On A Roll !!!!

It has been a while since I have posted on LJ’s since my layoff from work or as it was called unjust release I have had the time to study what has been the killer to my business, one of the three factors have contributed was lack of ample time to market properly now that I have the time this is no longer an excuse. the second one was marketing to the wrong people as it has been a eye opener finding out the real people to sell to!!! the third one was a less obvious but dirty problem called Economic strangulation which is the purpose of this blog. Economic strangulation can affect any business that is a manufacturing,distributing, or retail type. It is when a supplier raises prices unfairly to choke off competition to another business they supply. Let me explain using my business as an example. Here in Akron we have approx 9 woodworking businesses active at any given time so I was getting my lumber from a Lumber yard in the next county I was buying 5/4×6”x8’ western red cedar at 8.00 a board 2 years ago as I started to make these chairs in quantity to sell the price went up to 10.50 then to 11.52 a board raising my material cost for my Adirondack from 48.00 to 69.12 add screws, glues, and finish it goes up to 89.12 or $90.00 now add 2.5 hours (good conditions) at 35.00 per hour 70.00+ 90.00= 160.00 now I found out he was supplying a competitor doing similar chairs at the 8.00 per board price. making his chairs at 140.00 give or take. Now I found a place in Washington state to ship a lift of 240 board @ 7.54 per board shipped to my door HA that bring my chairs down to 120.00 let’s play. I also found hardwood out of state to be cheaper shipped to me so I am on a roll to fly under the radar sometime the problem is not all our fault but it will ultimately be ours if we don’t do something about it. BTW most of the local yards do this in my area. I will be posting more in the future on how things work out :)

-- Proverbs Ch:3 vs 5,6,7 Trust in the lord with all thine heart and lean not unto your own understanding but in all your ways aknowledge him and he shall direct your path elmerthomas81@neo.rr.com