Why You‘re NOT Making Money: Wood Working | 7 Business Tips by Cuttin it Close
Today we are going to discuss some of the possible reasons why you are not making money as a woodworker. This list has been compiled based on research with woodworkers running successful businesses and struggling ones alike. The reasons are in no particular order, are equally important, and will be based on your scenario. So be sure to think of what applies to your business and your location as you read.
Reason # 1: Not Focusing on a Niche.
Most woodworkers pride themselves on the ability to create anything. However, even if you can build anything, it doesn’t mean that you necessarily should. The most successful companies focus on a target market in order to gain ground in this industry.
Consider the following points to find your target market, create your niche, and start making money.
- Find an industry/group you want to cater to.
- Offer them specific products for their industry.
For Example:
If you are interested in promoting your products by partnering with real estate agents, you need to think of their needs. One excellent practice is to create small items (charcuterie boards, signs, or other easily carried objects) that real estate agents can provide as a closing gift to prospective buyers. It doesn’t make sense to provide a table or bookcase, as you will lose more money on these objects as promotional items. Additionally, they take significantly longer to create than relatively easily replicated small items.
Benefits of Focusing your Business on a Target Market
- You can hone your tool selection to incorporate only those that you need
- You will learn the ins and outs of your target market over time.
- You will gain the trust of your target market, which can lead to referrals.
If your attention is diffused through several different markets, it can be difficult to form meaningful connections and networking opportunities.
Reason # 2: Death by Choices!
Giving your customers too many choices is a trap many businesses across multiple industries fall into, and woodworking is not exempt! Too many options actually scare people.
Giving your customers approximately 2 – 3 options will help keep them focused on the purchase.
For Example:
With the charcuterie boards mentioned above, if you have a choice of 10 colors, 20 sizes, and 3 edges, you are giving your customers a total of 600 variables to choose from. But if you only have 2 size options, 3 colors, and 1 edge. That means only 6 variables, which is much more manageable.
Fewer default options will lessen the struggle for you to prepare the things you need, and can actually help you boost sales. It also allows you to pre-make your item. If you have too many options it will prevent you from being efficient as you will have to do the orders on the spot and purchase a wider variety of materials to accommodate all those choices.
(Keep in mind that you can also offer additional custom choices at a premium if that is of interest to you and your business. This allows you to provide flexibility while making the effort worth your time!)
Reason # 3: Not Understanding your Market
This reason is a very common one in every industry. As we’ve mentioned in previous articles, profitable items in certain cities might not be profitable in yours. Consider switching your woodworking designs to fit your customers’ needs. If changing your designs, products, or customization options does not improve sales through your local market, try to do it online.
Reason # 4: Not Writing Down your Previous Projects, Plans, or Methods.
If you didn’t write down every plan, project, or method you’ve ever used it does not mean you won’t be successful. However, if you do not record the process somewhere, you will likely forget all the details of how you made it or why you did it that way.
In the 1st year of your business, you might think this tip is not necessary at all, but the success of your long-term business may rely on it. This way, if you get the same project down the road, you will have your formula and you won’t have to worry about making it through the trial and error stage.
Remember that you don’t need to physically write the process down if that doesn’t appeal to you. Recording the process with video or even just talking yourself through the process in a voice recorder can be sufficient. It’s all about finding what works for you!
Reason # 5: Making What you Think is Cool but not What the Customers really Want.
Most woodworkers pour their heart and soul into their projects with high-quality woods, carvings, and more, but sometimes there’s no market for it. This can be tough for some people to hear, but sometimes it turns out you are just the only one who is excited about it and your customers just aren’t interested.
What you see on the internet and social media is really cool, but it can be unrealistic and impractical to make it for your business and sell for a profit. Just because something goes viral on social media and people are going crazy for it doesn’t mean it will work well for you. Those products work for the brands who post it, but their success is about their customers’ wants and needs and not yours.
Reason # 6: Focusing on the Wrong Details
The majority of woodworkers are perfectionists and sometimes that’s part of the problem. By being a perfectionist, you will always want to do too much stuff that your customers are not willing to pay for.
For Example:
A customer just wants signage and doesn’t care if it is made of maple or pine. You won’t benefit from adding additional flourishes or details that they didn’t ask for and are unwilling to pay extra for. Remember to ask your customers what they want and what they actually care about. If they have specifics related to finish, material, colors, or anything else, focus on those aspects. If they don’t care then don’t worry about it. It will just gonna take you too much time without earning you a profit.
At the end of the day, if your customers are happy, that’s what you are looking for. If you have made your customers happy with a product that you consider 99% perfect, don’t worry about the last 1%. You’ve done your job, and done it well!
Reason # 7: Saying Yes to Everyone
Though it can be hard for some people, you can’t just say yes to everyone; you have to say no sometimes. This is especially true if you are a woodworker because you want to do everything you can for everybody. Yes, you and your tools are capable of anything, you have the passion, the drive, and the creativity to make everything, but you have to be careful with your yes’s and firm with your no’s.
Only say yes to things that fit your niche, that you are equipped to handle, and that have a reasonable potential to make you a profit.
This means that you will likely need to say no to your friends and family sometimes. However, after saying no to these things long enough, your business will start to take off, and you can establish an understanding of what your time and effort are worth. Eventually, the people who are asking you to create projects for them at a discount or for free will stop, and begin to respect you for what you are worth.
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