woodworking as a business, profit margins?????

Just an observation last weekend I went to a craft fair. It was a juried event they where many woodworking booths all doing this as a living. Things that come to mind one guy had some really cool boxes say 6" x 4" x 3" or so starting at $75.00 and up. Another had a desk price $5,800.00. I guess what I'm getting at is that these guys where demanding top dollar for there craft and not settling for just making a few dollars and a quick sale.
 
Let me toss out my 2 cents.

At the auctions I have been attending. Antiques are going very reasonable. Too cheap, far as I am concerned. So why would a person by a cabinet or something of that type from me, when they can pick up a nice one at and auction for $150?

The TV stand I completed a while back. Let my GOOD friend have it for $450. (Material x2, plus $50 wear and tear.) Had a couple different folks ask about the stand. I told them that same price. They all said no, can get much cheaper at the box store's. No hard feelings on my part. You get what you pay for.

The TV center I ask about a while back. Think I posted a picture as well. It was for my sister in law. Figured it real quick. Gave her the price, using above math. Never heard nothing more. Went to my nephews birthday party Sunday afternoon. There sat the new stand she bought. She didn't want to tell me, because she figured I would have gotten mad. Am I mad, nope, little upset. But she got what she paid for. Repair on it is about 5 years out. It's made with real wood. Yea, real wood ground up and glued back together. Her problem was she wanted it NOW or yesterday. Needed it to impress guests.

Now on the other hand. The guy who holds the auctions that I have been attending, also has a retail shop. We talked and I can set items in his shop and he will try to sale. First piece is no charge, just wants to see if it moves or not. Good guy, really likes local built and American made.

If a person wants to do this, they must find a niche. You can't make pens, everybody does. Cutting boards are the same. I met a guy that makes reproduction windows. He charges $1000 per window. He is located in New Harmony, In.. Lots of resto work going on there. Is advice to me was "Find your niche and be the best at it." Probably good advice.

Sorry for the long post. I am practicing for my writing class:rofl::rofl:
 
Steve, demand, and prices, are down for a lot of things. Imported antique furniture, especially items like wardrobes, that used to sell for $1,000.00 and up, way up, are now collecting dust in the shops. 'Want' items take a back seat to everyday necessities.
 
I agree on the niche market if you can find one. One obvious way is being the highest quality provider around. Your market is very small, but the return can be quite reasonable if you can sell it ($5800 desks for example).

In my local area, I have a feeling there is no market for furniture at that price. Not unless you are on a level of creating works of art in your woodwork. There probably is a potential business as a very good finished carpenter, doing built-in type work though. The cabinet market is pretty saturated.
 
I just deleted a pretty long post on this..

All I will say is what ever you do------------------------------

Work to live don't live to work.

And that should be primary goal in any business plan. There should not be any plan that requires 100 hour weeks to be the norm!
 
Here is what a successful friend of mine that was in the woodworking industry told me and it made a lot of since.

Sell what you make DON'T make what you sell.

I tried it the last way and didn't start making money until I change to the first way. It was a hard lesson to learn too.

Also if you want to make any money in woodworking now days it has to be in a production mode making multiples.

I would have people come to me to make something and give them the price. There response was Wal-Mart has it for this much so you should be cheaper.
My response was Yes I can do it for less and would be more than happy to Just give a signed contract with 50% down for 2500 of them and I would get started right away. :dunno:
Never had any takers but sure got my point across without turning down work:rofl::rofl::rofl:

Jay
 
As a hobby woodworker, I dream of a situation that someone would pay me big bucks for what I enjoy doing. I also realize that I don't have the drive to work that hard. I admire and respect all you who do have that. Had a festival here last weekend with juried art people. Two woodworkers (turner and carver) who traveled here, spent three days, endured heat and rain, and hopefully made money. Had some higher prices on their art and deserved all that they made, I am sure. Sometimes, it is our own perception of us that gets in the way when we don't charge enough for what we do. Like the $5,800 desk. People may say they can get one cheaper, but like Steve said, it will probably be the item that needs repair or tossing in 5 years (or less) or it is certainly not as unique as something we build.

My hobby output is going to the local antique mall along with the Victorian furniture and other stuff that we have in our booths. I figure I can build some items, do some repair/renovation on the furniture and make a little bit extra enjoying what I do without killing myself in the production aspect. Am I worth more than what I make? Probably, but in antiques or auctions, the item is only worth what someone is willing to pay you, no matter what you have invested in it.
 
I have chosen to pick an aspect of wood working that is in demand only because there is usually an emotional aspect to it, restoration of antiques and family heirlooms. People are willing to pay more to have a piece restored then they would for a new piece because it belonged to Aunt Fanny etc etc. I would enjoy making new pieces but the instances where someone will pay what I need to charge are not there. I am hoping that by gaining a reputation I can grow into more of the custom high $$ furniture. The commission I am completing for the new church certainly has a chance of this happening since the pastor is bragging to his buddies about me and the Bishop will see it when it is time for the dedication. I will certainly be there with a stack if business cards. In to mean time I continue marketing the restoration aspect of my business cause thats where the demand is. I have to look at several pieces that were damaged by a moving company tomarrow and I got that opportunity because of word of mouth advertising. I guess I am saying that there are opportunities there but it is very much a nitch market.
 
I came to the realization quite some time ago that making a living with woodworking (turning in particular) would be as hard (or harder) than making a living with a guitar. Since I've already been there and done that, and no longer have the desire to be a starving artist, I've accepted the fact that my woodworking will never be truly profitable. With work and luck, it can be a self-supporting pastime, but when I look at the volume of work I'd need to make and sell monthly to actually turn a profit, I can see it'd be virtually impossible for me to keep up. Perhaps it could work if I went into production mode on something like pens and bottle stoppers -- I do know a couple guys who seem to pay the bills doing that -- but turning 20 or 30 pens a day is not my cup of tea.
 
well vaughn that was another main point i was tryun to get brought up..it doesnt matter how good we might be ,, the big boys in the fancy suits or major store owners are gonna prevail.. so our best hopes is to make a dollar some day and the rest of the time we just whittle on our wood and hope some one appreciates it down the road..the days when the neighbor did this and he traded that for a pig or some other services are over..progress has won and alot of us are just wishing we were back a hundred years. when skillsets meant something and you were given a fair due for the work.
 
One thing not talked about is networking. Sure you can sit and right up a plan. Sure you can advertise. But in the real world small time shop the network is what pays the bills. If you hang at the Saturday night bingo with a bunch of cheap ol hens than that is who you are selling to.
I hung steel for better than 10 years with never so much as one add. We stayed busy right up to the end of the steel market in our parts for one reason. I knew all the General contractors and they knew me. They where my network between them and the building manufactures that would give out my name as some one they trusted to assemble there buildings. It even got to the point where one of the manufactures would call me to go see if the guys putting up that building are really missing something or is it they just don't know what's going on.
 
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