Do you budget your tool purchases?

reible · Post by **reible** » Sat Sep 29, 2007 2:30 pm

And if so, how are you doing this year?

I figured I was a bit over budget and with more shopsmith sales and other companies seasonal offers coming I checked. I find I'm already over budget by almost 20%!!! So no more new toys for me for the rest of the year.

I use quicken so I did a little research and found I had ordered tools from 11 places this year. The distribution was also interesting. And is as shown:

Shopsmith 34%
Company A 30%
Company B 12%
Company C 6%
Company D 5%
Company E 4%
Company F 3%
Company G 3%
Company H 1%
Company I 1%
Company J 1%

So I guess shopsmith should be happy.... those darn sales they have been having got me a couple of times. Those specials accounted for 40% of my shopsmith spending (only 10% of that was a none planned purchase). Now they need to stop them until after the new year so I don't miss out on too many things. (When checking over the last few years my shopsmith percent is actually down from it average of 36%.)

So how are you doing?

Ed

dusty · Post by **dusty** » Sat Sep 29, 2007 4:49 pm

Actually, I have a budget but I try not to pay it much attention. If I did, I'd have a lot more storage space available in my shop.

I sort of did what you have done, ed, except that I made my spreadsheet up showing dollars spent vs "budget $". It was something of a shocker so I never printed a hard copy.

I might leave a hard copy laying somewhere where it should not be.

fjimp · Post by **fjimp** » Sat Sep 29, 2007 6:03 pm

I feel certain there must have been years that I lived within a budget on tool purchases. Very honestly I cannot remember when. Once I retire that will by necessity change. That must be why I keep putting of retiring.

Jim

charlese · Post by **charlese** » Sat Sep 29, 2007 7:00 pm

reible wrote:And if so, how are you doing this year?...

...So I guess shopsmith should be happy.... those darn sales they have been having got me a couple of times...

So how are you doing?

Ed

Sorry! Don't work off a budget - just a monthly look at the bank statement. If it goes up - that's good. If it goes down - that's bad.

Like you, the Shopsmith sales have got me a couple of times. Almost bought a 520 upgrade a couple of times - and now the upgrade sale has been extended until Oct. 15th. Don't think I'll recover from ($) our recent trip by then - so I'll be safe for a while. Especially, as we are planning more trips in the next couple months.

Prior to the "sales" I thought I had plenty of tools and all I'd ever need are supplies and replacement parts. Still think that way, but..... hate to miss a good sale!

john · Post by **john** » Sat Sep 29, 2007 7:36 pm

First, Chuck: glad to see you back. I hope the vacation was enjoyable.

As to Ed's question, I don't budget but when I retired thought that I would try to make my woodworking a hobby business that would at least pay for itself. My thinking was if I wanted to spend money on tools and wood to make things, I needed to recoup the cost so I could continue to do more of the same.

Ha, Ha fat chance! This is my fifth year of keeping close track of expenses and revenue (from craft shows and requests). The first two years I averaged about a $600 deficit. The deficit was due to tool and accessories purchases. I told friends I could look at these results two ways, either I lost $600 on my business, or it cost me $600 to enjoy my hobby. (golf would cost more!) I prefer to think in the latter context.

The closest I have come is to have a $25 deficit. This year, thanks to some heavier than normal tool purchases of which several hundred dollars was with Shopsmith, I am about $1600 in the hole so far. I will participate in a couple of fall craft shows but if trends hold up expect to still fall about $800 short.

Next year I will have to be more frugal. Selling more is not much of an option as I like to make a variety of things and don't mass produce, and do not spend hours on end in the shop.

So far, it is still a "fun" hobby.

John

Bruce · Post by **Bruce** » Sat Sep 29, 2007 8:02 pm

John,
Doug Reid, the former TA instructor, said in his class that most woodworkers don't charge enough for their work. Maybe you should look at increasing prices. After all, hand made, or in this case Shopsmith made, items can demand a higher price than something mass produced in some factory. In essence, even though you may be selling multiples of a given item, they are essentially one-of-a-kind works of art.

Bruce

ryanbp01 · Post by **ryanbp01** » Sat Sep 29, 2007 9:37 pm

Yes, I do budget money for my tool purchases. The arrangement I have with my wife is that extra money I accumulate through things like working athletic events, supervising test administrations and working with homebound students (I'm a teacher) is put aside for the "Power tool to be named later". That way I don't cut into our household budget (at least too much).

I know I don't charge enough for what I make. But I don't do woodworking for the money since I am still learning and improving my skills every time I'm in the shop. When I see someone's face light up when they get something I have made, that is all the "payment" I need.

ryanbp01 · Post by **ryanbp01** » Sat Sep 29, 2007 9:42 pm

Yes, I do budget money for my tool purchases. The arrangement I have with my wife is that extra money I accumulate through things like working athletic events, supervising test administrations and working with homebound students (I'm a teacher) is put aside for the "Power tool to be named later". That way I don't cut into our household budget (at least too much).

I know I don't charge enough for what I make. But I don't do woodworking for the money since I am still learning and improving my skills every time I'm in the shop. When I see someone's face light up when they get something I have made that is all the "payment" I need. The day I begin to perceive woodworking as work is the day I will look into another hobby.

a1gutterman · Post by **a1gutterman** » Sat Sep 29, 2007 11:10 pm

I do not budget my tool purchases. Don't get me wrong; I am not independantly wealthy:( . I buy the tools that I need when I need them, i.e., when a project comes up that requires a tool that I do not have, I check with SWMBO and get approval, then buy the appropriate tool. Lets see, what project can I do for SWMBO that means I need to buy that overhead pin router......

scottss · Post by **scottss** » Sun Sep 30, 2007 11:15 am

I do budget but when the wife says she wants 2 end tables like the hall table I just made and 2 nightstands and a new bed well I say do you know how many mortise and tenons that will be. She said get what you need to do it. Then when I got the mortise and tenon pkg she says are you going to be happy with that or do you think you need the opr. Well after seeing the usefullness of the opr its on the list. The problem around here is twice a year we have to pay the govnor what she demands and thats right now. As far as pricing I think most of us don't charge enough that would make it more like work. The armoire I made earlier this year is worth according to a local woodworking store $4800. Now if I was to sell it could I get that. I am being comissioned to make one though and not sure what to charge, its for old friends.

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