CU Woodshop - $10,000 to join?

[John Schreiber]

There's a retail woodworking shop opening just a few miles form my house. I'm excited about it and a little worried about what it will do to my pocketbook to drive past good tools every day. It looks like it will be a great store.

I had also heard seen that they would have a shop which could be used by woodworkers. I was pretty excited about that too. There's lots of equipment I don't have, a lathe for example. Imagine being able to go over and rent time on a equipment for some fair price. They will also have a pro finishing room. Sounds great. An article in the local paper says it will cost $10,000 to join plus about $1,000 per year. You also get some 0.2% of some kind of ownership in the store for that price. That is way way way out of my price range.

If they can get the business, more power to them, but it seems way out of line to me. Is this realistic? Are their other shops like this? I could put together a pretty impressive shop for $10,000. They hope to get 95 people to join. That's $950,000.

What do you think?

[Jeff Bower]

I'd think a local woodworking group would be better to join. Usually the members will help each other out and let you use a machine if you need it...free of charge!!

$10,000 seems REAL high to me...maybe the paper added a 0 on accident??

[Kevin Cantillon]

John,

I also think that $10K is high. You can buy a lot of tools for that amount. The newspaper article said they already have 8 people signed up for this.

The part that I like is actually having a WW store close by.

[Anthony Anderson]

John, it seems high to me. Maybe the paper did add an extra "0" to the membership price, as the other poster suggested. Don't take the newspaper's word for it, call the store and ask for specifics. I don't think they will find many "takers" on their offer. As you stated, a person can set up a nice hobby shop for $10k + $1k/year.

It is difficult for a woodworking store to survive, without internet sales.

The long term viability of such a store is questionable, making a partial ownership, possibly worthless.

Regards, Bill

[David Hostetler]

That is so far out of line it's not even funny. You can with shopping right fully equip your own workshop... This makes no sense to me at all...

[Ken Fitzgerald]

That is so far out of line it's not even funny. You can with shopping right fully equip your own workshop... This makes no sense to me at all...

This might make sense if you don't have the property to build a shop, you belong to a home owners association that doesn't allow out buildings or using your garage for something other than it's intended use.

Still...priced way out of most folks league. It would be an elite group in my area.

[Chip Lindley]

Read The Fine Print! SCAMS are made of these things! IF it is Ligit, its wayyy expensive, and designed to lure apartment/condo woodworking enthusiasts who have no shop space! $1000 sounds more like it, but there ARE those who have $10,000 to burn in order to be a real woodworker!

Being a stock holder is one thing! Being sucked IN is quite another. LOTS of New Yorkers have bought the Brooklyn Bridge! It would be Funny/Tragic IF the shop NEVER OPENED, after selling *shares*!

[David Hostetler]

This might make sense if you don't have the property to build a shop, you belong to a home owners association that doesn't allow out buildings or using your garage for something other than it's intended use.

Still...priced way out of most folks league. It would be an elite group in my area.

While true, there are other, far less expensive options available, at least around here. Woodworking clubs, Storage warehouses with lax usage policies etc...

[Jerome Hanby]

Seems unworkable to me. If I paid that much upfront plus the yearly fee, I would want my own work area with at least a bench maybe an assembly table where my projects in progress could live. I don't see how they could accommodate nearly 100 woodworkers at only 10K a piece.

If all I was getting was access to the tools, I'm with you, I can buy a lot of tools for 10K up front and 1K a year.

[Rod Sheridan]

There's a retail woodworking shop opening just a few miles form my house. I'm excited about it and a little worried about what it will do to my pocketbook to drive past good tools every day. It looks like it will be a great store.

I had also heard seen that they would have a shop which could be used by woodworkers. I was pretty excited about that too. There's lots of equipment I don't have, a lathe for example. Imagine being able to go over and rent time on a equipment for some fair price. They will also have a pro finishing room. Sounds great. An article in the local paper says it will cost $10,000 to join plus about $1,000 per year. You also get some 0.2% of some kind of ownership in the store for that price. That is way way way out of my price range.

If they can get the business, more power to them, but it seems way out of line to me. Is this realistic? Are their other shops like this? I could put together a pretty impressive shop for $10,000. They hope to get 95 people to join. That's $950,000.

What do you think?

What an intriguing idea.

I signed up on their website for further information on the woodworking club aspect, although I don't know if they'll send me info due to my location.

Their website gives a virtual image tour of the lounge, classroom, machine and bench room as well as the finishing room.

Depending upon the price, and affluence of the area, it could be an attractive option for people who live in dwellings that preclude having a workshop.

If they have classes this could also be an attractive feature for many people.

Pricing in line with a golf club membership may be a good starting point.

If I hear anything back, I'll post it.

Regards, Rod.

P.S. If the shop functions similar to a co-operative, you would purchase a share in it, which you sell when you leave the co-operative. If that's the case, the $10K could be extremely cost effective compared to building/stocking a shop of your own.

[Thom Sturgill]

Looking at their website, they say $150,000 worth of equipment. At $1000 membership + $1000 year they pay for it in less than 2 years, which is not bad at all. At $10,000 + $1000/year they pay for the equipment with just 15 memberships.

The stock in the store would represent a much larger investment, and may take $1,000,000 or more to get off the ground. If the $10,000 includes a part interest in the store and property it may not be out of line and part ownership may simplify insurance and legal liability issues (Its hard to sue yourself).

I note that it is a Rockler franchise. I don't know what they sell for, but I was was told recently that a Woodcraft franchise requires $1 million investment.

[Kevin Cantillon]

Here is a link to the newspaper article about this business. From the article it sounds like you are buying into the business(store and shop).


http://www.news-gazette.com/news/bus...ss_to_supplies

[Chuck Saunders]

Sounds like a nice club. Not much of an investment if your dividends are a week of your labor and $1000 loss every year. I will say that the lesser investers are a small portion of the whole instead of the promoter having a sliver of ownership and selling the bulk of the risk. Of course since they own 51% you would be using their shop and I am sure that would be pointed out.

I think I like our local guild's effort better, $35 a year and as much as you want to get involved will determine how the shop progresses.

[Jim Foster]

These guys seem to be trying to get 95 people or so to cover the inventory for a Rocklers's franchise. Or am I missing something?

Here is a link to the newspaper article about this business. From the article it sounds like you are buying into the business(store and shop).


http://www.news-gazette.com/news/bus...ss_to_supplies

[Michael Schwartz]

the 1000$ a year membership fee is more than reasonable and it is 1/7 what I pay for rent and insurance on my current shop.

However the $10,000 buy in sounds risky, and I don't know how accurate the drawings are as far as shop layout that shop could quickly become cramped if you had more than 10 people working in there at any given time.

Keep in mind for instance when I am working on a project I have my table saw, router table, etc... setup for a task at any given time and there are times I would like to leave a machine set for a few hours, even days to be able to come back to that setting.

That shop setup might be interesting if your a hobbyist living in an apartment, condo, or retirement community and are not working on any serious projects. Maybe thats the anticipated market.

If your going to spend the 10 grand, ask questions, and pry all you can. I would also consult an attorney as well. If the place goes out of business you might very well loose that. I doubt from the looks of it that its a scam but in this day and age you have to keep an eye out for that as well. Regarding the part ownership as well find out what you get out of that in terms of a dividend, or a share of profits.