Holly wrote:
> I don't know what sort of profit margin spinning wheel manufacturers
> have, but I doubt it's all that huge. It's a limited field with lots of
> competition.
I cannot speak to the profits the manufacturers are making, but I can speak
to the "profits" of your local retail shop and I'm willing to throw out the
numbers. On spinning and weaving equipment and accessories the wholesale
discounts we are given are 30-40%. Nowhere do we make those 100% and 200%
markups like "regular" retail. And on top of that we have to cover costs
of shipping (which are rising all the time, whereas recommended retail
prices haven't risen).
My husband is my tax accountant and after figuring in the costs of
DOING business - heating, electricity, office expenses, etc., etc., he
informed me last year that my profit margin on my retail business is only
13%. I was horrified. I work ALL day long and well into the evenings, and
all weekend (with no vacation) to run this farm and small fiber business
and do NOT draw a salary - all of any cash flow goes directly back into the
business and running the farm (feeding the sheep, fencing, purchasing more
retail stock, etc.) so at the end of a year to hear you only gleaned 13%
after all that hard work is pretty depressing.
I wouldn't change what I'm doing because I love my farm and animals and
being home with my children, BUT, folks, small fiber businesses are NOT
getting rich off spinning wheel sales!! Plus, if we try to buy in stock to
have wheels on hand for you to learn to spin on and try out wheels, and
then you go buy on the internet to save the 6% sales tax or because
somebody else drops the price...... (add to that I have never charged for a
spinning lesson and often spend 4-8 hours teaching somebody how to use a
wheel - and give them free wool to learn on and loan them videos and books
and even loan wheels out for free)......AND in order to compete with the
internet businesses, we all have to offer free specials and usually most of
us are giving away anywhere from $25-$50 in free merchandise.
So before you run around trying to save that extra $20 because you
think we're ripping you off by sticking to recommended retail prices, think
about this - would you work this hard to keep the fiber arts alive?
Laurie
--
THE LAVENDER FLEECE
http://www.lavenderfleece.com
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