“CNC Routing Business Plan Summary” or “A Cut Above!”

20131031054506121I mentioned in my first blog post that I’d purchased a CNC routing machine, the Shapeoko 2, Friday August 29th. It is all part of a mission to become self-sufficient economically. I have devised a strategy to act as a wholesaler to a specific set of clients and sell at a flat-rate. Those wholesalers will then sell to their own list of clients from a catalog that I will provide on a website for free to all agents. They will log-in and each image will have a serial number based on the order by which it was uploaded, thus making it unique (if inconvenient to remember, alas).

To give you a taste of what sort of work I intend on creating, I’ve got some thumbnails to OTHER PEOPLE’S WORK. I take NO credit for this, and will link each image to the source for fairness. This is the sort of stuff that my (3-axis) router can manufacture, and the sort of stuff that I’ll be selling.

cnc-woodworking-projects-11I’ve been studying HTML, CSS, PHP and MYSQL for a while now, and will prepare the order-taking website myself on my own web-space. Each agent will have to log-in with a unique username and password and place an order. They will simply type the code for the piece they want, #123 for example, and the quantity, 14 units. They can plug in as many of these as they like, each on it’s own line of the form, and the list grows as they add items. They will then have a little form where they can plug in a confirmation code for an interac E-Transfer (the kind available at ALL online banking web applications). Interac e-transfers are instant and only cost a couple of bucks. When, say, 14 basic items would cost $350.00, what’s $3-$4 for the transaction? I then receive an email from each order request and will complete them in the order that they are submitted. I think it’s a pretty sweet system. I can code a prompt that can print invoices, do all my math for taxes, shipping expenses, the works! It’s also all run by MySQL code and can be heavily encrypted, so it’s all safe and secure as I can reasonably expect for a small-scale operation.

20131226103811875I envision a situation where I have ten agents, just ten, island (The island-portion of Newfoundland, for example) wide. Those ten agents, in order to justify it being their sole source of income would need to make something like $4,000 per month. Assuming they buy at $25.00 and sell at $50.00 (for the sake of math), that means they’d need to sell 160 per month, or 40 per week, that’s just 5 or 6 units per day.

Island CarvingTo summarize for those I’ve lost (likely myself once I re-read this)… I am painting a picture where each of ten local (provincial) agents sells 5 or 6 carvings per day, at a profit equal to their investment. That would earn them $4000.00 per month, and $48,000.00 per year, as a self-employed business. Not bad! That’s each person, gross income. Each of them will earn the profit that I’d make off each person. They do all their own advertising, marketing, accounting, I only do my own. Now, I have ten agents. EACH of them, buying 5-6 “units” (remember that a unit is one square foot of product, separate or in a larger piece) per day, for $25.00 each. 10 agents mean about 55 units per day, earning me $1375.00 gross. Daily. Boils down to about a half-million per year ($500,000.00) Gross income.

Assuming it takes a single machine 30 minutes to engrave/carve/route a single square foot, and I can buy machines that can do a 4×8 sheet of work at a single set-up… that’s 32 square feet. So TWO machines, properly fitted and kitted-out to handle the volume, could manufacture 64 units per 8-hour day… That’s if I can find ten agents interested in making a living selling these units and only selling five or six units per 24-hour day.

Shit, for that matter, I’d be happy with just one.

This is the plan, at least, we’ll see how the fall-season goes with the Christmas shoppers. As near as I can tell, I’ll have the only CNC Woodworking Router on the island, though I could very well be mistaken. I do know that I’ll be the only one in the area, and am, actively seeking people to buy from me wholesale (since it’s WELL below market value, just check ebay, etsy or amazon!) and resell at the market value. It reduces my overhead and makes making a living a HELL of a lot easier for people in larger towns with vast networks of friends.

Spread the word!


One thought on ““CNC Routing Business Plan Summary” or “A Cut Above!”

  1. Pingback: “CNC Routing Machine” or “Shapeoko 2 Joy” | Widdershins Joinery Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s