back to the drawing board then nicaragua

After much deliberation and indecisiveness about where in the world  I was going to travel this year (see earlier post), I decided that if I really couldn’t make up my mind where I wanted to go, then I should probably reconsider my purpose in going.

I thought about New Zealand, but decided that I should really take my family there.

I thought about Fiji, but decided that I should really take my family there.

I thought about surfing in British Columbia, but decided that it might be a little cold and lonely (without my family there).

I thought about a yacht trip in Indonesia, but decided that although this would not be cold or somewhere my family would want to do, I decided I should wait until I felt like I’ve really earned it.

I kept thinking though and was focused on finding somewhere and something that I wanted to do that would not likely be that much fun for my family; an opportunity for me to really justify travelling on my own – since I know I’ll miss them and they’ll miss me.  Surfing alone didn’t feel like a worthy enough cause.  Alas, I must be getting older or wiser.

I have enjoyed traveling to central america since 2001, and have seen this part of the world slowly develop.  Most of the development has been tourism related, and educational infastructure has been left pretty far behind.  Amber and I travelled to Nicaragua in 2009 before Ryder was born.  We traveled on lots of bumpy dirt roads but met some really nice people that weren’t quite sure what they thought about tourism yet.

I did some research and ran accross Surf For Life, which is a legitimate non-profit organization that sponsors educational and community driven development projects in coastal communities of 3rd world countries.  I will participate in the construction of a school in rural northern Nicaragua, in a town that I first travelled through half a decade ago.  I’m looking forward to connecting with the locals and helping them build their community school and sharing my thoughts (in Spanish) that education is a foundation of prosperity for their community, particularly as tourism dollars of the future will create opportunities for locally owned businesses. I will travel with a team of 10 other participants. Each team member is responsible for either donating or fundraising to cover all costs, including tools, building materials and a local foreman.  I plan to donate 100% of my portion of the costs.

That’s all.  As a CPA, I’ll also point out that my contribution will be tax deductible, not to mention going to a good cause, so I’ll enjoy the feel good aspects of that.  If you’re a CPA reading this, then you should know that I’ve considered a non-deductible allocation of the contribution as it relates to the personal benefit that I’ll receive.  I guess you could say it will be an ASC 740-10 uncertain tax position.

Perspective changes depending upon whether your standing behind the tree or sitting under it. Leaves got in the way of the choice section of this wave.

Consumption or creation

 

The alternative to consumption is creation.

Or is it?

I started on this adventure 3 months ago (or 17 years ago depending upon your perspective ).  I’ve hand shaped boards numerous times and glassed too. I once made a board start to finish in less than 36 hours. Had some good help.  I figured out early that the process is more rewarding when shared with others.

I digress though because I’m really an accountant and not a surfboard manufacturer. The business end is really hard and I have the utmost respect for the craftsmen and entrepreneurs of this trade. Here’s a blow by blow breakdown of the margins a typical shaper faces.

Blank for $65, cut for $30 (if computer assisted design/manufacturing), tools and consumables of $5 and we’re at $100 for foam per Standard short board.

Glassing polyester will run $220-240.  Epoxy and color will run up to $300 for a shorty. Fins at wholesale are about $20. This put direct costs of materials at $340 on the low end to $420 for something truly custom.  Now, this does not include labor and overhead. Overhead will vary widely for a small bay, including utilities, lets assume $10 per board. Could be a lot more .  Not likely to be much less.

The market is bearing $450 to $550 for custom boards these days leaving gross profit to cover labor at about $100 per board.  Assuming you can make and sell 1000 boards a year and spend no money on Marketing, website, team riders, warranties, defects, insurance, cleaning, business license, payroll, accounting, credit card fees, gasoline, travel, and coffee, a shaper might actually be able to swing 6 figures after at least a decade of building a brand and customer loyalty.  I think 40k a year is a realistic average. Unfortunately, I  know a couple masters making in the 20-30 range and they work hard and shape lots of ghost boards for the well established brands.  We’re working on this though and have plans to find a niche where margins can be sweet and the money well worth the time.

no easy task. So my hat is off to them. I printed my own lams and finish shaped my own this time around – just for fun. I have no delusions of making it in the board building business, but I wanted to truly be able to put myself in their shoes since I do serve  the industry and really want to help these craftsmen be successful and build their brands.

I hope for their sake that it is just as much fun after 10,000 as it is after 10.  Here’s a couple shots to share my stoke.

 

Anderson surfboards

 

 

 

Creation