Probably a daring question here on the board, but here goes……….
Is there any input from Woodcraft Franchise operators, in opening your own store with their help?
Was this a successful venture and is it a viable good business?
Willie
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Replies
Not a Woodcraft franchisee, but if you are curious about getting a franchise going, Woodcraft will probably be very glad to give you a bunch of info. Just give them a ring. I've done a bunch of research in restaurant franchises, and you really need to have a high population location to position in. I'd think it would be even more important for a specialty store, and I bet Woodcraft has some criteria. I don't know where you live of course, but call them ask ask for their franchise packet, and ask if your location meets these basic criteria.
I suppose a Woodcraft would be similar in the capital required for startup as a restaurant franchise. Of the five I've looked at, 1.5M plus cost of land is average. You can guess what kind of sales you'll need to cash flow those input cost.
Probably not much help, but my $.02.
Don't forget Rockler though, they have franchises as well.
I prefer the Woodcraft model though because the classroom they have COULD (although seldom is) a HUGE boon to sales and marketing if used correctly.
I live near a couple of the stores in CA. The one in Sacramento is the 2nd largest grossing store and is poorly run. The other one is not corporate and does cool stuff like sell used tools which done well could be a money maker AND a good way to attract new people to the hobby.
I'll second your comment about the Sacramento store.
I thought it interesting that Woodcrafters kept the right to sell online when they decided to franchise. With $3 a gallon gasoline, how many people will be driving to the store? Ordering online (for some things) is so much easier! The nearest Woodcrafters to my house is about 2.5 gallons of gas away (there and back) with 2 hrs total driving time.
PlaneWood by Mike_in_Katy (maker of fine sawdust!)
PlaneWood
Not sure about the online sales, but reading their franchise stuff, it appears as if the franchises participate. Perhaps the ship from the nearest, but I'm just guessing.
Willie
PS. Did you get my email?
The franchise owner here (Houston) told me they got no cut of online sales.
PlaneWood by Mike_in_Katy (maker of fine sawdust!)PlaneWood
If I go there at all it is because I need something right now. If I can afford to wait, I can almost always find a better deal, without sales tax or burning my own gas, on line.
Jon -
Pretty soon you will have to be paying sales tax for online orders, even if they are out of state. 30 or so states have entered into some kind of an agreement about that with the stated reason being that they were losing to much sales tax. But, since it violates the "No taxation with representation" premise in our constitution, I'm sure it will wind up at the Supreme Court someday. I have already paid Utah sales tax for one online order place that is solely based in Utah. I was told that Utah and Texas were states participating in the agreement. For now, most online order places are ignoring it.
PlaneWood by Mike_in_Katy (maker of fine sawdust!)PlaneWood
Just guessing the politicians figure out some way to make the stupid out of state sales tax stick.
Steve
If you're a business in California, it is your responsibility to calculate and pay sales tax every time you buy something that the State Board of Equalization deems taxable, even if the seller failed to add sales tax to your invoice.
If other states have similar tactics, they'll likely persuade businesses to assess and collect sales taxes on internet sales in order to avoid negative audits, penalties, and interest charges.
In a former life as a CFO, it was not uncommon for business people to come up with "answers" and pose them to government entities (often through business groups of which they were members) before the government entity even asked the question.-Jazzdogg-
"Don't ask yourself what the world needs. Ask yourself what makes you come alive, and go do that, because what the world needs is people who have come alive." Gil Bailie
Propose answers to unanswered questions aye? I suppose the trouble is to get them to ask the question.
I've got 35 employees and not insignificant sales, and the taxes I pay for my business are fully half of the cost of doing business. Wish I could find some poor sucker to sell to, I can't even make enough of a profit to matter. Taxes were 10x the profit last year. I wonder why we have inflation and a crappy local economy......
Hey, want to buy a restaurant??!!!
My advice to someone getting into a new business, double your tax estimate on your cash flow sheets. There, now that I've vented, I feel better.
Steve
"Hey, want to buy a restaurant??!!!"
