Shopsmith Financial?

msmith1199 · Post by **msmith1199** » Thu Oct 27, 2011 12:31 am

I'm new to this forum but I've owned my Shopsmith for about 27 years now. It largely set unused in my garage so it's like brand new. I retired last month so now I'm setting up my woodshop and going to start using the Shopsmith. I've been trying to find all the parts and ordering replacement parts and I have ordered several things from Shopsmith and received them in a timely fashion. Just this evening I was doing some Google searches and located information about Shopsmith going out of business. There were articles going back to 2007 saying Shopsmith would basically be out of business any day. As of the end of 2011 they are obviously still in business.

I didn't see any current articles on the status of Shopsmith. Are they going to be around for a while longer?

dusty · Post by **dusty** » Thu Oct 27, 2011 5:56 am

msmith1199 wrote:I'm new to this forum but I've owned my Shopsmith for about 27 years now. It largely set unused in my garage so it's like brand new. I retired last month so now I'm setting up my woodshop and going to start using the Shopsmith. I've been trying to find all the parts and ordering replacement parts and I have ordered several things from Shopsmith and received them in a timely fashion. Just this evening I was doing some Google searches and located information about Shopsmith going out of business. There were articles going back to 2007 saying Shopsmith would basically be out of business any day. As of the end of 2011 they are obviously still in business.

I didn't see any current articles on the status of Shopsmith. Are they going to be around for a while longer?

Given the state of the economy, you know as much as anyone about that. To get a reliable answer to that question you would have to know an awful lot of information that simply is not public. However, I think they are now on the come back from some very difficult financial times.

From my point of view, all appears to be well. I keep ordering items and they keep shipping them to me. What more could you ask.

Check them out on Facebook. What you see there is all new. Not something that a failing company is likely to do.

I do believe they are starting to take advantage of the social media. They can also be seen on uTube.

Welcome to the forum.

ss50th · Post by **ss50th** » Thu Oct 27, 2011 10:01 am

msmith1199 wrote:I'm new to this forum but I've owned my Shopsmith for about 27 years now. It largely set unused in my garage so it's like brand new. I retired last month so now I'm setting up my woodshop and going to start using the Shopsmith. I've been trying to find all the parts and ordering replacement parts and I have ordered several things from Shopsmith and received them in a timely fashion. Just this evening I was doing some Google searches and located information about Shopsmith going out of business. There were articles going back to 2007 saying Shopsmith would basically be out of business any day. As of the end of 2011 they are obviously still in business.

I didn't see any current articles on the status of Shopsmith. Are they going to be around for a while longer?

Although the information is minimal some can be found from their ticker symbol "SSMH". It is listed as an OTC stock.

mountainbreeze · Post by **mountainbreeze** » Thu Oct 27, 2011 10:16 am

I recently placed 2 orders to Shopsmith 4 days apart and there was a difference of 338 between the order numbers. If there ordering system uses sequential numbers I'd say they are doing pretty well.

anmius · Post by **anmius** » Thu Oct 27, 2011 10:24 am

ss50th wrote:Although the information is minimal some can be found from their ticker symbol "SSMH". It is listed as an OTC stock.

It is my understanding that "Shopsmith Inc." is no longer the official name of the company making and providing equipment under the name "Shopsmith."

JPG · Post by **JPG** » Thu Oct 27, 2011 11:04 am

SS Inc. took bankruptcy(ch 11?????) a couple of years back(about the time the facility fire sale was held) and the building sold and partially leased back. AIUI they reformed as RLF tools, Inc. They retained the Shopsmith trademarks etc.

They have indeed come out of that much leaner and stronger from this viewpoint. The long wait for some parts seems to be abating, and there has been development activity(abrasive papers and Power Pro ...) that is a sign of better health.

At this point I do not think there is cause for alarm.

Back when the 'fire sale' was held, I began stocking up on spare used parts from E-bay as a hedge. I have since used them to create another machine.

msmith1199 · Post by **msmith1199** » Fri Oct 28, 2011 5:04 pm

I hope they are able to stick around. I have yet to find anyway to have so many tools in so little space.

In looking at the way they do business, I'm thinking they need to improve their marketing. It looks like the only way they are selling these things are online. I remember going to home shows and seeing them demonstrated, but I haven't seen a Shopsmith at a show in years. I saw an article that said those were company employees that were going to the shows and selling the machines. Maybe a better method would be to offer either a franchise type system, or a commission sales contractor type position. For example, pay me say $300 per machine I sell and I wouldn't mind going to shows and setting up a booth and selling them. I don't sell any I don't get paid, no cost to Shopsmith. I'm sure there are a lot of retired guys like me out there that could do these types of sales.

Ed in Tampa · Post by **Ed in Tampa** » Fri Oct 28, 2011 9:10 pm

msmith1199 wrote:I hope they are able to stick around. I have yet to find anyway to have so many tools in so little space.

In looking at the way they do business, I'm thinking they need to improve their marketing. It looks like the only way they are selling these things are online. I remember going to home shows and seeing them demonstrated, but I haven't seen a Shopsmith at a show in years. I saw an article that said those were company employees that were going to the shows and selling the machines. Maybe a better method would be to offer either a franchise type system, or a commission sales contractor type position. For example, pay me say $300 per machine I sell and I wouldn't mind going to shows and setting up a booth and selling them. I don't sell any I don't get paid, no cost to Shopsmith. I'm sure there are a lot of retired guys like me out there that could do these types of sales.

Great Idea except what happens when an unethical fellow comes along and promises the moon to sell a Shopsmith. The fallout from that could in fact destroy the company. You don't want someone that isn't working for you to be selling anything you care about.

billmayo · Post by **billmayo** » Fri Oct 28, 2011 9:22 pm

msmith1199 wrote:I hope they are able to stick around. I have yet to find anyway to have so many tools in so little space.

In looking at the way they do business, I'm thinking they need to improve their marketing. It looks like the only way they are selling these things are online. I remember going to home shows and seeing them demonstrated, but I haven't seen a Shopsmith at a show in years. I saw an article that said those were company employees that were going to the shows and selling the machines. Maybe a better method would be to offer either a franchise type system, or a commission sales contractor type position. For example, pay me say $300 per machine I sell and I wouldn't mind going to shows and setting up a booth and selling them. I don't sell any I don't get paid, no cost to Shopsmith. I'm sure there are a lot of retired guys like me out there that could do these types of sales.

I investigated this idea a few years ago to even talking with a lawyer friend who did this type of work. The liabilities that Shopsmith could incur with this type of independant contractor arrangement at that time could far exceed Shopsmith's net worth. The various insurances needed would require many Shopsmiths to be sold just to pay that one bill. The total fees exceeded any fee doctors paid then to protect themselves. Shopsmith was not interested in this type of relationship at that time. Now with family and former employees, I would have no idea how they are supporting the demo people these days. Maybe someone could ask at the next demo about insurance and liabilities involved. I doubt if you will get an answer but still worth asking.

Ed in Tampa · Post by **Ed in Tampa** » Fri Oct 28, 2011 9:41 pm

Bill
I would think the Demo'er would also have to have himself protected from non performance and injury liabilites also.

I could just see some guy buy a Shopsmith after a slick demo and find out it also requires a degree of skill to accomplish some of those demo feats.

In today's courts he would probably prevail unless the Demo'er had a signed paper saying he was forewarned that if he had two left feet he wouldn't be able to work the machine.