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Author Topic: Holy Smoke! I started a business!  (Read 1336 times)
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HowardH

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« on: January 22, 2011, 12:23 AM »

Over the last couple of years, I got started building adirondack chairs for myself, then a few family members and now for profit!  I had built four of them for my brother for his lake house and one of his friends saw them and he ordered 4 of them.  Charged him $225 each and they cost about $65 each to make.  Just finished building them this week.  Nice little profit!  Now the same guy wants two matching end tables to go with them.  My brother calls me today to give me the color the guy wants and then tells me he has other friends who want them too!  He said as long as I'm willing to keep building them he thinks I can get orders.  Let's see, 6 chairs equals a Kapex, then 4 more equals a domino and you get the picture!  Might have to scale back my insurance business... naw....

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Howard H
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Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

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Dovetail65

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« Reply #1 on: January 22, 2011, 12:41 AM »

Nice

I think you are under pricing by about 100.00 a chair.  Smiley
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HowardH

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« Reply #2 on: January 22, 2011, 10:22 AM »

That would be nice but when I checked around, ie. Eureka products, etc, it seemed $225 was pretty much the going rate.  I DO use a higher quality material, 4qtr cypress vs. s4s cedar which is only 3/4 thick and they are finished (painted) too so maybe I should go up a little but I don't want to price myself out of the market.
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
Dovetail65

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« Reply #3 on: January 22, 2011, 10:36 AM »

Yours are hand made, can be customized and painted any way the client wants. You use better material and they sure look nice! Yours are better than the units at the going rate. But I understand, some work is better than no work and when you first start out you just want the business.

You never know though, many will just shrug off a 100.00 for something that has say a Football logo on it, etc. I mean some of those Football jerseys cost more than a 125.00, just for a jersey! A jersey is not going to last indefinitely nor is it hand made like your stuff.

I remember John Lucas(woodshopdemos.com)  telling me, "Nick those are so under priced: and I told him, "but on ebay they are like 300.00". He said, "I don't care, charge what they are worth, not what others charge". He was right I priced myself out of ebay, but literally get double what I was charging and in many cases three times more before John talked to me. Smiley


Just to be clear, I am complimenting you, not dissing you.
« Last Edit: January 22, 2011, 10:39 AM by Dovetail65 » Logged

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Peter Halle
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« Reply #4 on: January 22, 2011, 10:40 AM »

Howard,

Congratulations!  You could always offer them at the lower price as a introductory price.  Or do discounts for multiples.  Or add options like sealing the bottom of the legs with penetrating epoxy for added longevity.

Have fun and get rich!

Peter
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The tools in my truck were talking the other day.  The Dewalts, PC's, Boschs, Makitas were not happy.  They also were in the minority.  Their complaint:  They felt unused and unappreciated since the Festools moved in.  I guess the truth hurts.
Dovetail65

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« Reply #5 on: January 22, 2011, 10:48 AM »

That a great idea. Who wants one, most watch a game or sit and talk with another person. One for 325.00 or two for 225.00 ea. If someone balks just go to the complimentary offer.

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Joe Smith

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« Reply #6 on: January 22, 2011, 11:01 AM »

I think he is priced at a good price.  Is it worth more,  who knows?  It all depends on his market. Priced too high, he might sell one or two, priced too low and he would sell alot more, but also work more and make less per item.  It all depends on your view of selling things/business model.  

Look at it this way.  Someone could make any item really well and only sell one or two a year to make all their money for the year, but that is all they need to sell because their price point is high.
On the other side of that market is the the guy selling the same thing, but made alot cheaper and not as well made and is selling theirs for pennies to ever dollar that the other guy is selling his. He has to sell hundreds to get to the same point every year as the other guy.

Same money being made, but different approaches.  Happens all the times with many different products.

For a guy just starting out and also working out of his garage, dealing with local customers,  I think his price is right on if he is able to get customers.

No matter what something is worth, if it does not sell, it does not matter what it is worth.

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XL shirt size.
Joe Smith

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« Reply #7 on: January 22, 2011, 11:03 AM »

One for 325.00 or two for 225.00 ea.

This would probably work and I think is a good idea.
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XL shirt size.
Peter Halle
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« Reply #8 on: January 22, 2011, 11:14 AM »

Oh.  I am sure that you know a good insurance agent (joke).  Protect yourself. 

Peter
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The tools in my truck were talking the other day.  The Dewalts, PC's, Boschs, Makitas were not happy.  They also were in the minority.  Their complaint:  They felt unused and unappreciated since the Festools moved in.  I guess the truth hurts.
HowardH