Hi Steve,
I may be nuts, but I'm not crazy! Spent 30-odd years with my hands in the innards of hotels, bars, and restaurants, and know only too well what the pitfalls and failings are.
I'm convinced that most of the folks who fail in start-ups don't have a clear understanding of what I call "The Big Picture;" foodies who know nothing of internal controls, for instance; or craftsman/artisans who can hand-cut dovetail joints, but don't have a thorough knowledge of business, especially marketing & finance; or reals estate investors who think buying an apartment building or hotel is nothing more than a passive real eastate investment (NOT!).
I hear ya, brother. Good luck,
-Jazzdogg-
"Don't ask yourself what the world needs. Ask yourself what makes you come alive, and go do that, because what the world needs is people who have come alive." Gil Bailie
LOL, and me and my crew find new ways to test the laws of economics daily!
The hardest part to any business I think, is to run it like a business. Every single decision can be analyzed in cold hard $'s. Sentimentallity will cause insolvency. Geeze its tough sometimes though.
Have a good one,
Steve
"Just guessing the politicians figure out some way to make the stupid out of state sales tax stick."
Hi Steve,
If you are a California business, they already have.
It is the responsibility of each business to accrue the tax liability for all purchases for which tax should have been charged, but wasn't, and remit to the State of California accordingly.
When the State Board of Equalization performs a sales tax audit, they review your business purchases and asses taxes, plus penalties and interest, for the things you bought without paying tax if you haven't already reported and paid.
-Jazzdogg-
"Don't ask yourself what the world needs. Ask yourself what makes you come alive, and go do that, because what the world needs is people who have come alive." Gil Bailie
You had better read the Constitution. It's true that "no taxation without representation" was a rallying call in the movement toward independence no such language was ever in the US Constitution. The Constitution originally limited direct taxes to those based on a per capita basis, but the 16th amendment changed that, and allowed income taxes. There are provisions concerning duties laid on exports or or goods traveling between states.
There is a law, passed by Congress and changable by new legistation, that prevents states from levying taxes specifically on the internet, but no law prevents states from collecting "use" taxes on goods purchased by their residents from out of state sources.
As others have said, in some states you are obliged to report and pay taxes on all items purchased over the internet or otherwise without paying sales or use taxes.
In practice many break such laws except where enforcement is easy, as when you are required to register an automobile, boat or plane, and show proof of sales (or use) taxes paid. In those states, you already break the law when you fail to report your purchases from Amazon or LLBean.
Edited 7/8/2006 5:17 pm ET by SteveSchoene
The folks at Seattle Woodcraft (which is a ferry ride + a few miles away, usually takes ~3-4 hours all told) have made a point of telling me that they're more than willing to ship. I just have to call and request the items. Don't know if they'd all do this, but for me it's great!forestgirl -- you can take the girl out of the forest, but you can't take the forest out of the girl ;-)Another proud member of the "I Rocked With ToolDoc Club" .... :>)
I live about 40 minutes from my local woodcraft. I always look online for the part numbers I want, then call my local woodcraft and have it shipped to me. This way I support local business and I get my order the next day on my doorstep.
I live on the other side of the state and only get to the Seattle Woodcraft Store once or so a year, but I order from them regularly.
Go to their web site. They have a section on opening a store. I looked into it (briefly) and there documentation indicates they will help you get going. They will even provide support on locations. No business venture is a sure thing, but you never know. Give them a call. Go for it!
I worked at a Woodcraft in Portland OR and the francisee had two other stores and claimed that was the only way to make any amout of money. That being said, if it were too bad then why get into more than one? I really don't think it's a big moneymaker but you may do OK. I can tell you that I would never manage one though, I was there about 4 months until I got a real job, and I went from new guy to about third on the seniority list in that amount of time.
MJ
"I can tell you that I would never manage one though, I was there about 4 months until I got a real job, and I went from new guy to about third on the seniority list in that amount of time."
