Gotta change business focus or fail!

Chris Robinson · Post by **Chris Robinson** » Mon, Jul 23 2007, 11:29AM

Hey,

We're at a point that we need to make some serious changes in our products, market etc.

If there's a member out there (or Ken!) that has gone through this exercise, I would like to talk to you.

I don't want to get into all of the gory details but suffice it to say that our housing market has nearly hit rock bottom and I see this as a time to make some serious changes to our products and markets. I'm thinking of persuing the furniture products and maybe setting up a webstore?

My new email has just been changed. It is chris.tcc@embarqmail.com

Thanks,

Chris Robinson

Joe Dusel · Post by **Joe Dusel** » Mon, Jul 23 2007, 9:30PM

What exactly do you do now? Who is your current target market? Do you have a router?

If we had some more information on your current situation maybe some of us might be able to help you. (Not necessarily me, but some smarter people.)

Joe

Chris Robinson · Post by **Chris Robinson** » Tue, Jul 24 2007, 9:22AM

Hi Joe,

We have a Thermwood Model 40, SCMI edgebander, spraybooth, Kremlin spray equipment and all the misc. shop equipment.

Up till now, we have focused on custom kitchen and bath cabinetry. We specialize in frameless cabs. The typical customer is 35-55 yr old, new home in the $275k - 500k range. Average cost was $25k. The customers usually don't want alot of ornate carvings but very good quality construction.

Target homes in our market have all but stopped. The contractors still building have moved to factory cabinets in order to maximize profits due to it taking 3x longer to sell. I can't and don't wnat to compete with Lowes, Home Depot and the lowballers.

Thanks,
Chris

Forrest Chapman · Post by **Forrest Chapman** » Tue, Jul 24 2007, 10:20AM

Chris,

If your in or near a big rich yuppie town then you might want to think about going all green. Raise your prices and hit the homes that are 1 mil and up. Even in down markets these homes are still being built. Go after the homeowner, not the builder. You can buy a list of new home permits that give all the information and start sending flyers.

Forrest

Joe Dusel · Post by **Joe Dusel** » Tue, Jul 24 2007, 3:42PM

Going green might be a good idea. You might want to also try to more go after smaller shops to process jobs for them. Those low-ball guys are probably not that well equipped. You might find that your competitors can be good customers for your CNC business. I personally would be thrilled if I didn't have to do installs.

Also, depending on how proficient you are with eCabinets, you might want to look into setting up a class to teach others to use the software. This might give you a source for new clients when you teach them how easy it is for them to have their designs processed on your machine. If you have any local community colleges in your area this would be a good place to propose setting up the class. I'm teaching a class at a local community college again this fall and I've already got 22 students enrolled in it. I'm planning a field trip this semester to a local shop with a Thermwood router.

Joe

Chris Robinson · Post by **Chris Robinson** » Tue, Jul 24 2007, 4:02PM

Joe,

I hate installs. I don't mind the work. It's trying to work around the customers, their families and the fact that the shop shuts down while I'm out on an install.

It never occured to me to set up classes to teach others how to use eCabs. There are areas of eCabs that I haven't gotten up to speed on yet. Profiling for one. Been using cad software to do that.

We have renewed our efforts to reach shops within our region. I like cutting parts for other shops.

I think there is a niche in my area for well designed, professional entertainment centers and possibly the credenzas.

Thanks,
Chris

mikesand · Post by **mikesand** » Wed, Jul 25 2007, 10:01AM

Try hitting up the local high end audio/video retailers. These stores build complete theaters with the cabinetry and millwork to match. I found them suprisingly aproachable. My ability to produce 3D mockups and photorealistic renderings impressed tham a lot.

Mike

Mike Bowers · Post by **Mike Bowers** » Wed, Jul 25 2007, 12:01PM

Chris
Mike & Forrest had 2 very good points, the A/V market is very hot right now, and going green is REALLY popular now with Al Gore leading the charge. If we were to slow down on our commercial work, I would explore both of those options.
Mike
Failure is NEVER an option