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« Reply #9 on: January 22, 2011, 11:18 AM »

all good ideas.  I suppose the next guy wouldn't know what the last guy paid! Grin  One interesting thing is since I have built 12-14 copies now, my fabrication time has been cut in half.  I built a few simple jigs to facilitate assembly, discovering little things to help speed things up without compromising safety.  I also took the time a few chairs ago to make half inch particle board patterns so I now rough out the curved parts on the band saw and double side tape them to the patterns and run them through the router table.  Even going to a down spiral bottom bearing pattern bit help prevent splintering.  Festool has been a big part of that time savings ie. using the MFS as a fence with the MFT to cut the seat slats quickly and using one of my longer guiderails to cut the angled seat slats.  Recently got a dust deputy and hooked it up to a CT22 and it saves a lot of clean up time.  It works like a charm.  I can't underestimate the value of having my material supplier skip plane and rip one edge for .20 /btft.  I could always do that myself but with my DW735, it would take a long time to repeatedly run a 100 btft  through it to get it ready for fabrication.  Not to mention it fills up a Jet DC in nothing flat!  The centrotec system on the T15 allows to very quickly change from a countersink to a torx bit for driving the GRK screws.  It all adds up.  Going back to the sealing comment, I currently use Charlie Neil's wood conditioner as my sealer.  I also have a supply of Zinsser bulls eye shellac sanding sealer.  Should I be using that instead, at least on the leg bottoms?  The cypress is pretty tough on it's own.
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
HowardH

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« Reply #10 on: January 22, 2011, 11:20 AM »

Oh.  I am sure that you know a good insurance agent (joke).  Protect yourself. 

Peter

I hope so!   Big Grin Big Grin Big Grin
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
JimRay

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« Reply #11 on: January 22, 2011, 11:41 AM »

That's a great looking chair. Don't know about the pricing aspect, but you probably need to factor in the royalty charge for using a trademarked school logo! Most schools are pretty aggressive about collecting licensing fees for the use of logos. On the other hand, if you were to contact a school, such as the University of Texas, and make a deal with them, you could probably be their exclusive adirondack chair licensee, which could become such a big business that you would have to subcontract the work!

Just a thought,

Jim Ray
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Jim Ray
HowardH

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« Reply #12 on: January 22, 2011, 11:56 AM »

I thought about that when I built that particular pair.  They were a present to my nephew but I'm sure the school doesn't care.  I don't think I will be doing anymore of them unless I speak to the school first.  They have a LOT more money and lawyers than I do.
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
JimRay

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« Reply #13 on: January 22, 2011, 12:53 PM »

I believe that if you don't sell them, royalties are not an issue. Maybe someone else is more knowledgeable on this issue and can chime in.

I bet your nephew was pleased!

Jim Ray
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Jim Ray
HowardH

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« Reply #14 on: January 22, 2011, 02:40 PM »

He was indeed!
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
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« Reply #15 on: January 22, 2011, 04:51 PM »

Looks great, well except for that paint scheme. Big Grin

I think they are 299.00 chairs, especially custom painted.

Just bump the price every now and then and you will eventually find the price they are worth to most people.

The finishing part is worth quite a bit, don't sell that part short.

Can I get one is Mossy Oak?
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Brice Burrell

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« Reply #16 on: January 22, 2011, 04:58 PM »

...Can I get one is Mossy Oak?

Sure, if you prepay the royalty. Wink
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HowardH

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« Reply #17 on: January 22, 2011, 05:36 PM »

Looks great, well except for that paint scheme. Big Grin

I think they are 299.00 chairs, especially custom painted.

Hey, careful there!  Horns had a bad year but they will come back sometime...  I do like the way you think tho re the price!
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
WarnerConstCo.

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« Reply #18 on: January 22, 2011, 06:23 PM »

...Can I get one is Mossy Oak?

Sure, if you prepay the royalty. Wink

Ok, he can call it Mossie Oke then. Big Grin
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HowardH

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« Reply #19 on: January 22, 2011, 10:46 PM »

So I finish the four chairs today, my brother calls and now I have to build two tables to go with them. Got plenty of material left over so no material cost, just labor. 14 x 14 by 16 tall. I figure $80 each.  Should only take a couple hours to knock out.
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
John Stevens

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« Reply #20 on: January 22, 2011, 11:21 PM »

I DO use a higher quality material, 4qtr cypress vs. s4s cedar which is only 3/4 thick and they are finished (painted) too so maybe I should go up a little but I don't want to price myself out of the market.
Sure, tell it to the customers & let them decide whether it's worth a higher price.
BTW, didn't Texas just break Kansas's winning streak, AT Kansas today?
Good job, Howard, and good luck with your winning streak.

Regards,

John
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HowardH

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« Reply #21 on: January 23, 2011, 11:42 AM »

Well, I'm not getting my hopes up for a final four run.  The Horns BB team fade faster than cheap paint. 
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Howard H
The Plano Texas Festool Fanatic!

Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."

mft1080, T15, RO150FEQ, TS55, RTS400, ETS 150/3, OF1400, CT22, CT33, MFS 400 & 700, Boom Arm, 800, 1080, 1400, 1900 rails CSX drill Qwas dogs
USPcompact

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« Reply #22 on: January 25, 2011, 01:13 PM »

Y'all need to send Mack back to NC.  We're going to need a new AD in a year or so.   Grin
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Alan m

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« Reply #23 on: January 25, 2011, 03:57 PM »

did you see in one of the us mags american ww i think there is a ad for all the jigs and fixtures for making those chairs. they might help you speed things along
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now
ts 55+2 1400 rails+ 1 lr32 1400 rail, domino+assortment systainer+ domiplate, ct 22 with boom arm+home made thien baffel, lr32 set, rotex 150, home made MFT,home made work center, 6 t locs for other tools, of2000 , ro 90, mft 800, trion , ls 130
wish list
of 1400, MFT 3,, even more t locs for other tools


"A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty."
- Sir Winston Churchill (1874-1965)
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