Eureka

Darren Wright

Administrator
Staff member
Messages
20,088
Location
Springfield, Missouri
Anyone looked at this type of business model before? The package provides the wood, hardware, manuals, and jigs to build the given types of furniture. Looks like they sell you the package and training, and then send you leads for your area to make the furniture.

Seems steep to get into, but I guess I could see some benefits to it too though. As long as there are sales in your area you should get leads to quote the furniture. Seems it would make it more affordable to the buyer by reducing or eliminating shipping. Their site attracts the buyers and sends the the leads to the local distributor. However, no pricing on the website would probably turn many buyers away.

Not looking at doing it, thought it was an interesting business model, but see areas for improvement with it. Also curious if anyone has come across any other similar models out there like it.
 
I used to see some guys in a flatbed trucking driving around our old neighborhood in cali chock full of picnic tables, benches, and chairs trying to sell to every homeowner that had the misfortune of being in their front yard when they drove by.

Don't know if they used this program, but they sure had a lot of inventory.
 
This is garden furniture. Surely you don't need to pay $8,000 to get directions and material to make Adirondack chairs. Yes you can make 5 chairs a day, but can you sell them, and can you sell them and build chairs at the same time? Do the math.
 
I think their idea of market price for the product is way off from what i have seen advertised around us here and we usually have higher prices than the US.

But having said that, near me (in suburbia) in our "village" on a main road there is a guy that builds the A frame style picnic table and he just puts them out front in summer and they keep moving. So different folks for different strokes. I mean HD make a kit of these tables that needs little effort other than a hammer and nail but hey sometimes thats too much for some.

All of these schemes have one big flaw in my view. The issue is not the production. The issue is the sales and marketing effort. If you work at the chairs say 20 days per month, at a rate of 5 per day thats 100 chairs. You looking at probably a min of 25 customers to off load that months production. Thats more than one per day for longer than your production effort.

Business is real easy when its presented this way. I figure a Woodcraft store pitch is not much different. Then they go and sell product to your customer via online sales and even just about free shipping when you factor in gas for outlying customers in your territory. At least in a Woodcraft situation there is brand and marketing that goes with something like a franchise.

These guys well its a thin offering in my opinion
 
Top