Any new reports on Shopsmith

[reible]

"Earlier this year, Shopsmith sent a letter to shareholders saying that company leaders had given Plan B Associates, a Chicago management firm that works with struggling companies, day-to-day decision-making power. The Jan. 31 letter said the company's goal was to increase revenue by 10 percent by March 2008 and achieve pretax earnings of at least $250,000."

It's almost March 2008.

[ldh]

Here is an idea, with nearly 3000 folks on this forum we could all kick in $100 gratis and down the road we might still be able to get Shopsmith parts and service. Shopsmith is just too American to loose.
ldh

[Nick]

Plan B is no longer with us. Their vision was to (1) revive the sales force to generate new sales and (2) find complimentary tool/woodworking/home improvement companies with which Shopsmith could be combined to produce a financially healthier entity. Neither of these endeavors was fruitful. We trained ten new teams of salesmen, set them loose, and saw only a miniscule rise in sales. There were several possible corporate partners discussed, but obviously nothing came of these discussions. Plan B left us in June 2007.

We decided to concentrate on Internet sales, since that was the only part of our marketing plan that was performing better than forecast. The video tips and Sawdust Sessions that Drew and I produce are a part of this effort. As of this date -- a quarter past February 2008 -- the number of sales is up 17% over last year at this time. The amount of the average order is lower, probably due to the general economic slowdown, but we are holding even or slightly better than even in a hostile economy. And we are 20 people lighter than we were last year.

Obviously from the discussions on this Forum, our most pressing problem is the backorder situation. Much of it is due to our "just-in-time" production plan and the low levels of inventory we maintain. We could solve this problem quickly by throwing money at it and raising inventory levels, but we are still paying for those ten teams of salesmen. We are making headway on this too, albeit somewhat slower than you or we would like.

As I have mentioned in other threads, we are also selling our building since we only use a third of it. This would raise enough capital to increase inventories and solve several other problems. We have a contract on the building and we fully expected to close and be moving stuff around in January (including the Academy). Closing, however, keeps being postponed and we continue to show the building -- I noticed Bob escorting some folks that I took as potential buyers just today.

So there you go, both the good news and the bad. Plan B didn't work, but our Internet thrust did. We have a backorder problem that will take time to solve unless we can sell an asset to generate quick capital. We have a hard row to hoe, but no one's talking about giving up. That's the news as succinctly and honestly as I know how to put it.

With all good wishes,

[edflorence]

That's the news as succinctly and honestly as I know how to put it.

With all good wishes,

Thanks for the frank and quick response, Nick. Although it is difficult to hear about Shopsmith's trials and tribulations, it is good to learn that management is still fighting the good fight.

Also, I encourage you and Drew to keep up the good Internet work...the Sawdust Sessions have been a great marketing innovation...so much more detailed than what can be presented in a demo or even a day-long seminar. In fact, I think they are so valuable that if they were offered on DVD I believe they would sell like hotcakes. How about offering a "custom" DVD...For a certain fee, the purchaser would order just those specific Sawdust Sessions s/he was interested in, which would then be transferred to DVD and mailed out. Just a thought. Again, thanks for keeping us informed about Shopsmith the company as well as Shopsmith the tool.

Ed
Idaho Panhandle
MkV 500 +/-, bs, dc3300, jointer

[reible]

Thanks Nick that was most informative.

Maybe we can all use some (or all) of our "refund checks to revive the economy", here at Shopsmith. In fact maybe it is our duty to spend say at least 10% of it here... a little math 3000 members * $60 = $180,000.

Remember it is importain to get the money spent fast and what a better way to to it then to help out shopsmith. (I think I here a fife playing in the background, perhaps it is Battle Hymn of the Republic??)


p.s.
March is "supplies month" in my new budget so make sure you guys have some velcro sanding disks in stock... not sure what else will be on my list.

[guvnuh4]

Maybe we can all use some (or all) of our "refund checks to revive the economy", here at Shopsmith. In fact maybe it is our duty to spend say at least 10% of it here... a little math 3000 members * $60 = $180,000.

Remember it is importain to get the money spent fast and what a better way to to it then to help out shopsmith.

I like the way that you think sir. Now if only you could talk my wife into it too... Upon finding out that we would be getting a check from the government I was informed that it would be going straight to paying off debt. I don't think she understands the purpose behind the check is to stimulate the economy...

Sure it might be the thing that could help us out the most, but at a time like this we have to think of the nation, dang it! (And, coincidentally, my shop )

[8iowa]

I've already "lightened" my wallet considerably helping my son to outfit his new Shopsmith shop.

Re: refund checks; maybe Shopsmith had their three for two sale too early.

[greitz]

Thanks so much for the update, Nick, things sound really promising, especially considering the trouble many other industries are in right now. I wish all company spokemen were as honest as you! Are you sure you don't want to run for public office?

I like Ed's suggestion about custom DVDs. $30 (for example) comes out of the wallet easier if you're interested in all of the subject matter, rather than only a portion of it.

Gary

[audir10]

To me it's good news that Plan B is long gone. I own 4000 shares of SS stock
and expect they will be around for a long time. The proper decisions are being
made to get things on a more even keel. Many pundits are saying that the big
winner in the tax rebate thing will be China so I guess we have to try to spend some of it on US made products. For me it will be a Sand Flee. Thanks
for the info Nick I was wondering what was going on and was even going
to call the office to see who handles "investor relations" ? Perhaps Katie
does that.

[pinkiewerewolf]

It is reassuring to a guy like me that is going to look at a used SS this weekend. I can't afford a new Mark V but I can wrangle up the money for new assessories over time. (Pro Planer, Jointer, 520 upgrade, etc...)
A portion of my rebate will definately be going to SS.

I'm taking Bus 10 in college, and I posted Nick's findings about the Plywood from China that is showing up in some of our Big-Box retailers on the class discussion group.
My instructor was impressed with the photo comparisons that Nick and Drew provided to back up the information.

The information/teaching, helpful customer service and a quality product are reason enough for me to become a SS customer for life.
You guys might even help me get an A in the class.
John