Business of Woodworking sub forum?

[William Hodge]

A business section could encourage people to talk about making the financial and management sides of their shops work better.

Being able to copy what works well for others is invaluable. The inverse is also true.

I set up my business as a project to add value to raw materials through manufacturing. So far it has worked. I buy wood for $5.80 a board foot. The last job I got, last week, was priced at $233. per board foot. I do some stuff to it between the time that Holt and Bugbee delivers it, and the contractors come get it.

Being able to pass on lessons learned would be interesting to many. Being able to share among cloistered woodworkers, on a large scale, is what makes this forum unique. Some lessons should be obvious, but I spent years learning them. Having others help teach would be great.

I worked in one shop for ten years. The most valuable lessons I learned there would be easy to pass on here.

[Brian Holcombe]

It’s very useful to have a basic understanding of business finance so that you can practice good decision making with how you invest your money.

Outside of that, good to have an understanding of sales. I worked in sales for about eight years before starting a business. Getting over the fear of walking into an interior design or architecture office and pitching is hard to do but it’s extremely valuable experience. Most woodworkers shrug that one off, but in times when I’m not busy I’m either on the phone calling people, sending emails or walking into offices and pitching.

[Joe Calhoon]

Steve Jenkins has some good advise about keeping the same customers. I think this really is the key in custom architectural woodwork. I’ve found the first job with a new customer is always a bit rocky and usually not the most profitable. Once you figure out what’s important to them a good relationship and trust can be had and it makes everything easier. Less drawing and meetings on your side and knowing what to expect makes the jobs flow easier. It works both ways you have to deliver what you promised also.
I started in 1976 with no business knowledge and at that time my area did not have much of a market for custom woodwork. The good thing about that it forced me to know my costs and keep overhead and debt low. Around the late 80s things really took off here. A lot of new shops started or moved in from elsewhere. It was more competition but the good thing it forced the prices to be up where they should. The funny thing is all those shops went under when the big slowdown hit in 2006. A lot of them had the latest and greatest in machinery but were in debt up to their ears.
It’s a different world now but sound business practices, keeping debt low, and finding good customers is important.

[Phillip Mitchell]

It’s very useful to have a basic understanding of business finance so that you can practice good decision making with how you invest your money.

Outside of that, good to have an understanding of sales. I worked in sales for about eight years before starting a business. Getting over the fear of walking into an interior design or architecture office and pitching is hard to do but it’s extremely valuable experience. Most woodworkers shrug that one off, but in times when I’m not busy I’m either on the phone calling people, sending emails or walking into offices and pitching.

Thanks for the bit of sales advice, Brian. That’s my biggest struggle for some reason, though it does get easier as time goes on and the more I do it.

Out of curiosity, in this day and age of online everything and in person interaction being less and less common (even pre-COVID) have you noticed a difference in closure rate among the difference forms of pitching you mentioned? Meaning do you have a higher sales/closure rate with any particular form of communication compared to the others (walk in / in person, phone calls, emails)?

I have experimented with cold emailing design firms and following up with phone calls at times (and need to do a lot more of it), but in person walk ins are fewer and farther between as I live in a rural area where the firms I’m interested in working with are 2-3 hrs away and not usually a quick drop in.

[Keith Outten]

The decision has been made to create the new forum.

[Zachary Hoyt]

Almost all of my customers reach me through email. I don't publish my phone number, since I am not usually in reach of the landline phone and my cell phone is spotty here. If a customer wants to talk on the phone they send me their number and when would be a good time to call them and I call then on the landline. Repeat customers are great, that way I know that they know what my work is like in person rather than just seeing pictures and videos. Sometimes someone will say "I saw the banjo you made for my friend and I'd like to order one too" or something like that, and that's always nice too for the same reason. As time goes by and more of them get out there the chances of someone having tried one before ordering should only go up, in theory. In a normal year 90-95% of what I sell is shipped to other parts of the country or other countries, and last year it was 98% or more with COVID.

[Rick Potter]

Adding this new Pro forum is a great idea, most of us duffers would enjoy reading it also.

One suggestion along the same lines. How about labeling all pro's by adding 'Pro contributor' to the name line rather than the current 'Contributor' title now used. This would help all members to understand the background 'mindset' of answers to various threads. Of course this would be voluntary.

[Brian Holcombe]

Thanks for the bit of sales advice, Brian. That’s my biggest struggle for some reason, though it does get easier as time goes on and the more I do it.

Out of curiosity, in this day and age of online everything and in person interaction being less and less common (even pre-COVID) have you noticed a difference in closure rate among the difference forms of pitching you mentioned? Meaning do you have a higher sales/closure rate with any particular form of communication compared to the others (walk in / in person, phone calls, emails)?

I have experimented with cold emailing design firms and following up with phone calls at times (and need to do a lot more of it), but in person walk ins are fewer and farther between as I live in a rural area where the firms I’m interested in working with are 2-3 hrs away and not usually a quick drop in.

Im too busy to do any cold calling right now and haven’t needed to for a few years. Like most things, use your best judgement for what will work best for your situation.

My point is that your job is primarily sales as a sole operator, so you’ll want to find a way to get into contact with prospective buyers.

We’re typically focused on machinery, which is very important, but it doesn’t do anything to expand capacity if you can’t fill the current capacity. I prefer to overload the current capacity and give myself reason to become more efficient.

[Mike Kees]

Excited about this new forum. I have found where I live that repeat customers are huge. I am a carpenter with my own business for the last 25 years. In a rural area with the nearest town being 30 km away. I have customers now where I am working for the sons or daughters of people that I started working for years ago. Many ,many of the things I have figured out have been learned the hard way. I had no mentors helping me along. This Forum will be awesome.