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Price Vs. Value

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In these modern times, two of the largest gripes people have when they buy just about anything are the price of an item, and how terribly built it is. We’ve all cursed a Swedish piece of furniture, or raged when a spark plug change is preceded by tearing the entire top end of the engine off just to get to them. Typically in that moment, we also reflect on how much the item cost at the time of purchase, and more often than not we regret even buying it. It wasn’t always like this however, and to be successful in business it is imperative to understand what led us to this perpetual annoyance with cheaply made stuff.

Not that long ago, the quality of most things one could purchase was substantially better than today. There is a reason old washing machines were better than new ones, why old tools were indestructible, why cars were built so solidly and would run for a million miles if properly cared for. Manufacturers of old cared much more about the quality of the product they were producing than they do today. There’s no simpler way to put it. For whatever reason, that began changing a few decades ago, and has spiraled out of control and led us to where we are today.

Where I believe it went wrong is a tale as old as time. People got greedy, and began chasing higher and higher profits. And in doing so, the quality of their products decreased. Tool companies realized if they used a slightly softer steel that was considerably cheaper to purchase, then they could increase their profit by 5% on every socket or wrench sold. So they did it. Then they realized if they shipped manufacturing overseas, they could pay 1/10th of the wages that they were paying American workers. So they did. The result of having unskilled workers using cheap steel was an inferior tool which broke easily. But the price never changed to account for this downgrade in quality. The company continued charging the same amount of money for an entirely different tool. I would classify this as not only dishonest, but also disrespectful to the customer.

People work hard for their money, and many people struggle just to keep their lights on. Far too many people go to sleep at night feeling as if they failed, because their children went to bed hungry. I witnessed my own parents go to bed without eating more times than I can remember, because there wasn’t enough food but they made sure we children ate. Were they lazy parents? Not at all. They both worked incredibly hard to provide for myself and my 3 siblings. But a blown furnace here, an unexpected car repair there, and funds become very tight faster than we can often adjust. So when the time comes and someone has a bit of extra money and they’re ready to invest in that tool, or that washing machine, or in the case of my business that butcher block, they want to know that their money is being exchanged for something of good quality. That exchange of money for either goods or a service is the most crucial calculation one can make in business.


Price is what you pay. Value is what you get.

Every business owner needs to objectively look at the value of what their customers are getting before they should ever set a price. If you set the price too high in relation to the value, nobody will buy your product. If you set it far too low, people will assume it’s cheap and, again, not buy your product. There is always a sweet spot where the price is reasonable, and the customer is able to justify the cost based on the value they know they’ll receive.

A quick example of this, as it relates to my own business: There are many companies who produce butcher blocks for the kitchen. Many of these companies use one type of wood (usually maple or walnut). Little, if any, care is taken into the creation of the block. There are even a couple of big name companies who market, quite literally, a single piece of wood as butcher blocks and charge absurd prices for them. For context, those styles of blocks take 2 cuts on a miter saw and 2 minutes of sanding to produce. Since they’re also a single piece of wood with no joints or wood glue used, they are capable of warping much more easily, as wood does. When doing market research prior to launching my butcher blocks, I asked many people what they thought of these blocks. Every single person said “That’s ridiculous. It’s a piece of wood. They’re asking how much for it?!”

On the contrary, the butcher blocks I produce are made using a mixture of many kinds of wood, both domestic and exotic. They are cut into 3/4″ thick strips, and glued together with alternating grain orientation so the board will not warp after years of washing. I hand pick every piece of wood for every board. In a single board, you could have Wenge wood from Africa, Purpleheart from the Amazon, Hard Maple from New England, etc. I spare no expense in the construction of each board design, because I understand that if I were to be spending $150, I’d expect something that would last for decades.

When I set a price for my butcher blocks, I looked at one thing above all else. What was the value of the board. I don’t mean the price, I mean what was the customer receiving. Was it good quality? Was it aesthetically pleasing? Could the customer find the same board somewhere else? How long would it last? What was the cost of the materials used to produce each board? All of these things went into my final set price. And that price gave me a fair profit, while still coming in $100 cheaper than the above mentioned single piece of wood butcher block.

This description of one of my products is not intended as self promotion. Those who are reading this most likely know who I am, what I do, and what my products are already. What I want you to take away from this is that there is a healthy relationship between price and value, and it’s a relationship that should be carefully considered by anybody who is selling anything. You must remove your bias as the one producing the product or providing the service, and be honest about what it is you’re offering. I know that I offer a quality product, so I charge what I think is a fair price for that product. If you know in your heart that your product or service is decent but could be better, then don’t set unrealistic prices. I know the idea of higher profit seems appealing, but a lifelong customer paying smaller prices is worth exponentially more than a one time customer who rides the roller coaster of regret when your goods and/or services don’t hold up.

