LumberJocks

Selling Your Wood Work Tutorial #2: Market Research and Competition

  • Advertise with us
Blog entry by Michael1 posted 10-06-2011 04:46 AM 6090 reads 3 times favorited 13 comments Add to Favorites Watch
« Part 1: Introduction: What is the art of selling? Part 2 of Selling Your Wood Work Tutorial series Part 3: Three catagories of sales and the sales cycle »

MARKET RESEARCH AND THE COMPETITION

Your shop is set up and you have your product in mind. You have the motivation and encouragement from friends and family that somewhere out there someone would want to buy your work. But where do you begin?

In order to successfully sell your product you must have a target market. It is not realistic and actually foolish to think that everyone needs or wants your product. On the surface this should seem logical if you are creating hand turned bowls on your lathe. Of course not everyone is going to want a salad bowl set turned from the finest blanks of walnut your supplier is stocking. But take something like residential kitchen cabinets. Everyone out there has a kitchen if they live in a habitable place. It is required by building code that there be a kitchen, with a sink and counter top space on each side of the sink and at least one side of the stove. But that does not mean that everyone out there is going to need a kitchen up grade. Some already have their kitchen and some that need a remodeled kitchen might be making do with what they have. How do you research the market to find if what you are making has a market potential and will appeal to enough people to buy?

Many sales books out there will say that you want to “create” the demand for your product. This is easier said than done. Sure if you have a load of money to spend on advertising and commercialization this might work. However; for most woodworkers, conventional advertising is just too expensive to be realistic.
For some products market research is easy. Say for a custom cabinet shop, you can go to your city or county website or extension office and obtain pertinent information on building and construction based on permits issued for new construction and remodeling. You can find out the number of new homes in the area being built and their reports usually itemize out the numbers based on the months so you can tell the “busy” season from the slow seasons.

In casket making, I get my demographic profiles from the State Department of Vital Statistics. This breaks down the number of deaths by county and I can tell the age groups of those deaths. I take these numbers and factor in the cremation rate of 30% and multiply this by my estimated market share 3% and I know what my sale potential is for the year allowing me to know what type of inventory to keep. For instance, and not to bore everyone with vital statistics, but by these reports I have determined that if I were to produce and stock 10 caskets that were sized for a child (by industry definition is a person aged 2 – 14 yrs old) and I had 3% of the market share for my county, It would take 50 years to sell those 10 child sized caskets. Therefore it is not feasible for me to stock a slew of child sized caskets.

That’s fine and dandy you say, I don’t make kitchen cabinets and am not in the funeral supply industry. Where does that leave the craftsman who makes small gifts and novelty type work that shows off my creativity like small turned bowls, clocks, furniture, picture frames whatever?
These types of items are a little harder to determine a statistical demand for. Especially when it comes to novelty type items that people might purchase simply because they appreciate the beauty of the craftsmanship but don’t have burning need for the item as they can get along without it. There is still a great deal of demand for these types of items. It is just more difficult to measure.

