My Gringo Workshop Project Part 2

June 04, 2015

5000 dollar bill


 $5,000 dollars! Is that what it take to build and outfit a workshop? Talk about a deal or a deal breaker!

As I stated in my previous post Part 1 "At first glance, I was like, the price isn't too bad, but after reading the article, I started thinking about how much would those tools cost in today's market. The piece also had me thinking about how many tools were not on the list at all."

So, lets tackle my first statement. In the article from Fine Woodworking it gave the price cost for each of the tools in 2006. Lets look at those prices.

Workshop Total $5,187
I have a couple of problems with the prices posted in the article. For starters the price do not include an average sales tax of the 50 states, and not to mention that it cost more than $5,000. I know what you are thinking, that is just petty and nonsense, but lets run a quick calculation on the price above with taxes and lets see if you still think the title should should have stated something different. 

To start, I can not go back in time to find out what the tax rates was at that time of the article. I can only go off what is the average for the 50 states as of 2014, which happens to be 6.371% according to Taxfoundation.org. The taxes on the sub-total would have been $318 and if you add that to the total of $5,187 that would equal $5,507. 

I am not rocket scientist, but they could have named the article "Set up shop for $5,500" since that would have been more realistic. I know it may sound petty, but if you are starting a woodworking business or becoming a hobbyist, and you think it is one price and it turns out to more than what you budgeted for, well shit up a creek you are - just saying...

Now, lets look at what they same or somewhat equivalent price would be in todays market. Since the last article did not state where they found that price, I decided to add two columns. One for where I found that price, and one if the same tool was available or equivalent. The last column could and should be debated on whether they are equivalent or not. Having stated that let's look at the differences.

More spreadsheet love for my workshop
The first thing I noticed was the price without taxes was not all that outrageous in price differential. The second thing I noticed was some of the same tools were still being built and sold in today's market. 

Which I then asked myself, if the products was good enough back then to recommend to everyone, why has new products come out and they recommend those products to the consumer vs the old ones. Is it because they have not updated the product line or they found out later they were crap? This question makes me want to ask "How many licks does it take to get to the tootise roll center of a tootsie pop?". Either way, some of us buy what is on the recommended list for this year, but rarely do we go back and look for what they previous recommended to see if they are still being sold.

The taxes turned out to be $362, add that to the sub-total cost and it is $6,044. Now, lets name the article "Set up shop for $6,000" :P

Now that I have tallied the information, lets dig into the data and see what the differences are.

Spreadsheet love for My Gringo Workshop

Outside of the vacuum (which may or may not be the equivalent) it is not that big of a difference. I mean the major factor when you total the bill is 9%. Which, in the grand scheme of this, is not bad over 9 years. That works out to be 1% each year or more depending the vacuum you choose.

Let's put these number in prospective if you were to compare this to the rate of pay increase of 2.9% according to mercer.com. Subtracting 2.9% from 1% or 26.1% * 9 years from 9%. One could have ended up 1.9% per year or 17.1% more in your pocket over nine years. Now, the last statement could be debated tirelessly, but an increase of 1% a year is not half bad in purchasing tools. 

Meaning, if you are needing to purchase a tool for your workshop business, but you do not have the money, you can tell yourself that you're going to gain 26.1% in revenue over nine years isn't over stepping your reasoning for putting the purchase on credit, or if you are needing to justify the purchase to your significant other. One could say that an increase of 1% in purchase price is not going to hurt your personal finances or you could use the excuse of "I am going to increase my productivity by 26.1% because of the tool".

Bottom line is, just purchase the tool if you have the money or it is going to benefit you. But if you are needing a reason to tell yourself that you are doing the right thing, feel free to use one of these excuses from above :P

My last point is a stickler and pretty big one in my opinion. Why is it that they do not add to the list things like clamps, glues, screwdrivers, hammers and etc. Do people who write these types of articles think that these things shit themselves out of thin air? If, we were to add these sort of items to the list it could be easily over $6,000 or  $6,500 dollars depending on how you look at this article.

In Part 3, I will be discussing Woodwhisper and Wood and shop recommendations.

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