On 12/20/2012 2:25 PM, Jeff wrote:
> Taking your suggestions, I built a set of light simple yet incredibly
> strong and rugged rectangular& triangular wine racks in my garage out of
> hardwood and anodized aluminum that you can stand on and they won't even
> bend a bit!
>
>
http://imageupper.com/i/?S0200010040011A1356042152863288
>
> After making all the jigs for the repetitive work, I was just wondering
> what these hardwood/aluminum wine racks might sell for on the open market.
>
> I probably only need to sell a few to make back my tooling costs.
>
> I can probably custom build them in any reasonable geometric size
> from 2x2 (4 bottles) to about 12x12 (144 bottles), either rectangular or
> triangular.
>
> For a typical home, I would guess a counter top wine rack would be the 6
> bottle to 12 bottle wine racks configuration. What do you think I can
> sell these for if I build a web site to do that?
>
That's easy. It's on page one of your business plan.
The one you wrote before you designed/built/tooled the product
that meets the customer needs you defined better than the competition.
If the picture you posted is the best you can come up with, you're
competing with ladders and step stools.
If that's not your intended market, you need a different presentation.
For most of us, ability to stand on our
wine racks is not even on the list of purchase criteria.
A particularly ironic twist is that your attorney will almost certainly
demand that you put on a sticker on it that says, "don't stand on this."
Executive summary: You have a hobby you enjoy. Take pride in your hobby.
Give 'em as Xmas presents. Sell a few to people at church or at your
day job or wherever. Custom make 'em in different shapes. Life is good.
What follows is not my intention to rain on your parade.
My intention is to convince you that you need a raincoat.
There will be plenty of others raining on your parade.
If you're not up for a tirade, press "next" now. I'm feeling
particularly verbose...
I had the opportunity to take some part-time consulting work.
I critiqued his plan for free and sent him off to a friend
in the consulting business. And here's why...
I did some research and found that the first dollar I took
in payment opened the door to much misery.
I needed a business license.
I needed an accountant.
I needed a tax consultant.
I needed an attorney.
I needed a marketing department
I needed a sales department
I needed an engineering department
I needed product liability insurance.
My garage shop was in violation of zoning laws.
The county organization that operates the bus line wants to tax me.
The city, state and federal governments want to tax me.
There are more environmental and safety and and and standards
I must meet. And those often require expensive testing.
Raw material inventory.
Finished product inventory.
Cash to fund it.
Place to store it.
How did you verify that you're not violating someone's patent
or design copyright?
And that's just the stuff I can remember in 15 seconds.
There was no way I could afford all that without a LOT of consulting
business that I don't want.
You can't stick your toe in business. You're in or you're out.
The primary killer of small business is failure to plan.
Two other important issues are
Failure: insufficient sales.
Success: too many sales.
When you read the above list, I'm sure you made your "dismissal face"
and grumbled that you can do all those functions yourself.
And you can, as long as your sales are insufficient to cover overhead.
By the time the sales get to break even, you're broken.
You have to decide whether to spend time in the shop making widgets
or doing the bookwork or updating the webpage or visiting a potential
sales channel or driving widgets to UPS or sleeping. If you think
you'll never have a problem with delivery of raw material you need
to meet the output schedule and the resultant angry customers,
you've never run a business.
Notice, that there's nothing in that list that
relates to family or having fun.
At some point, you have to hire people. And if your product is priced
based on small profit at a price, you're screwed.
If you're gonna do all those functions listed above yourself, make sure
your profit margin allows you to pay yourself all those salaries.
Eventually, you'll pay rent on extra space.
And if you evolve to selling thru a local store, they want 30% or more.
And if in a different area, your markeketing arm is gonna want another
30%. Make sure that's included in your pricing model.
If you do all that, you'll be making insane margin per unit on small
volumes...but as you grow, that will drop dramatically. If your price
won't support the overhead, you've got the wrong product.
Success is one of the biggest killers of (unplanned) small business.
Asking the question demonstrates lack of business skills.
Your picture does not inspire confidence in your marketing skills.
The literature is riddled with tales of people who lost their
life savings, their spouse and their self esteem over a small business
venture they were ill-equipped to enter.
If you seriously want to devote 110% of your life to running a small
business, take some business classes and start at the business
plan end, not the finished product end. You need a business plan
for the overall business and one for each product.
One of the more enlightening sections of the business plan is the
discount cash flow analysis. Google it. Take a crack at creating one
and try to convince yourself that you'll ever break even.
For most of us, the right answer is to enjoy the hobby we do so well.
Back to your question...
Most anybody you ask will have an opinion about what a wine rack should
cost.
But the real question is, "how much will you give me for this one
right now, cash money?" That's the only answer that counts.
For online comparisons, you can't beat google.
I like this one
http://www.outblush.com/women/doubtblush/doubtblush-wine-rack/
;-)