Be honest. Be fair. Work hard to better whatever it is that you do, so when the time comes to raise your prices you can do so feeling justified in your decision and knowing that your reputation for quality will ensure your customers follow you.

Until next time Bears! Onward!

-Woodshop Bear

Business

Morality Over Money

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    There are many reasons why someone takes the scary leap into starting their own business. Maybe they aren’t happy with their salary. Perhaps they think they can build a better business than where they currently are. Could it be that they feel there’s no future in their position and they’re just outright bored? Whatever the cause is, more often than not the underlying reason revolves around the acquisition of more fiat currency. People will sacrifice paid health care, paid time off, sick days, vacation days, and job stability and security for the unpromised dream of more cash in their bank account. And this is where many people make their first mistake.

    When you operate from a place of fear (in this case the fear of not having enough money), both in your personal life and the decisions you make in your business, you are led down a road which will ultimately result in the sacrificing of your own morality in the never ending pursuit of more cash. And that cash will never bring you true happiness.

    The alternative to this soul sucking pursuit of material gain is to operate your business in a way where you are spreading good into the world. While this may seem counter-intuitive to every piece of business advice you’ve ever heard, it’s the absolute truth. When you use your business power to bring others honest, selfless joy, you not only gain a customer who’s emotionally invested in the future well-being of your business, but you also get to lay your head down at night knowing that you used your power to do good. Unlike paper rectangles or 1’s and 0’s in a computer, this will actually bring you happiness, and give you purpose going forward.

    A personal example of this from my own business is as follows. Around Christmas time of 2020, I had a customer reach out to me saying her family had experienced a very brutal year and she had only a very small amount of money to buy something for her husband, but if she was going spend it anywhere she wanted to support a small family business. She wanted to purchase one of my Deer Hunter pens, as her husband was a hunter and she thought he’d really like it. I could have very easily made the pen, sent it out, and never thought about it again. What I chose to do instead was make the pen, make an additional pen valued at $40, and send them both out with a hand written note to her husband wishing him good fortune in his future hunts. I did this in the middle of working 14hr days trying to keep up with a holiday business rush the likes of which I never could have anticipated. She received the package and was both shocked and elated, and she is now a top follower on my social media and shares my posts all of the time, giving my business tons of promotion. I lost money from my own pocket to do this small act of kindness, but if we measure good deeds in dollars, we’ve already lost everything that makes us good.

    Is my ego forever inflated because I did something good? Not at all. But my heart is full knowing that I have reached a point in my business where I can do small acts like this from time to time that bring joy to others. You’d be hard pressed to find an employee at any big box store who would use money from their own pocket to bring you joy when you’re in a trying time. And this is the fundamental difference between operating a business from a position of money acquisition compared to spreading kindness. Both the big box store and the small family business are profiting, but when the dollar collapses the store will be left with nothing, while the family business will be left knowing they did good in this world. The question you must ask yourself when running a business is where do you want to be when that day comes? Do you want your legacy to be worthless paper, or changed lives?

    Until next time my friends, Onwards.

-Woodshop Bear

Website: www.littlebearwoodshop.com

 

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Bear Trail Beef

One of those businesses with a crushing 2020 year is Winter’s Farm owned and operated by Jordan and Hannah Winters.

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For many businesses 2020 was a year of hardship, struggles and loss. For the businesses in this community however, it was the best year ever. One of those businesses with a crushing 2020 year is Winter’s Farm owned and operated by Jordan and Hannah Winters. Jordan and Hannah both spent their youth farming and started their current farm in 2015. They have provided grass fed and finished beef to their local community and have now added pasture raised pigs to the menu again. 

In late 2020 however they made the plunge and started Bear Trail Beef! Supporting our community is what we do best in the bears and like many we simply couldn’t wait to purchase a package of meat from their farm. No strangers to mail order beef we jumped on the chance to place an order excited to support a small scale farmer and family. When the package arrived even the kids were excited to unbox it! We ordered the Beartarian Basics- Mixed beef bundle It was delivered promptly, well packaged and included a lovely family photo as a thank-you.  Included in the box was 10lbs of ground beef, 2 Tenderloin Medallions, 2 Delmonico/Ribeye Steaks, 2 NY Strip, 2 Sirloin steaks, 2 Roasts of their choice (we got a chuck roast and a shoulder roast). Each vacuum sealed package of beef was a stunning deep red color with beautiful marbling. 