Wht was the problem, not enough business to keep you busy, bad managment by the owners, or something else??
Willie, the problem was/is a high rate of turnover. Retail is one of the lowest paying fields around and you need people who have at least some knowledge of woodworking who can deal with customers of all skill levels etc. Some of the employees leave just after they get enough time in to get the employee discount and stock up. I'd advise if at all possible to work at one or something similar for a while to see what the operation is like. With the right management/employees it makes a huge difference to the operation, but for just above minimum wage you can't always get the right people, sometimes you just have to take what you can get and the whole atmosphere suffers.
MJOver the Hill? What Hill? I didn't see any Hill!
I looked into a WoodCraft franchise. They sent me materials but I had to ask several times; when I got more serious, I decided against it because trying to get them to participate in my process was like pulling teeth. If it's that hard to deal with in the beginning, what's it going to be like when you've invested your life savings?
IIRC, the starup cost for the franchisee was around $500,000, and they can help with aquiring financing from a lender.
Charlie
a hog, conn a ship, design a building, write a sonnet, balance accounts,
build a wall, set a bone, comfort the dying, take orders, give orders,
cooperate, act alone, solve equations, analyze a new problem, pitch manure,
program a computer, cook a tasty meal, fight efficiently, die gallantly.
Specialization is for insects.
- Robert A. Heinlein
Charlie, an old very rich guy once told me " why put up your money and significant labor to let some one MAKE money on your back" I have never forgot that advice, it's sooo simple to understand. If you don't have the skills to start and manage your own thing --DON'T do it.
I came late into this thread (read all 42) but I delighted in your closer- It reminded me of my dad. He was an old (I am 64) Irish carpenter from Newfoundland who never bought anything that he could make and with the exception of the sonnet and programing a computer HE WAS YOUR MAN. Thanks for the memory. Regds, Pat
My favorite quote, I think. Touches me in a deep place, somehow--feels key to my informal and instinctive philosophy of life...glad it touched you too.Charlie
A human being should be able to change a diaper, plan an invasion, butcher
a hog, conn a ship, design a building, write a sonnet, balance accounts,
build a wall, set a bone, comfort the dying, take orders, give orders,
cooperate, act alone, solve equations, analyze a new problem, pitch manure,
program a computer, cook a tasty meal, fight efficiently, die gallantly.
Specialization is for insects.
- Robert A. Heinlein
Hi Willy,
Honestly, I would stay away from ALL “Brick and Mortar” ventures. Did you know that some cities now require that you prove the internet will not put you out of business? By 2010, just 4 short years from now, the internet will comprise of over 80% of all commerce in America. Besides, as a brick and mortar franchise owner you will be working 70+ hours a week. I am well into 6 figures working only 10 to 15 hrs a week with an internet franchise. And yes Woodcrafters is part of my site. I get 25% commission and do almost nothing.
Ken
Sheez ken,
I must have written that thread a looooong time ago.
Life has progressed and I have started my own business, with four desks, four telephones and four computers on the web.
No woodwork at the moment, but hopefully the business will be profitable 6 months from now and we can again make sawdust.
You are correct, I'm surprised that the old school still survives, but be careful, once vendors get web proficient, the middle man will disappear, to the consumer's advantage.
Willie
Edited 7/6/2006 11:59 pm ET by Willie
"Did you know that some cities now require that you prove the internet will not put you out of business?"huh??? Can you give us the name of at least one city with this ordinance ? Seems to me like one of those urban legends that means nothing."And yes Woodcrafters is part of my site. "what is your site??
Portland Or
Sorry,
Just read though the Portland OR form for getting a business license and guidlines for opening a business - No mention of the internet or anything like that on the forms. As I said - Urban Myth
Look under the construction permit and you will find it
Can you please post the link - I looked through a bunch of the permits - can't find anything even remotely related.
And I suppose you want to sell such franchises to others.
Just to be clear to say the internet will comprise 80% of commerce in US is a complete crock.
Similarly, there are no ethical free lunches with jobs or anywhere.
