Holy Smoke! I started a business!

HowardH

HowardH

Member
Joined
Jan 23, 2007
Messages
1,572
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....

[attachimg=#1]
 
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.
 
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. :)

Just to be clear, I am complimenting you, not dissing you.
 
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
 
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.

 
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.

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

Peter
 
all good ideas.  I suppose the next guy wouldn't know what the last guy paid! ;D  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.
 
Peter Halle said:
Oh.  I am sure that you know a good insurance agent (joke).  Protect yourself. 

Peter
Click to expand...

I hope so!  [big grin] [big grin] [big grin]
 
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
 
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.
 
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
 
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?
 
WarnerConstCo. said:
Looks great, well except for that paint scheme. [big grin]

I think they are 299.00 chairs, especially custom painted.
Click to expand...

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!
 
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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