This article has 3 great proven ways for increasing the money you make with your woodworking business. You may implement one or more as it suits you. But all 3 methods are interlinked as well, so they have the most impact if implemented together.
#1 Get exclusive with the wood projects you make
As a one person woodworking business what would you prefer… Doing lots of work and making a good amount of income? Or making less Projects and making even more money? Seems like a no-brainer right? And yet not many people understand this principle. It's the principle of exclusivity.
Build exclusivity in your work and you will be able to do more by actually doing less.
Let's start with a simple example.
Let's say you make 100 wood crafts for $10 each with a profit of 50%. That means you will earn $500 after selling 100 of them. Now what if you can make 10 crafts sell them $400 each and end up making the same amount of profit? You are probably thinking that the hundred dollar project will be bigger and more complex and take the same amount of time or even more so as compared to the smaller crafts worth $10. You are right, But only to an extent.
Obviously the $100 wood project cannot be the same as the $10. But you do not need added complexity and size to sell certain craft for more money.
Yes, the $100 craft has to be more substantial but the higher selling price has also got a lot to do with workmanship, quality of material and… branding.
Let me give you a real life example of a product, that is a result of these 3 factors. You can purchase a good Fountain pen from several brands. But if you buy a Montblanc it will cost you at least 10 times more than most good pens. The reason for this is quality, workmanship and just as importantly, branding.
I have used pens from Montblanc and I can assure you that I can find a pen that writes just as well for 1/10th the price. So why do people buy a Montblanc and pay so much more money? It is because they think they are buying the best . And that has a lot to do with branding too. It's like the Rolex of fountain pens. Most of the people have heard of Rolex watches and they also think that it is the ultimate luxury brand in watches.
Speaking of a Rolex, the most expensive watch that a person can wear are custom made watches designed by expert watch makers. Many people who loves their accessories and are watch connoisseurs wear these watches. These watchmakers sometimes make a single match in one year. Now that's being exclusive!
So you need to take away two things from this….
Fore mostly, you don't have to build bigger and more complex projects to sell them for more money and profit. You can build exclusivity with your materials, workmanship and better design. You can also look at high profit niches for wood crafts. There are some crafts that will automatically give you a higher return on investment. Items with some recreational feature or comfort benefit apart from being merely functional generally can be sold for more profit. This could actually be method number 4 for making more money with working. Choose your woodcraft wisely…
The second thing I want you to take away is understanding the power of branding. Branding is everything from choosing a name for your business to the kind of packaging you do and it is the message you communicate about your product to the customer.
Demanding more money from the buyer can be difficult even when you have something exclusive on your hand, unless your brand image tells the buyer that you are professional, exclusive and expensive. Branding has the power to communicate a message about your business to the potential buyer.
There is a reason why craft stores are able to sell your projects for double the price. It is the brand power of the store. The crafts gain value just by being in a professional setting. Not to mention that luxury brand image attracts bigger spenders as well.
Read: Seven steps to easy branding. So do some branding for your woodworking business. It will pay rich dividends.
Since you are going to build less and more exclusive items you need to find the customers who will be interested in buying. Building niche wood projects means building special crafts targeted at a small but more responsive and interested audience.
Branding and exclusivity are closely linked to niche marketing.
Let's talk about that for a minute.
#2 Work in a woodworking niche.
The meaning of niche is something specific, different or special. It is the opposite of broad or generic.
Making wood crafts is a broad category. However, making only wooden tables is a niche.
Working in a niche is profitable because of two reasons. Since you are selling a very specific product, any promotional method or advertising campaign becomes very effective in drawing only those people who are specifically interested in what you are selling.
For example, people who are interested in wood working in general are less likely to buy from you as compared to people who are specifically interested in buying a wooden chair.
Secondly, you begin to sell to a smaller section of people but these people are more responsive and loyal customers. So you don't have to struggle so much to convert them to sales.
Choosing a niche for your woodcraft has to do a lot with your own strengths, skill sets and interest. In such an expansive field like woodworking where an infinite number of projects are possible, choose something specific. Specialise in making something that matches your expertise and personal interest. It can be a single item like wood cutlery or chairs or a broader niche like making garden furniture.
Concentrate on this niche and try to come up with fresh ideas and innovative designs. Creating original and innovative designs will further strengthen your presence in the niche. Start building woodcrafts in your chosen niche and build a brand around it. Which brings us to the third thing you can do to make more money with your wood projects.
Create a great brand image….
#3 Build a brand image for your woodworking business
What is creating a brand image all about? When you are known for making something or delivering a particular service you have created a brand image for yourself. That is a simple explanation of course. But you want to make something great and have a good brand image associated with your business.
Why is branding important? Because it associates certain qualities about you and your business in the minds of the people. Branding makes you and your business look good, reliable, trustworthy and professional. That's the reason why the biggest companies spend billions on promoting a brand image alone. Why a good brand image makes you more money..
It is about building trust and presence in the mind of the customer. There are many ways to develop a brand image and you can work on it by following these seven simple steps to branding.
The first step is usually keeping a business name, which can also be your personal name, and promoting that name. You also want to give out some sort of a message about your business with your branding efforts. As a woodworker, you probably want your business name to stand for qualities like high quality of material, workmanship, durability, design etc. By promoting this message you enhance your brand power.
In short, branding will make your woodworking business more memorable, more trustworthy, professional and noteworthy in the eyes of the customer.
One of the most important outcomes of creating a good brand image is a higher perceived value of your wood project.
You could be making the same craft as before but the buyer will be willing to pay more money for it. The reason is simply that of reliability and trustworthiness. Most buyers will associate and believe the claims of higher quality and reliability when these come from a business with good branding. This is a very important point for a new buyer.
So these are three important tips to maximise your woodworking income. We hope you find them useful. Do use the comments section to share your experience and opinions with us. We wish you all the best.