A Sneak Peek at the BIG BRIDGE CITY SALE…

February, 3rd, 2011

As mentioned in a previous post, we have a couple of new projects that are at least a year or two away that have to be funded. I thought it might be helpful to share how a new product comes to be…

Using the Jointmaker Pro as an example, we went through 27 digital prototypes before we built working prototypes, of which there were 8. Each of those prototypes were $2500 to $4K each. The patent process ate $24K. There was about 40K in dog and pony shows before we had a single sale. So you see, it adds up real fast. Add in our staff time and the number balloons up to around $250-300K. That is a dinky number for a big company and a really big number for a small company. With our next production run (pre-orders will begin sometime this month) we will break even, three years after we launched.

Now we are moving on to another idea that is almost as complex and as mentioned, we are going to fund it by clearing out existing inventory. And this is why reading this totally awesome and worthless blog may be of big benefit to the Drivel Starved Nation.

When our “ON SALE” page gets updated tomorrow afternoon, there is one piece of information that will be missing, and that is the quantity available of the items on sale.

I mention this because there will be one mother of a deal and that involves an HP6v2 package I am putting together for those of you who have yet to add this remarkable plane to your shop. There will only be 50 of these packages and this is your early-bird tip regarding a nice juicy worm–50 of them to be exact.

Sales are something else. Our very first warehouse sale in the 80’s was unbelievable. It opened at 10 am on a Saturday and I arrived at the shop around 8am to make sure everything was in order. There were already 150 people in line! It was crazy.

We are going to reach a point where sales are a moot point here, we have been building-to-order for the past four years and have no intention of going back to a model where our warehouse is full of tools. So, if you like great deals, and who doesn’t, it all goes live tomorrow, Friday Feb. 4 around 4PM Pacific time.

Lastly, for those of you interested in rare and beautiful tools, we have three of these left–they will not be on sale, #’s 22, 35 and 43.

-John

PS: Oh, I forgot. I promised a Sneak Peek. $65 will get you one of these if you remember to check in early. $15 will get you one of these AND one of these… and there is a maximum $5.95 flat rate shipping for all orders.

37 comments on this post:

  2. John,
    I think it’s good to remind people how much it costs to bring products like these to the market. Most people who have never run a business have no clue how much you have to invest. They see something expensive and assume that there is a huge profit margin attached to it. They don’t realize that the $5 hammer that bought at China Express probably has a much higher margin than the $50 hammer they bought from a quality toolmaker.

    The growing trend of made to order products is going to be next big revolution in quality.

    You guys are doing it right. Just keep making tools and I’ll keep buying them.

  3. John,

    Wow, looks like the retreat was very productive. So, when will you be sending Michael, Natasha, and Brenda on their own two week work retreats? I can just imagine with all that productivity, the company would be unstoppable. I’ve heard that they do their best thinking in warm climates!

    Out of curiousity; did you work on the CT-18, or should I just email Peter and ask him?

    I can’t wait to see all of the great deals coming our way, I’ll be checking the blog and “sale” section daily!

    -Rutager

  5. David,

    Thanks for the intelligent response. I suspect most of the DSN understands your insightful observations regarding margins. “In America, as long as it costs less than $20 bucks, nobody complains.” -Chinese mfg. comment made to me regarding pot metal drill bit sets sold by the millions to USA companies.

    -John

  6. I second what David said. It’s interesting to see how much patented designs cost. No question your tools are well designed and it shows in the number of prototypes. I love looking at your tools and watching the videos. I often laugh at how rediculously well the tools work, such as the video showing the new bearing JMP sliding tables where they return to the start on their own. Keep up the great work!

    PS: I was going to leave tomorrow morning for my first holiday in many year, but might have to delay that…

    Chris

  7. “There was about 40K in dog and pony shows before we had a single sale.”

    I know. As an Argo ATV dealer, we are expected to exhibit at nearby shows, which can cost thousands in booth rent, plus travel, meals and sundry expenses. I attended a show in Nebraska last year that cost $3,600 just to rent an unimproved 30’x50′ outdoor lot for three days! Then I had to get there and camp out.

    It’s a great hobby, being in business.

  8. Alex;

    I agree, most people don’t know how much it costs to be successful in business. When we go to WIA, and add up the expenses, it turns out that we are paying about 400 dollars an hour to exhibit. There is a reason the trade show business is (for the most part) on it’s heels.

    Thanks for sharing.

    -John

  9. The didact in me want to point out that your point is “moot,” not “mute.” Unless, of course, you don’t want to verbalize your point! Or want to put it in your brass instrument. Or…

  12. All,

    I just went to the sale page and did my part to make the next tool a reality. I didn’t order the HP-6 bundle since I already own all of it, but John still is trying hard to sell me one, because one of the ads on my gmail page that showed up with my order conformation was an offer for a $1500 loan; no kidding! Sorry John, nice try though.

    -Rutager

  13. You folks are crazy. We swamped the server and have all kinds of unintended consequences here. Oh well, kind of fun really. I would say more, but gotta go.

    Thanks to all.

    –John

  14. The HP-6v2 bundle was just too good to pass up. I’ve been intending to buy it for some time and could never quite figure out which soles to purchase. Today I didn’t have to choose! Good luck with those new tool ideas.

    Todd

  15. I did my small part for the cause. Thanks so much for offering this opportunity. Like Rutager, I have amassed the entire HP-6 set and then some, but seriously thought about it for my kids in 10 to 20 years. Speaking of kids, the zero glare rules are great for them to use in school.

