The content below was posted by Nick Engler on SSUG.ORG. That site is currently experiencing a security "bad hair day." I was able to obtain this by entering the term "cache:www.ssug.org" in a google search. I removed the referenced Dayton Daily News article text to keep things short but it is available online as previously noted.
r/ Mike Carr
Nick on March 8 said:
Those of you who are interested in Shopsmith's financial health may wish to read an article that was published in today's Dayton Daily News. It's not especially accurate. As usual, the reporter got a good many of the details wrong. But the overall jist of the article is on the money. We've had some tough times, and we are taking steps to correct the problems. I'll let you read the article, then comment on some of information it contains.
(text of Dayton Daily article removed)
The reasons for Shopsmith's financial difficulties are multifaceted. Yes, it's expensive to demonstrate the machine and to educate potential owners that the system works as well as -- and in some cases, better than -- stand alone tools. But that's not the only difficulty we're facing.
Power tools sales are down across the board, not just for Shopsmith but for many tool manufacturers. Some of this is due to market glut, particularly with used tools. Schools are closing their shop classes and disposing of their power tools as teachers prepare today's students to become "knowledge workers" in an "information economy." (I privately wonder who's going to build the desks and chairs and computers for all these knowledge workers?) Because Shopsmith has been very active in education, many of these schools have one or more Shopsmiths to dispose of.
And because a Shopsmith is a legacy tool -- they just don't wear out -- it's hard to sell new when there are so many used avaliable. We find ourselves in the same predicament as Packard in the late 40s. The daggone cars lasted too long, this reduced new car sales, and Packard finally though in the towel, defeated by its own exceptional craftsmanship.
If a used tool glut weren't bad enough, we are also faced with the reality that there are fewer new woodworkers looking for tools. The slow death of shop class is one of the symptoms of the unfortunate fact that today's Americans are not as handy as they once were; many no longer actively engage their environment with the make-it-fix-it attitude of their parents. We are, in fact, discouraged from making and fixing things by the economy we have built. You can no longer tune your car with a timing light and a socket set; you take it to a someone who hooks it to a computer that tells him what components need to be replaced. In our own woodworking craft, it's often cheaper to buy ready-made furniture and cabinets than it is to buy the wood to make them.
So it's harder to find buyers for new tools. And if that weren't enough, our historical outlets no longer work as well as they once did. Early in the 50s, the company learned that the machine couldn't easily be explained in an advertisement or commercial. It had to be demonstrated. So we began setting up at shopping malls and demonstrating it. This remained a mainstay of our marketing efforts into the 90s. But the clientele at malls has shifted and the ground is less fertile than it once was. And mall management, by and large, is less receptive and cooperative as they once were. We've begun to demonstrate at home centers, but the results so far have been mixed.
All of that having been said, I'm optimistic about Shopsmith chances for survival and growth, as are a lot of my friends here at the company. There are two reasons for this. The first is that the "Plan B" folks mentioned in the Dayton Daily News have an extremely good history, they seem savvy about today's marketing methods and consumer culture, and they are interested in every little detail. Unlike many other management consultants, they are hands on with the product. (It's a shame that the DDN reporter didn't take the time to investigate Plan B or talk to one of their team; the report might have read much differently.)
The second is this -- and I think many of you would agree with me -- we have all been watching a Renaissance in tool savvy and the make-it-fix-it mindset over the last few years -- and it is picking up the tempo. New people entering the craft may be declining at the moment, but it will turn around shortly. This rebirth is being powered by the very tools we are all using right this very moment -- the Internet. For those of you who doubt this, check out a site called
http://www.makezine.com. It will blow you away. What is more important is that the information you and I need to reproduce the wonderfully crafted pieces posted at makezine and dozens of other places on the Internet is available at lightspeed -- from the Internet. You no longer need a shop teacher; some very good teacher/craftsmen are now accessible to those who want to learn the craft over the web. With the continuing advances in distance-learning technology, teleconferencing, and web telecasts, the next generation of woodworking mentors will be the world's best craftsman, and their students will be more creative and more prolific for it.
The fact is that if the Shopsmith has to be demonstrated to interest the consumer, and the consumer has to be educated to make a decision to buy, then this is a very good time to be in the Shopsmith-making business. It's never been easier or cheaper to reach interested people. What we here at Shopsmith have to do is shake off some of the old marketing habits that are no longer working and take advantage of the new and better communication channels that are opening to us. And we are doing just that.
There was a line in a movie recently and I can't remember its title, but the sentiment fits: "Don't just hope for a Renaissance; expect one."
With all good wishes,
_________________
Nick Engler, Director
Shopsmith National Woodworking Academy
