Can this be serious!

[doug45601]

Was told by a reliable source (not connected with ShopSmith) that the ShopSmith 5-in-1 tool provider is in the process of “quietly” preparing to close their doors. They have been doing this by reducing inventory, and employees to the point of basic operational needs. This is to prevent a customer panic and instill confidence with their current customer following. Also, potential MK-V buyers (new customers) may avoid the product if they feel there will be reduced or weak future for support after the sale.
Completed and ready to sell tools large such as the MK-V itself are packaged and warehoused for projected sales throughout the new year, however, tool accessories such as the Pro-Planer are assembled on an as-need-basis (has never been a high volume seller). Jointer castings are also shelved and not many are fully assembled until orders are received. Bandsaw castings as will as others, come from off-shore facilities and recently have became of problem in obtaining in a timely manner for ShopSmith to obtain. Unexpected supply and demand for the popular bandsaw has created a backlog causing order-filling shortages. ShopSmith is working hard to meet demands of this popular tool accessory but due to the fact that there has been a reduction in the suppliers incoming shippments coupled with increased aluminum prices from off-shore suppliers, the company allocations are limited. Allocated funds for purchase expectations have fallen short.
Price increases and economic weakness leaves ShopSmith in a troubled situation where affordability to purchase, and in turn provide products for current and new customers at an affordable price has fallen to the point where little or no choice if left for the company to survive under its current operational standards.
ShopSmith’s one and only selling tool was the “Show and Tell” product on the streets, shopping malls and road shows. Not anymore! ShopSmith once had retail stores and even a factory store front. Not anymore! Shopsmith once had Hands On Magazines. Not anymore! ShopSmith once had Woodworking classes. Not anymore!
ShopSmith is not going to be able to recover. Cost cutting efforts have actually caused some of the in-house failures. No advertising, no sales! Simple as that! No catalog for current customers, again, no sale! Who knows about their product? It’s not being marketed and the company is slowing shutting down to allow inventory reduction without an outright bankrupt.


Don’t shoot me, I’m just a messenger and not the author.

I have been asked not to disclose the author nor anything about the author so I won’t

[dusty]

I guess it all depends on how much you trust your reliable sources.

I have information from what I consider a reliable source, also not to be disclosed, that Shopsmith has taken a five year lease on space, in the building they once owned. The space being that which they now occupy.

If they were quietly preparing to close the doors I would not think they would take a lease on the space.

The fact that they are no longer have a mortgage on the entire building indicates to me that they are tightening their belts but not closing the doors.

Our reliable sources seem to be in conflict.

[Ed in Tampa]

doug
What is the point in all of this? If they close what can we do about it?
If they stay open what can we do about it? Speculation is just that speculation.

I know in the past Shopsmith has been approached by serious buyers and they refused to sell. I would think if closing was as close as you claim they would seek out those buyers and try to salvage as much as they can.

I can understand you not wanting to devulge your source but you have to ask yourself a few questions, does the person really know or are the guessing? Is the claim fact or is it attempt to cause SS grief?

You mentioned all the things Shopsmith doesn't do anymore. Well your right but have you noticed the economic climate in this country? There are many companies that don't do what they did before and many more that don't even exist today. For Shopsmith to make it this far speaks a ton about their economic recovery actions to date. Similar companies are long gone by now.

So my question to you again is what is point of posting this negative post? So far Shopsmith has not charged anyone's credit card until the product is actually being shipped. There are many companies that charge the credit card immediately, so if the company fails you may have a charge but no product. Shopsmith has been very up front. They clearly explained they are have serious economic challenges, they are ethically conducting business protecting both the customer and themselves and so far they seem to be in better economic situation than many companies that are seeking bankruptcy.
So what is the point?

You know gossip and panic go hand in hand and the results are never favorable.

[baysidebob]

Reliable sources are only as good as their information. Unfortunatly most of the time when any of us have information, especially information that is not suppose to be passed along, we usually imbelish the information given us. A lot of information we pass along is speculation, not true facts. It's like the fisherman that caught the 35 lb. salmon, but when weighed it was only 20 lbs.
I just hope that Rusty's source is the correct information. I have a lot of SS tools and others items. I keep thinking that I need to start cutting back, but as another one that likes to buy tools I just have a hard time telling myself no.
If SS has a 5 year lease on the space they are in that gives me relief to know that I have another 5 years to buy more SS stuff.

Bayside Bob, Calif.

[8iowa]

Dusty and Ed have made some good points. With giants like GM, Ford, and Chrysler at the verge of bankrupcy, I can only admire how Shopsmith has been able to "hang in there".

The situation is not the same as when Magna/Yuba closed their doors three decades or so ago. The Folkerth ownership has probably produced at least a quarter million MKV's. These machines are now beginning to be "inherited" or pass on to new owners. A high percentage of them are still serviceable and present owners represent a market for parts, upgrades, and SPT's.

The Shopsmith brand name and copyright is still worth something. If the occasion would be that it passes on to new owners, it would represent some level of business activity that would be profitable.

[horologist]

Doug,
I have been avoiding these threads and don’t take this personally but…

Even the most highly placed, best informed, and magnificent anonymous source is still an anonymous source and has zero credibility in my book.

Obviously, the company is and has been in trouble for a while. I remember Nicks comment some time ago of "We are too many and not enough." and wondered if layoffs were coming.
As armchair quarterbacks with perfect 20/20 vision we can micro analyze every action past, present, or future. The truth of the matter is that none or at least very few of us have a clear idea of the big picture. Shopsmith isn’t the only company having trouble with sales or vendors and I doubt the situation will be improving much in the next couple years.
In the current market I can believe sales of the full machine are few and far between, especially considering the number of used machines available on the market at give away prices. Instead they seem to be focusing on sales of accessories and parts. These items probably have better margins anyway.

Over the years the company has gone through periods of boom and bust. I expect they are merely battening down the hatches and doing what is necessary to survive this bust.
Troy

[a1gutterman]

Whatever happens is beyond our control. My purchasing ability is in my control, but it is limited and I must be patient. I hope that SS survives and I will continue to support them as I am able. I hope that I will be able to use my SS equipment for as long as I want to, and that my son will be able to enjoy it for many years more after that. Like others have said or implied; what is the point of spreading rumers that are to the detriment of SS? Have hope. Many people, companies, governments, have survived hardship and overcome seemingly overwhelming odds. It is knot unheard of.

[judaspre1982]

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[dusty]

I'm in there for the long haul. I have indicated to my daughter and grand kids that they will one day be the owners of what is in my shop. I do not intend to pass to them either a burden or a pile of junk. To make certain of that, I shall continue to maintain that equipment in the excellent condition that it has been in the entire time I have owned it. It will servethose who move into my work area for another twenty five or thirty years.

Now, having said that, I guess I better go wax and oil the entire shop full of equipment.

I'm going to start by checking out the scroll saw. Breya reports, in Begiining Woodworking, that he has one that is making screeching sounds. There is not much that moves so this should not be too hard to diagnose. Famous Last Words.

[dusty]

To add something positive , I just noticed that this forum now has 4000 members. I know not all are active but it seems to me that there is a new member name listed almost every day. Also if you look at the most users online statistic , it was recently accomplished in Oct-08. New members in the forum shows me there is considerable interest in the SS system. The word is getting around somehow. Long Live SS!!!!!--------Dave

Wouldn't it be great if a large percentage of these new owners/forum members would log in and communicate. What a day that would be. It would certainly be a bit of good medicine for the folks at Shopsmith also just to see tangible evidence that the user base is ever growing and interested.