backorders.

[jeeperjohn]

What is the deal SS with sending out special offer e-mails and not having items listed in the e-mail in stock? I am dealing with this for the third time in as many orders. What gives?

[ldh]

I suspect SS must be practicing FIFO LIFO and that can grind on a customer, but they do come through. My Kreg fence is finally on its way. SS has never let me down, yet the wait can be irritating.
ldh

[Ed in Tampa]

What is the deal SS with sending out special offer e-mails and not having items listed in the e-mail in stock? I am dealing with this for the third time in as many orders. What gives?

Jeerjohn
This has been explained. Shopsmith like everyone is trying to cut overhead and the fat. By doing so they often find that they are selling out some of the stock. Then because the economy and business is down when they go to suppliers, they are seen as a small order and small orders tend to be serviced last.

I think Shopsmith is faced with a very delicate balance, they must stock close as they can to the exact number they need. If they guess under they are faced with potential backorders, if they guess too much then they are saddled with extra stock that quickly drains operating capital.

Many places charge your credit card while you wait for backorders, SS doesn't. I usually hate mail order but I will my positive experiences with SS make a good case for mail order. Yes I'm also waiting for some items on backorder but I know they are coming.
Ed

[mtobey]

While I am a new SS owner, I am one heckuva cheerleader for the tool and the company. This market is as "niche" as it comes in woodworking power tools. I have had to wait as well, but they have always come through, and I believe that I have been TOLD THE TRUTH about why a shortage and expected fulfillment. It doesn't take a "rocket surgeon" ( milk out my nose first time I read that in another post) to feel the herky jerky of ebb and flow of dollars in the company. They are well worth supporting- they support us in every way they can. My $.02.mt

[jeeperjohn]

Fair enough. But it you don't have something in stock and have no idea when you will have it available for delivery why would put it on sale?

[john]

Interesting discussion.

In today's economy, we are used to having big stores stocked with every concievable item, big and small, to be carted off on a "cash & carry" basis for instant gratification. Of course this has led to stores carrying large quantities of low quality goods (read: made off shore) as it is expensive to carry good quality inventory, and many only surviving for a short time due to cost and low margins.

In times past, stores carried a few samples of major items and almost everything was ordered for later production and delivery, especially when there were major sales events. Stores were profitable and manufacturers made money as there was a minimum amount tied up in inventory. Everyone survived and was reasonably happy.

I have often thought that a return to some of the old ways is what is needed to return some order to the economy and protect jobs and the environment. Besides as we get older (there I go again) aren't we supposed to be more patient?

Maybe ShopSmith has the right idea.

Just a thought.

John

[fjimp]

It seems all of us are new enough at this internet purchasing game that we forget just how many people are reached by a single ad on the internet. The opportunity to sell a huge number of any given item is far greater than in the days of a retail store or catalog orders. I find that patience is become a huge virtue. Jim

[Nick]

Just for the record, we don't put things that we don't have in inventory on sale. In fact, we're careful to check our inventories before a sale is announced. When I plan a Sawdust Session, I have to check that there is an inventory of the tools we feature. As was pointed out earlier in this thread, I have addressed our backorder situation in other places, but perhaps I should add some info at this time to keep you informed. Remember that we are a small company and have had to impose tight inventory controls to remain viable. We practice "just in time" manufacturing and don't maintain a large inventory of parts or assembled tools. That said, there are several different scenarios that can result in backorders:

1. We receive more orders than anticipated for a product and either run out of the product or the parts to build it. This happens when we underestimate the demand created by a sale, a Video Shop Tip, or a Sawdust Session. Because we are phasing out old marketing methods and developing new, our prognistications are not what they should be -- but we'll get better.

2. Because we are a niche marketer and generate only small orders, our suppliers don't always consider our orders a priority.

3. At least one of our suppliers -- Emerson Electric Motors -- has moved their manufacturing to Mexico. They have experienced problems with their Mexican plant that have delayed shipments to us.

4. Some of the tools we sell, especially those that sell in small numbers, are made to order. We don't keep an inventory; any order appears as a backorder until we put it together, usually within two week's time.

5. Several of our products are made by other companies -- Incra, Ringmaster, Sand Flee, etc. On occassion, these third parties experience fullfillment problems over which we have no control.

We were surprised at how quickly this situation evolved. Thankfully the steps we took prevented it from getting worse. At the present time, reducing the backorder log is our number one priority at Shopsmith and we have begun to make headway there, too.

With all good wishes,

[timster68]

Out of curiousity - what items are actually made (if any) at your Ohio office?

[Nick]

All the major Shopsmith tools with the exception of the Sand Flee are manufactured at our plant in Dayton. We build some of the major accessories, such as the mortising attachment and the lathe duplicator, others are made companies like Incra, Kreg, and Ringmaster. Small items such as chisels, bits, and blades are private labeled. Amana, for example, makes our saw blades and dado blades with the Shopsmith logo.

With all good wishes,