For starters, take your product and brain storm all of its uses and how you might market it and through what avenues. Don’t be narrow minded here. Take for example something simple like sandpaper. We are all familiar with it. We all use it to sand the wood in our shops. But how many uses can you think of for common grit sandpaper other than sanding out blemishes and smoothing wood? I have built some shop made push blocks for the joiner and glued sandpaper to the face to grip a board to keep my fingers away from the cutter head. I have seen some make their own thickness sander and use a sanding belt for the feed table to pass the stock through their machine. The people at 3M have devised a way to put it on a sponge and market it as an easy way to sand molding and contoured work. I have a set of Rockler Bench Cookies. One day I had a makeshift assembly line going and needed an extra set. Not having time for them to arrive by mail order, I cut out four plywood disks and glued sandpaper to each side and had another set of bench cookies. There are probably a dozen more applications for sandpaper than what I have listed here.
My point is with the product that you make, how can it be adapted to serve an additional client base than what you are currently targeting? Here is another real world example. Let’s say you make small trinket boxes or jewelry boxes. I would be willing to bet that the variety of boxes I make and sell every week are very similar to those that many of you might be making. The difference is, rather than having a traditional lid; my boxes have a fixed lid, and are accessible by unscrewing the bottom, and are sold to funeral homes as cremation Urns. I do the same with segmented wood turnings, vases etc.
Years before I ever started working professionally in wood, I built a walnut jewelry box as a Christmas present for my sister. It was a standard box, with a hinged lid and pull out tray. In fact I was a novice and couldn’t seem to get the mitered corners to align right so I hid the joints with a small turned accent column on each corner of the box. She loved the box. Little did I know back then that years later I would take the exact same design, place a divider under the tray to seal the bottom compartment from the lift out tray, call it a cremation urn and market it as an urn that had a small tray to store keepsakes like jewelry, or a wallet of the deceased. That design is now my largest seller in urns and I make them a dozen at a time and am constantly back logged with orders for them.
Am I telling everyone to go into the funeral supply business? Absolutely not. Truth is it is a difficult industry to break into and sell to. What I am saying is take your product and look at all the ways it can be marketed. Can it be used by more than one group or can it be presented in a different light to another group? I am not saying you have to come up with 100 different uses for your product, but if you were to come up with just one, you have the potential to boost your sales.

With this I would like to shift gears to the second part of this blog and make a brief comment on the competition. Sure there are a lot of other woodworkers out there that are selling products similar to what you make. Some might be right next door to you and have larger and better equipped shops. In the funeral supply industry some of my major competitors are very large publicly traded companies on the New York Stock exchange. If fact; one particular competitor, is considered one of the largest producers in the world. I won’t mention their name, as I haven’t obtained permission from them to name them in this blog. However; to give you an idea of their production volume, they produce more caskets in a single day than I can produce in ten years. I have a humble 30X40 shop where they have three manufacturing plants that are approximately 800,000 square feet a piece. But do you know what? I manage to compete with them. And as intimidating as it may sound this particular manufacturer is not my largest competitor.
Who is my largest competitor? You might be surprised to find that the same largest single competitor I have is the exact same single largest competitor that you have as well. In fact “OUR” largest single competitor is also the same largest competitor my barber down the street has, as well as the gas station, grocery store and everyone out there selling a product or service has to compete with. Who is this SINGLE LARGEST COMPETITOR? No, it’s not Wal- mart, or Costco, or the Chinese imports. Our single greatest competitor is The Status Quo.
What is the status quo? This is what your prospect is currently using before you came along. It might be the guy with the larger better equipped shop than you. It might be someone who has a smaller operation than you have. In fact it might be nobody at all. They might not be using your product or service by anybody and sometimes that is a harder sell to break into because it involves getting people to see a need for your product.

The main reason people do not buy a particular product or service is they see no reason to change the Status Quo.

What is the point here? My point is not to worry about the larger shop, or big mass production competition that you might be facing. No matter how large your competition seems to be there is a way to sell what you have to offer if it is presented in the right light to the right prospect. What your main focus needs to be when you attempt to sell is to sell yourself and your capabilities and bring to the attention of your prospect that what you have to offer is unique and something they will benefit from compared to what they are already doing or using.

I hope you all have enjoyed this blog. Tomorrow we will discuss the three groups of sales and the four sections of a sales call.
If anyone has any questions, feel free to message me and I will reply to all.
Thanks for reading my blog and I hope it is enjoyable as well as educational and beneficial

-- Michael Mills, North Carolina, http://www.scicaskets.com



13 comments so far

View Greg..the Cajun Wood Artist's profile

Greg..the Cajun Wood Artist

5218 posts in 2031 days


#1 posted 10-06-2011 05:58 AM

Michael, you have alot of great and valuable information and I also appreciate all the time and effort you are putting into this blog.
Thanks!

-- We all must start somewhere in our journey of doing what we love to do.

View tomd's profile

tomd

1789 posts in 2493 days


#2 posted 10-06-2011 06:06 AM

Thanks for all the effort you put into this blog, it is very interesting and most of it new to me.