    Mike

  16. I did my part for the next tool. My credit card literally melted a little.

    So for those of you who snagged the HP6v2 bundle, congratulations, you’ll be happy! But you kinda have to make a trip by the sharpening page to get the hones… grab them now so you don’t have to wait.

  18. Yeah, did my part as well!
    Now let’s see if any of the upcoming tools can take shavings as thin as my card 🙂
    Got the HP-6, All the JS..And a stainless HP-7

    And some rulers, PV..

    Thanks for that great sale!

  19. To the Bridge City Crew,
    Thanks for the opportunity to pick up so many amazing tools, I did my first order and had to come back for 2nds!! I will miss these warehouse sales but prefer the new business plan so BCTW will forever stay a heritage brand and made in the USA. This made my day (and weekend…but tomorrow is my first day of the Steelhead season, so it might get even better if I hook one).

  20. I couldn’t pass up that HP6 bundle as well; been planning on purchasing that this year anyway.

    Quick question for you on the profiles: For those that are currently offered only in the old style, (corner bead and corner cove), is there a plan for future runs to make these V2?

    Also, now that 50 of us will be sporting our new HP6 bundle, any chance at a honing bundle?

    Thanks again for offering such a great deal, I’m a bit at fault for your server issues on Friday as I kept hitting the refresh button on your sale page.

    My only regret is that I won’t be able to play with my new tools before I leave for the sandbox; heading to Iraq next weekend; if there’s not a decent internet connection, at least I’ve set my Bridge City purchases on autopilot!

  21. Dave-

    No plans for a honing bundle, but they are the way to go.

    Regarding the early profiles, they all fit the v2 body and we need a minimum 150 orders to pull off the tool-less run and that might be doable. I will look into what we can do regarding an upgrade run.

    Good luck on your tour and hurry back.

    -John

  22. No worries John, I’m still high off the my HP6V2 bundle purchase.

    Just wanted to check on those honing guides before I pulled the trigger on those as well.

    Anything I can bring you back from Mesopotamia/Babylon?

  24. I admit to swamping the server. But I did buy HP6V2 big bundle and a few other things.

    How do you recommend sharpening the profiles that do not have hones? Fore example the corner bead and the cornice profiles.

  25. Charles :
    Thanks for your patronage!

    We should not be out of hones, so I will look into this on Monday. If we are, we will make more.

    -John

  26. I too could not resist the HP6v2 big bundle. I have one HP6v2 and needed a hand full of profiles and found it easier to click one item than several… heh. I’m not sure how long I keep myself fooled with that being sound logic.

    But now I can keep one as a dedicated chamfer plane or something.

    Also couldn’t resist the rules and the square bundle… or that dozuki saw with the adjustable depth stop… or… I better just stop now. The part of my brain that loosely concerns itself with finances just awoke from it’s snooze.

  27. For all of you guys who took advantage of our Super Buy sale and are fearful of spousal whiplash, how many times have you heard this;

    “Honey, look at how much money I saved!”

    Now it’s your turn. Flowers might help too. (I can’t believe I just wrote that…)

    -John

  28. To avoid spousal whiplash I checked with my wife before purchasing the bundle… She told me to go for it. Truth is, she has a bunch of HP6v2 related projects waiting for me to start.

    Now if I could just figure out how to dimension stock faster without a powered jointer, planer, or table saw, I might actually get some larger projects done. I keep thinking that there must be some jig for the Jointmaker that would help me with this. 😉

    Todd

  29. John: once the new made-to-order scheme is fully in place, will users of tools with consumables (blades, irons) be out of luck barring a new run?

  30. No, we intend to keep consumables in stock. Plane irons are something we generally don’t consider a consumable, but we do overrun them.

    John

  31. Yeah, I broke down and got the big bundle too! After getting a few small things on Friday night, I convinced myself over the weekend that the price was outstanding and the additional capabilities that it’d bring to my shop were too many to pass up.

    And “No”, my wife doesn’t know about it or about BCTW for that matter. All in the name of marital bliss!

    Thanks for the sale John!

    Any wild guesses as to when the next JMP production run might occur?

  32. We will begin the pre-order process for the 2011 JMP run some time this month. We are in the process of confirming our pricing. To make sure you are on the notification list, indicate so at the bottom of this page.

    –John

  34. John,

    Can you give us a report on the sale? How many bundles were sold and how close are you to having the prototype capital you were after.

    If you are still short of funds, I would be glad to call Fred and badger and cajole him into buying more tools!

    -Rutager

  36. “Can you give us a report on the sale? How many bundles were sold and how close are you to having the prototype capital you were after.”

    It must have gone well. My big bundle order is still being processed.

  37. Charles;

    The sale was fun! We had 50 bundles, and there are a couple (3-4) left–I think. Sometimes, particularly over the weekend, our warehouse and website don’t always handshake like they should. Lots of new stuff in the pipeline thanks to all of you Drivel Starved tool consumers. Lot’s of other great deals went too. So I hope I am right and your order gets fulfilled, otherwise we will notify you via email that it was sold out. We are leaving the other items up until the end of the month or until gone.

    I can share that I am working on one idea that is so different, so new, and to me, so exciting that I hope it works! I do have my share of lengthy visits down rabbet holes occupied by unfriendly snakes, so we’ll see.

    Thanks again to all!

    -John

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