Posted: Sat Mar 10, 2012 10:03 am
algale wrote:These totals are not too far off from what I got when I priced all new Grizzly stuff. I still think, however, that you are giving up a great deal of functionality, so I don't see buying all new stand alones as being a much better deal than buying a new Shopsmith.
Your second option, however, where you pick up a used Shopsmith for $300, raises another question that I haven't been able to answer. Why would anyone buy a new Shopsmith today when you can get a used one for a fraction of the price? Now, I haven't seen too many of the 510/520s in the price range of $300, but I do see them between $900-1500 with some regularity in my part of the country which is less than half the price new. And the fact is, these machines are so well built that they are often virtually as good as new or can be brought to new condition for not a lot of money. So why buy new? That's Shopsmith's big problem, as I see it. These machines can last forever with minor maintenance and there's an easy source for used machines and spare parts between ebay and Craigslist. This means that today's Shopsmith is in effect competing with Shopsmith/Magna products from the 1950s to the present, or in the case of the 510/520s from the 80s and 90s to the present. That's an unwinable battle. That's probably why Shopsmith developed the PowerPro --it is something that makes the machine new again and for which there won't be any competition from the distant past -- at least for a while.
Al
You are correct to look at this from the company's perspective. In my opinion they have several more things they can do to make a big demand for their new machines in the coming years and I think it would be foolish to think that they are not working quietly, planning to create added demand (uniqueness). It would also be foolish for them to outline way ahead what those plans are. For example, if they were to announce that next year they are coming out with an all new model with an "improved" PowerPro mounted on a new base that included all manner of fantastic storage, was 100 times more solid and cleaned house and washed windows, BUT no current units could be upgraded... how many potential customers of the current PowerPro would go into holding mode?
BTW, a whole new base with storage that would work as an upgrade would be a nice option to see come out. (hint, hint)...
I am struck daily at how much more impressive my old Mark VII looks just sitting in my shop than the Mark V's. Not that it is an unbelievably major improvement mechanically, just that it looks damned impressive.
Back to company perspective... The first thing some folks need to get past (you listening Ed?
When I had my shoe shop (which I will soon reopen on a part time basis) I had to make a choice as to where I wanted to be in the pricing scale for services. I could have planned to rebuild 500 pair of shoes a week for $1 profit each or I could have planned to rebuild one pair of shoes a week for $500 profit each. Reality tends to fall somewhere in the middle...
Part of the choice is determined by type of input cost. If the input cost is purchasing (and you have the money) it is usually best to lean toward volume. In my case with the shoe shop most of my cost was my labor/time/skill so I always wanted to lean toward higher per unit returns since my labor/time/skill was limited.
Shopsmith is limited by how many people would be interested in their unit at any price so they must operate as a high per unit profit producer. The knock-off's chopped price a lot and claimed improvements but they are "ALL" gone now. That should tell you a lot.
Would I buy a new one at $4,000 ? Probably not but I am an old geezer farmer getting down toward the short rows in the field (though buying a new one is still possible). If I were 40 years old I would buy one in a minute and look at it as a long term investment in on-going pleasure.
DANG! that hurt. I just fell off of my soapbox.
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