-- Tom D

View jimp's profile

jimp

207 posts in 2484 days


#3 posted 10-06-2011 06:18 AM

Thanks for putting this blog together. I look forward to reading future parts.

-- - Jim, Carroll, OH

View shipwright's profile (online now)

shipwright

5228 posts in 1520 days


#4 posted 10-06-2011 08:02 AM

Good blog Michael.
In my experience the most important concept is the one you hit right off the bat in the first blog, namely that what you are selling, first and foremost , is you.

-- Paul M ..............If God wanted us to have fiberglass boats he would have given us fiberglass trees. http://prmdesigns.com/

View FlWoodRat's profile

FlWoodRat

732 posts in 2632 days


#5 posted 10-06-2011 09:52 AM

Michael.

I agree with most of what you have to say. As far as identifying one’s ‘big.gest’ competitor, all one needs to do is look into a mirror. If one see’s the “I can’t do this” reflection.. that person has already identified their biggest competitor. When one sees the “I can do this” reflection the rest is easy.

Yes folks.. Believing in yourself and portraying that attitude to a potential client goes a long way toward closing a successful sales

-- I love the smell of sawdust in the morning....

View BritBoxmaker's profile

BritBoxmaker

4422 posts in 1759 days


#6 posted 10-06-2011 03:22 PM

Having read both parts one and two I will be following this series closely. As someone who is starting to believe in himself and his work more and more as time goes by and things happen I now find myself in a position, mentally and physically, to start to do something about selling.

-- Martyn -- Boxologist, Pattern Juggler and Candyman of the visually challenging. http://www.theartofboxes.com

View Jorge G.'s profile

Jorge G.

1526 posts in 1198 days


#7 posted 10-06-2011 04:39 PM

Another good one, keep them coming.

-- To surrender a dream leaves life as it is — and not as it could be.

View CalgaryGeoff's profile

CalgaryGeoff

937 posts in 1204 days


#8 posted 10-06-2011 08:07 PM

Great posts. I’ve enjoyed reading them and found them educational. As mentioned anyone can do it with determination, market research and mainly believing in yourself. To date all of my projects have been gifts for family and friends. They are now talking up my work and directing paying customers my way.

-- If you believe you can or can not do a thing, you are correct.

View SASmith               's profile

SASmith

1626 posts in 1710 days


#9 posted 10-07-2011 01:00 AM

Thanks for taking the time to put this blog together.
Looking forward to the next installment.

-- Scott Smith, Southern Illinois

View Michael1's profile

Michael1

403 posts in 1382 days


#10 posted 10-07-2011 01:46 AM

Thank you all for your support on this. Selling is a passion as well as a necessity for me as it is required in order for me to make a living. It makes me feel good that other people are able to benefit from my posts.

Thanks Again

-- Michael Mills, North Carolina, http://www.scicaskets.com

View Marco Cecala's profile

Marco Cecala

188 posts in 2756 days


#11 posted 10-08-2011 03:57 PM

Thank you for these posts. You are spending a lot of time on them and we can all benefit from your experience.

View degoose's profile

degoose

7049 posts in 2077 days


#12 posted 10-18-2011 10:12 PM

Well I for one … will be following this blog… I find your views refreshing and intriguing…

-- Drink twice... and don't bother to cut... @ lazylarrywoodworks.com.au For lovers of all things timber...

View WoodNuts's profile

WoodNuts

74 posts in 1671 days


#13 posted 10-26-2011 10:47 AM

Thanks much Michael, good and needed info.

-- ...there's a fix fer dat...

Have your say...

You must be signed in to post the comments.

DISCLAIMER: Any posts on LJ are posted by individuals acting in their own right and do not necessarily reflect the views of LJ. LJ will not be held liable for the actions of any user.

Latest Projects | Latest Blog Entries | Latest Forum Topics

HomeRefurbers.com

Latest Projects | Latest Blog Entries | Latest Forum Topics

GardenTenders.com :: gardening showcase