Content 1. Which Is Better Buying A Combination Woodworking Machine Or Used Machines? 2. Used Industrial Woodworking Machinery Makes it Easier to Start Your Own Company 3. Your New Woodwrking Business - Knowing What To Charge 4. Do You Have What It Takes To Turn Your Woodworking Hobby Into A Business? 5. Starting a Business in Woodworking? Discover the Hidden COSTS That Threaten Your Business
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1. Which Is Better - Buying A Combination Woodworking Machine Or Used Machines? Whether you're starting a new woodworking business or taking your existing business to the next level, affording the necessary woodworking machinery can be a major concern. Like other vocations that require specialized machinery, the prospect of starting or upgrading a woodworking business can be an expensive one; so much so, in fact, that some woodworkers give up on a new or existing business without fully investigating their ability to buy equipment at lower than expected prices. To get the best prices on commercial woodworking machinery, woodworkers have two options: they can purchase used woodworking machinery or they can purchase a combination woodworking machine that features two or more equipment functions in one unit. Below, we look at the advantages and disadvantages of each option. >>>For More Information Please Click Here!<<< Buying a Combination Woodworking Machine Advantages: A combination woodworking machine is to woodworkers as a Swiss army knife is to outdoorsmen. Instead of being weighted down with as many machines as you have woodworking needs, combination machines allow you to economize on woodworking space and the overall price of your equipment. As one might expect, the cost of combo machines is largely based on their number of functions, with those that offer the most costing the most. A quality combo machine that offers fewer features can cost as little as $5,000, whereas one that offers the highest range of features can cost roughly $30,000.
Disadvantages: Although combination machines are typically engineered to offer commercial grade dependability, they rarely offer the durability required by industrial grade woodworking, where machines remain mostly in use instead of mostly at rest. In addition, combination machines have little hope of meeting the production rate of a truly high demand woodworking operation, which explains why they are usually purchased by smaller woodshops. Buying Used Woodworking Machines Advantages: The advantages of buying used woodworking machinery depend on the machinery, with industrial grade machines offering the best value due to their lengthy useful lifespan. When the prospective dependability of a used woodworking machine is properly assessed, its significantly lower price than a new machine (a 40 percent discount isn't uncommon) is extremely attractive. Thus, the primary advantage of properly assessed used woodworking machines is their delivery of new machine quality at a used machine price. >>>For More Information Please Click Here!<<< Disadvantages: If you plan on purchasing individual machines, you'll need the space to accommodate them, which can mean moving out of your woodshop and into a warehouse style work facility, which might be your plan in the first place. Other than spacing concerns, the biggest disadvantage of purchasing used woodworking machinery lies with its purchasers and not the machinery itself: the potential to inadequately assess a machine's dependability. A proper assessment of a used machine's dependability follows three steps: assessing the seller's reputation at the Better Business Bureau (BBB); requesting a copy of a machine's official maintenance record; and
conducting a first hand inspection of the machine or having an expert third party conduct the inspection.
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2. Used Industrial Woodworking Machinery Makes it Easier to Start Your Own Company With the recent trend in company layoffs, more people are becoming interested in starting their own business, and it's easy to see why. Although starting your own company means that you have to generate your own business, it also means that you'll never be called into a boss's office and told that you have to find another way to pay your mortgage. When starting their own company, most people choose an area of business that they have experience in. For example, hobbyist woodworkers and employees of woodworking companies often decide to start their own woodworking business. However, if this describes you, then you probably realize that there's a hurdle to starting your own woodworking company besides drumming up business: the cost of commercial woodworking machinery. >>>For More Information Please Click Here!<<< When you start shopping for commercial woodworking machinery, the sticker shock can be severe. For instance, a high capacity CNC router can cost hundreds of thousands of dollars. So, what do you do? Take out a second mortgage based on your business prospectus? You could, but a smarter idea would be to shop for used industrial woodworking machinery. If you're like most woodworkers who decide to start their own company, then you probably want to open your production line with new machinery. But if your machinery will be industrial grade, then you may as well save money and purchase it used. Unlike domestic grade machinery, commercial grade machinery is designed to stand up to years of commercial level use without
needing frequent repairs. As long as the machinery is well maintained and is used according to its purpose, you can expect it to function well past its indicated lifespan. With this in mind, there is still the question of exactly how much a used industrial woodworking machine costs. In many cases, a used industrial woodworking machine can be purchased for around half of its original sticker price. But if you're thinking about purchasing a top level CNC router, that still means that you might pay into the six figures. But you have to ask yourself this: as you start your woodworking business, will you really need a 5-axis CNC router whose size requires a warehouse-like work setting? >>>For More Information Please Click Here!<<< Unless you have a commercial sized work floor and a long list of high demand clients in place, starting with woodworking machines whose purchase price doesn't pressure you to build a large clientele in an unreasonably short amount of time is the smartest choice. As your company grows, you can always use your profits to upgrade your machinery to meet demand. As you shop for used woodworking machines, the key to investing your money wisely is ensuring that a machine has been properly maintained. Companies that care about their machines always maintain a logged service maintenance record for each machine. By asking to see its maintenance record, you can ensure that a used woodworking machine will meet your business and economic needs at the same time.