I suggest that you go check out hsdent.com he is the leading economic forecaster in the world and has been right for over 15 years in a row. EVERY big business knows this and are working toward it. Critical Mass has come and gone, we are now in the Power Wave (buss eco 101)
You have to be kidding. Strong confirmation that Ripley was right--there IS one born every day.
Your disbelief in what is currently happening does not stop it from happening. Nor will it prevent the profiting from the greatest shift in ecconomics. Check out S. Korea. In 3 years time they went from critical mass (10%) to more than 50% of the country shifting to e-commerce FACT
I almost feel sorry for people that have their heads buried in the sand and let things pass them by because of narrowmindness
Please provide a source for your "fact."
Here is an e-com breakdown:
2006 figures:
- B2B e-commerce transactions totaled 80,703 billion won, accounting for 89.7 percent out of the total transactions. B2G e-commerce transactions totaled 6,220 billion won, accounting for 6.9 percent. B2C e-commerce transactions totaled 2,161 billion won, accounting for 2.4 percent.
Seems that B2C (business to consumer) is by far the lowest of e-commerce in SK.
Since you didn't clarifiy what you ment by 50% and looking at the figures from the Korean National Statistical Office http://www.nso.go.kr/eng/index.html I'm not sure what your ranting about?Only two things money can't buy, True Love and Home Grown Tomatoes...Misty River Band
First, your statistics are wrong--badly wrong. Total transactions in e-commerce in the most recently reported period (Q1 of 2006) were 89,900 billion won. But nearly 90% of the total transactions were B2B transactions. This clearly says that the won value of e-transactions cannot be compared to the won value of GDP, which was 193,200 billion won. GDP only measures final sales, of which only capital goods are B2B transactions. Most B2B transactions are washed out in the calculation of of GDP. One a comparable basis, total transactions would be much, much more than GDP, but I didn't find, in a quick look on the Korean statistical source any such comparable statistic. South Korea invests heavily, so the difference wouldn't be so great as in the US but total transactions are not a measure widely reported.
If this statistic came from your alleged economic guru's, then they should go back and study economics 101, because that's where this subject was first taught, at least when I taught the course to undergraduates.
Edited 7/13/2006 10:56 pm ET by SteveSchoene
If you "taught" in this subject you would know who HS Dent is
I have never heard of Dent, and there isn't much reason I should have, either as an academic economist, or more recently as a research analyst at several Wall Street firms.
He's not an economist--his educational credentials stop at having a Harvard M.B.A. There is no evidence of much sophistication in his analysis. The cycle and population material is old hat, usually given different names after the academics who first discussed them decades ago. Most scholars have abandoned the "cycles" terminolgy as being misleading, since there isn't forecasting power in them. His historical overview offers no interesting insights that I could see at first reading.
And I certainly am not going to spend money on any of his publications or lectures. In my opinion, a good bottle of wine will offer more value--I recommend it.
You have just shown your foolishness. As scripture says, do not cast pearls in front of swines. You have shown yourself to be just that. That is why I am wealthy and at 40 am retired with enough to last severial lifetimes. Goodby
From his own "testimonial" page on his web site two "predictions" were wrong. And I didn't see him "predict" the dot.com bubble bursting either did you?
So again where did you pull the "50%" number from?
10% of zero is better than nothing <g>
Only two things money can't buy, True Love and Home Grown Tomatoes...Misty River Band
Ken:
I am a bit familiar with Dent. I was sent to one of his seminars several years ago. I also read some of his material. He is more of a futurist and seminar entrepenaur than an economist. MANY of his "predictions" do not come true. I am still waiting for the economy to BOOM in the 2000- 2008 period. IT has not hapened.
Take him with a grain of salt. And if we listen to Dent, the the economy is going to implode in Oct. 2009. That may happen and it may not........no one can predict the future. Life is much too dynamic for futurists to be accurate.
I am not looking to debate....just sharing my thoughts on Dent.
Later
Thank you,
Cheatah
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