid the bills. The other was Gator Pit. I would sleep at my shop after working to the early morning hours building cookers, pushing my brand name, etc. Then, go to my “real” job for 10 hours a day to get an actual paycheck. It was hard on me. Hard on my family. But, everyone supported me 100%. My wife, Melissa, was always by me, pushing thru good and bad times. Finally, I got a bit of recognition in the industry and it starting taking off. I told myself, if I make $50,000.00 one month, I am quitting my “real” job. And, one month I did exactly that. I was confident that I could make it in the industry, if Gator Pit had 100% all my attention and not shared with the other job. 2002 was the year I got my 5K square foot building and property, hired welders, and starting really getting my name in the industry. I was everywhere in BBQ. BBQ Competitions and other events that I thought folks would be into BBQ Pits. I pushed my Gator Pit brand everywhere: Cook-offs, Hunting, Fishing, Tailgating events, Cooking Classes, etc. Gator Pit was there 24/7. I pride myself in offering what others don’t. Real Deal BBQ Pits. Meaning, design, quality, function. Today, I personally hand pick my steel materials. I actually go to the steel yards and inspect and select my materials. I do the same with everything else. I look for the best materials, because that is what I have built Gator Pit’s reputation on in this industry. THE VERY BEST. You know you are on top of the game, when you have other BBQ companies calling you and asking you How-To questions. When major TV networks contact and have you on TV shows: History Channel, Discovery Channel (King of the Grill Episode), Destination America. And, when magazines ask you to be in their magazine. When you are at a point, where your brand name and product are known and shipped worldwide. But, with that success, I am still the one you talk to when you call my office. I am still the one you meet, when you visit my facility. I am still the one that conducts the cooking classes. Now, I have to give credit to those around me: Employees, friends, and family. If it weren’t for all of them, Gator Pit would not exist and would have become a dying dream back in the 90’s. I truly believe that anyone can do anything they set their minds to. Whether, a Lawyer or Welder. Believe me, it would have been easier to become a lawyer than start a BBQ fabrication shop. Not insulting my lawyer friends and customers. Point is, starting a business is, well, too hard to explain in a short paragraph. One has to have some smarts, motivations, drive, common sense, family and friends behind them, and the willingness to never stop, when you hit a brick wall. But, to knock it down, bust through it, and keep on stepping no matter how hard you think it is. That first wall prepares you for all the walls you will hit throughout your business years. That drive, determination, motivation, willingness to accept failure and keep moving, is what separates those that quit or fail from those that succeed.
Can you open up about how you funded your business?
I worked a full-time job, when I decided to start my current business. I used that money to kick start my business. Started slow at my house. As the business grew, so did my motivation to quit my job. I moved my home business, to a small warehouse outside my neighborhood. Still working my full-time job, I was working my business as much or more hours. Working nights and sleeping at the warehouse. Business kept growing and I eventually hired one Welder, then another Welder. At a point, the small warehouse was too small for us to work and produce more product. I had to make a decision. A very hard decision. Quit my full-time job and get a bigger facility. Which I did. And, I hired more employees to increase production. It was a slow process over years from home to a 5K square foot building on 1.5 acres give or take. Every penny was accounted for coming in and going out. I only spent what I had to at home and business. But, I invested back into my business with hopes I’d recoup my investment with increase production. It is always a gamble. But, starting any business always a gamble. Playing the game and winning is the hardest for a small business. You will lose some, but you have to win most to stay in the game.
How about pivoting – can you share the story of a time you’ve had to pivot?
I graduated from the University of Louisiana at Monroe in 1989 with a Bachelor’s Degree in Legal Studies. My plan was to go to law school and be a practicing attorney. Not working for a firm, but having my own practice. I moved from Louisiana to start law school in 1990. Two months prior to starting fall of 90, I decided I didn’t care for 3 or more years of school. I landed a nice government job and worked it for years and moved my way up to the top of the agency. Realizing I had nowhere else to grow in position and salary, I decided that the only way to achieve what I really wanted in life at that time, was to work for myself. So, I looked back at my life and asked myself, “What did I really enjoy when working?” I reflected back on my high school years in FFA and welding. Long story short, I had to decide on quitting a career that I was in going on 15 years, coming up on 5 weeks of paid vacation, full retirement at 48 years old, with all health benefits paid. To start my own business in an industry that was barely known, nor really had anyone doing other than two or three guys. As scared as it was, I made the decision to quit my career to start another. One that I had no assurances would be successful. Risked not paying bills, supporting my family, retirement, etc. All that flashed thru my head. But, I did it. Best dang thing I could have ever done in my life at the time. I love entrepreneurship. The buck stops with me. If I mess up, I get to look in the mirror and curse myself. Not get cursed by anyone else. I take great pride in successes and hope to learn from my failures. I don’t punch a clock, although I work more hours than ever working for someone else. I don’t get a two week paycheck, as I did. I make what I make after everyone else is paid. Sometimes, good. Sometimes, I would trade my check for one of my employees. That step from security to the unknown, is one of the hardest decisions I have ever made. Was I going to succeed? Was I going to be a failure to myself? To my family? To my friends? I tell you, that is a very disturbing feeling inside.
Contact Info:
- Website: https://www.gatorpit.net/
- Instagram: https://www.instagram.com/gatorpitbbqpits/
- Facebook: https://www.facebook.com/gatorpitoftexas/
- Linkedin: https://www.linkedin.com/in/ritchey-robin-57181b87/
- Twitter: https://twitter.com/gatorpitoftexas
- Youtube: https://www.youtube.com/user/gatorritch/videos
Image Credits
Kirk Draut