CU Woodshop - $10,000 to join?

[Joe Jensen]

It's an interesting concept, but for me I'd want it to have the next tier of equipment, stuff I can't fit in my shop.
1) big widebelt
2) Big Euro Slider saw
3) Door clamping rack
4) Dedicated vacuum bagging station

Stuff like that. The owners lounge seems like a good idea.

Concerns would be everyone wanting to work weekends. I saw like 6-10 benches. Also, I have 600 sq ft and I think I really want more like 1500. If they have 1/2 of the 15,000 ft store, how many folks can comfortably work in 7500 ft?

[Narayan Nayar]

Sounds like confirming the facts and finding out more about the shop are in order.

[Mike Hall1]

$10,000 for .2% of the business values the business at 5 Million Dollars.

Mike

[Phil Thien]

Any of you guys that want to can "buy into" my shop for only $9k initial and $900/year.

[george wilson]

I hope it isn't like the timeshare scams where they take everyone's money,and declare bankruptcy.

[Ken Fitzgerald]

Phil....I'll see your 9K with $8K and $800 annually.

[Steve Clardy]

10 grand. Whhhhooooooaaaa

[Chris Damm]

Good luck getting your investment back. There was a store in Grand Rapids, MI that tried that business plan (I believe it was much cheaper)....they couldn't get enough members to keep it open.

[Eric DeSilva]

The Woodworkers Club attached to a Woodcraft store in the Washington DC suburbs has a fully equipped shop with high-end tools (including a Sawstop and a PM66). They charge $329 initiation plus $79 a month for unlimited access (open about 70 hrs a week). Not cheap, but much more reasonable.

Heck, in the DC area I keep seeing a CL ad for a cabinet maker willing to rent shop space and use of his tools (very good collection) for under $1000/mo. That is just sharing with two people, not an entire club. Can't see $10K fee at all...

[Anthony Whitesell]

There was a working club that had a gym-type membership ($x to joing, $y per month). It closed when the insurance rates went through the roof.

I wonder if by being a part-owner of the equipment/store if it re-classifies the users in terms of the insurance and thus reduces the insurance premiums?

[Greg Magone]

I agree with the other posters who don't think the $10,000 is a great investment. That's a lot of money unless a guy is doing woodworking professionally, and there are a lot of posts and articles that talk about how it's tough to make a living at woodworking.

However, I'll (politely) disagree that I could outfit a nice workshop for $10,000. I think most people on here were thinking about the equipment and tool cost, and I sure could fill an existing garage with nice woodworking tools for $10,000. But the darn building is expensive - in my area, unfinished garages cost around $25/square foot. The $10,000 would only build a 1 car garage in the Seattle area. I imagine this one is probably heated and well insulated, which would be a nice plus.

So, I think to build a detached garage and fill it with decent new equipment will probably run me around $60,000. That makes a $10,000 investment look a lot more attractive.

[Thomas Syrotchen]

By offereing you ownership, they may be limiting your ability to make a claim if they go out of business. Brand new business that seems to be catering to a high end customer in this economy? Last time I looked Walmart's business was growing, and the high end dept stores were loosing money left and right.
Not sure if you caught the fact that the $10K is tied to the retail store as capital to purchase inventory which would indicate they are having a hard time raising capital. $1 Million is probably fairly close to their entire inventory. New business failure rates are high, and quite often the ability to raise capital is a huge reason for failure. Unless I just needed to get rid of $10K, I think I'd pass. At least I would let them get past the 1 year point and see if the business model is working. Even then, I'd want a a look at their balance sheet before I'd make that kind of risky investment. Finally, that sector of the retail market in Chicago is extremely comptetive. I know Champaign is a little outside the market, but you still have the same big players there.

[Anthony Whitesell]

When you put it that it does seem more attractive. Don't forget the $1000 per year. The $1k/yr would probably come out to a wash when you factor in heating, electricity, and taxes. On the other hand, $10k would make a nice down payment on a garage and some tools. $60k spread out over 10, 20, or even 30 years wouldn't be that bad.

The plus side to your own shop is that all the tools are yours and you can leave the project setup from day to day and work on it at any time of the day or night. On the other hand, renters don't often have a place at all for a shop, which would make this a definite plus.

I would say the real question is: Are there enough people around that can't have a shop and that do have $10k to make this work?

[Joe Jensen]

I have some affluent friends and over the years there have been many serious conversations on pooling tools and leasing a bigger space. The idea is 3-5 partners get a small industrial space. Something with 3 phase power. With more space we could free up garage space, get more room than a garage offers, and have 3 phase power. We could also sell all the cabinet shop 3HP class machines, and get some large quality used industrial machines.

Now would be a great time to buy machines. I've passed on several nice 14" sliders for $6-10K, several SCMI 24" planers for under $4K, big shapers, etc.

The challenge comes in how to handle damage, and consumables like wide belt paper and cutters. I have around 100 Bosch and Whiteside router bits, 25-30 shaper cutters, and maybe $1000 worth of sawblades. In a pooled shop situation that would have to be solved.

In the end, buy in and selling of a share is the sticking point. Also, in my area we would be spending $4-5K a month for rent and insurance.

[Gary Lange]

Yea, they get a few to pay the $10,000 and when they have all the money they can milk they disappear and then reappear someplace else and start over again.

With $10,000 you could hit Grizzly and get your own tools and rent a garage or building someplace to set it up if you can't do it at home.