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3. Your New Woodwrking Business - Knowing What To Charge When selling your wood projects, what you charge for your final product is an important aspect of your woodworking business. If your prices are too high, you will lose customers, but if your prices are too low you risk the ability of having a profitable business that will provide you with the necessary income. This is a challenge that faces many woodworkers when starting a new woodworking business. A good formula for determining a good price point for any specific product is to calculate the costs of materials, shop supplies, shop expenses and any subcontractor fees. >>>For More Information Please Click Here!<<< The total of these expenses is multiplied by whatever number that gives you a product price that is equal to your anticipated profit and your costs combined. Although this is pretty basic, it can be a little tricky. Here's a simple way to calculate all of the cost factors involved. First, base your material costs on the price of the wood used and add 15% for waste. Add in any cost of fasteners, hardware and shop supplies like sandpaper, thinners, solvents, etc. The next step is to come up with an overall hourly rate for your shop. The best way to do this is to combine your shop expenses with what you want to charge for your own time and labor. Start by calculating all your woodworking business shop expenses like rent or mortgage, utilities, machinery maintenance, advertising and any other shop related costs. The easiest way to come up with
an hourly figure for your own time is to determine how much you would be earning if you worked for somebody else. An average month has 4.33 weeks, and if you plan on a 40 hour week that comes out to about 175 hours a month. Add up all of your shop expenses and divide that total by 175. Now take that number and add it to what you want to charge for personal labor and you now have your shop's hourly rate. You now have a basic outline of how to calculate prices for any of your products. Here is a simple example: >>>For More Information Please Click Here!<<< Let's keep the numbers simple and assume that your shop expenses are $875.00 each month. That would come out to $5.00 an hour for a 175 hour month. Now add you're your personal labor charge. Let's use $20.00/hour for this example. So the shop's hourly labor rate would be: $5.00 + $20.00 = $25.00 The materials for this project cost $300.00 and the time spent was 30 hours. Your price for the project should be: ($25.00 x 30) + $300.00 = $1050.00 At this point, you need to determine whether or not you are going to add in any amount for your profit margin. This is important to any woodworking business and should be added. The industry standard is 15%. For this example the profit margin would be 15% of $1050.00 or $157.50 and you would add this to come up with a final price.
$1050.00 + 157.50 = $1207.50 Final Price This is a pretty basic approach to calculating product costs based on your overall expenses and it is effective. Of course, if your expenses are very low your prices will also be lower and more affordable. On the other hand, high expenses have the opposite effect. A good reputation is very important to your woodworking business, so be fair and give good quality for the money.
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4. Do You Have What It Takes To Turn Your Woodworking Hobby Into A Business? You enjoy woodworking as a hobby. But have you ever thought about making money with it? If you haven't, you're not alone. Here are three misconceptions that might have been holding you back. In this article, we're going to debunk them so you can build your thriving business! The reason most people who enjoy woodworking as a hobby don't even think about making money with it is that they simply can't imagine anyone paying them for their creations. And even if they could, they wouldn't know how to get started finding the people who WOULD pay them. >>>For More Information Please Click Here!<<< So let's look at three of the most common objections and take them apart - I bet you'll start to see the possibilities. 1) I'm not good enough That's the most common objection of all. Most of us have been so browbeaten over the years that we feel that nothing we do is good enough, especially the things we do "just" as a hobby. Sure, someone who is a 'real' woodworking professional or even a woodworking artist might be able to make money with it, but YOU? Not a chance. Or so you think. But guess what? That's not at all the case. There are quite a few woodworking hobbyists out there who are making a very nice living at it, and you're probably as good as any of them.
2) Who would want my stuff? Even if you believe you actually MIGHT be good enough, the next hurdle is who would want to buy what you make. Well, prepare to be surprised. There are LOTS of people out there who will happily send you money in exchange for certain woodworking products that you can create in an hour or two. You may not know where to find those people yet, or how to help them find you, but you can learn. It'll be worth it. Which brings us to the next objection. >>>For More Information Please Click Here!<<< 3) I don't know where to start Obviously, there are lots of questions that you need answered. Which handmade wood products are the most popular? How to create the products you can sell? And how to get your products in front of those eager buyers so they can send you money. Not to mention how to find the time and space for your new business. And on and on it goes. But you shouldn't let that stop you. Find a comprehensive guide on how to turn your woodworking hobby into a woodworking business, study it, and get to work.
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5. Starting a Business in Woodworking? Discover the Hidden COSTS That Threaten Your Business You may be thinking about starting a woodworking business. And with good reason - it's obviously something you enjoy doing, and in today's economy you may very well have plenty of time on your hands to start a woodworking business. You may be considering making custom furniture - anywhere from simple utility kids room furniture to finely detailed and finished craftsman furniture. Maybe it's custom kitchen and bathroom cabinetry that you're interested in producing. Or perhaps toys of a bygone era is your passion. >>>For More Information Please Click Here!<<< There are many different markets you can go into with your woodworking business. But no matter what products you make, in order to run a profitable woodworking you'll need customers and an accurate assessment of your costs. Cost is not just a factor of materials and labor, there can be hidden costs that eat away at your profits. For example you need to factor in labor that my not be directly associated with constructing the product. There's hidden labor expense in a lot of things. For example, there is labor involved in shopping for the materials needed, for shipping or for delivery whether you do it yourself or have someone is doing it for you, these are all examples of expenses that need to be calculated into the cost of a project. Other hidden costs can include the electricity for running power tools, maintenance of those tools, shop lighting, heating and air
conditioning, or fuel, maintenance for running a compressors generators, and the company vehicle, not to mention insurance. Don't forget the small stuff too - there's fasteners like screws, paints, stains, and adhesives. Hardware like handles, hinges, and gliding feet or casters. All of these items, no matter how minor are an expense to your business.
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