We have been purchasing grass fed beef for some time now and even just by the color you can see the difference between the beef from Winters Farm and the beef we had purchased. The steaks cooked beautifully to a wonderful rare to medium rare with ease. The ground beef was phenomenal and appeared more natural and unprocessed than any other ground beef we had tried yet. Everything was delicious and nourished our growing family well. The best part of the deal was knowing these animals lived a good life and that our purchase was helping to support a family like ours that was out there providing bears an essential service.

Their main goal and focus with Bear Trail Beef is to bless families with tasty, healthy, and nutritious meat, in order to grow strong heathy families and to provide access to homegrown food outside of the industrial food system. Here at the CameraBear household we would say they are absolutely crushing those goals! They are shipping to the contiguous US and you can order today at www.beartrailbeef.com . We are sure you will not be dissatisfied. 

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Learn Before You Earn

Don’t Let Your Dreams Cloud Your Vision

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Most of us long for the ability to make our own way in this life. I’d venture to guess that most people reading this article would much rather live a life of self accountability, self reliance, and self employment instead of being dependent on an employer to provide the necessary funds for them to feed their families, keep a roof over their head, and give their children a good life. It doesn’t matter who you work for, the act of being beholden to somebody else when it comes to your financial security is stressful. This is why most people start their own business. And this is also why a lot of small business startups fail.

When you hit that wall and can’t possibly work another day in your dead end, soul sucking job, you naturally start dreaming. And man are those dreams big. Many dream so big in that moment that they lose sight of reality, and this can be detrimental to an otherwise great game plan. Dreaming about making a change isn’t bad, but letting that dream cloud your vision when it comes to what you’re truly capable of at that moment can cause a lot of problems. In this article I’d like to share some simple advice for anyone who’s hit that wall and is ready to make a change.

People typically go into creating their own business with one of two mindsets. The first is “I’m done with this job, nothing is going to stop me from doing (insert business plan here), I’m going to be the greatest”. The second is “I know what kind of life I want to live, and thinking about doing this scares the daylight out of me, but I’m ready and willing to learn whatever I need to in order to get there”. There is a fundamental difference between these two starting points, and it is that the second mindset starts you in a position of wanting to learn, whereas the first positions you in a place that is much more prone to failure. When we assume we’re ready for anything in life, we usually aren’t even close.

When we are humble, admit that we need to learn, and open ourselves to the opportunity to gain new knowledge, we often succeed.

When I started my business 1.5 years ago, I was about 10% excited and 90% terrified. I knew that although I was decent at woodworking, I had so much to learn. And I believe that starting point is why I’ve succeeded. I couldn’t begin to guess how many hours of woodworking videos I watched, learning new things and taking mental notes the entire time. I researched every tool I purchased, I learned the ins and outs of how to maintain them properly, how to safely handle them, and how to properly store them. I spent countless hours hunting for the best way to ship orders, package orders, which carriers provide the best rates depending on size and weight of packages. I spent weeks researching different woods, which ones were good for food prep and which were better for non-food related items. I spent months learning before I constructed my first cutting board. Had I not invested this time into learning about the craft, I would have most likely seriously injured myself using a tool I wasn’t familiar with, wasted a huge amount of expensive exotic lumber, and I would not have been prepared for the logistics of running a business. Learning gave me the foundation I needed to be successful.

My advice to anybody looking to start their own business and take control of their own finances would be this: No matter how much you think you know about something, learn more first. It doesn’t matter how good of an electrician you are if you don’t know where to source the materials/supplies you need to perform your job. It doesn’t matter how good of a handyman you are if you don’t know how to schedule appointments, create an invoice, properly bid out a job, etc. The benefit of working for a large company is that the infrastructure is already in place for all of this and you never have to even think about it. You just perform your job and somebody else handles the rest. This is not the case in self employment. You have to juggle 100 things at the same time, all of the time. This is impossible to do without a proper understanding of how each piece of that puzzle fits together.

Before you earn, take the time to learn. Short term income gains can be exciting and appealing, but not at the expense of a failed business when it becomes too overwhelming and you don’t have enough time to catch up with your own dreams.

Until next time my friends, Onward!

-Woodshop Bear

Website: https://www.littlebearwoodshop.com

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