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How to Create Customized Furniture for Fun and Profit

by Pauline Paquin

Please welcome Eric from Simple Life Abroad who is a fellow Guatemalan expat and a serial side hustler! Let me know if you would like to guest post on RFI.

 

A sample of Eric's custom tables

A sample of Eric’s custom tables

 

 

Customized Furniture Mini Case-Study

When seeking Side-Hustles, there are several key factors that guide my decision process:

  1. Does it require a large investment of financial resources?
  2. Would I pay (at a minimum) the costs associated with making this product?
  3. Would it be fun to do?

I am lucky enough to be married to someone who has a never-ending stream of ideas; so I am never without an idea to run though the Hustle Mill in my mind.

Some examples of bankable ideas that she has provided in the past months:

  1. Mobile Pizza Sales in the tourism capital of Guatemala, Antigua.
  2. Vehicular Protection Systems for Taxi Drivers.
  3. Information Aggregation Product for Credit Histories (in Developing Nations).
  4. Furniture Design and Customization.

Furniture, huh? Ok. Hustle Mill– start!

Let’s talk about the financial investment:

I live in Guatemala, where credit is almost unheard-of for Foreigners. However, the cost of raw materials and labor are extremely low and have a tendency to compensate for this disadvantage.

Without a doubt, I would prefer to create and market my products on a Net 30 billing basis. This simply means that the customer [me, in this case] has 30 days after delivery to make payment. This allows me to avoid any upfront financial expenditures associated with my project. It also allows for me to extend similar payment terms to my client. This can be very important, depending on the price point of your product. These terms should be one of the key concessions you seek in negotiations with your carpenter.

 

For this 6-person dining room table [dimensions 1.8m x 1.02m x 76cm], total investment costs for the raw materials, labor and delivery are less than US $150.

Financial Investment: Approved

Is this Potential Product Desired or Valuable?

To Me: Would I pay (at a minimum) the costs associated with making this product?

I am a value-conscious investor, in both my time and financial resources. So, I have to imagine that if a product I spend time creating and perfecting is of value to me, it will appeal to others, as well.

However, many of the products that I create- both physical and virtual- are created solely for my use, and if they satisfy a niche of the larger commercial market, I am thrilled! However, in the creation process, it is important to be constantly analyzing how the process can be improved, automated and scaled.

To Others: To get a viability gauge of the customized furniture market in Guatemala, I do the following:

Plan

1) What will my product be?

I envision my ideal final product as a collection of Customized Modern Tables/Sidetables/Chairs. I think it best to start on the ends of the price spectrum, with a top-tier dining room table and with nightstands for the bedroom, growing my brand from these price positions.

 

IMG_4530

 

2) How will it be UNIQUE?

The collection will be a Modern take on Wooden Furniture in a country that has a very antique and colonial sensibility- is this a Weakness? Perhaps. However, with ‘Net 30’ credit terms and a Built-to-Order infrastructure, I do not have to worry about the risk of carrying or liquidating excess stock. That makes me smile.

Research

1) Based on the UNIQUENESS of my product, determine what other products have similar characteristics.

While their products are not made of wood, Kalea is the outlet for the majority of the modern IKEA-like furniture in the country. The majority of consumers with modern sensibilities and expendable cash tend to shop there. These are the customers who I want to introduce to my product.

2) Rough estimate of all inputs (time, resources) required to produce my final product.

Dining Room Table:
Raw materials + Labor + Transportation = $150 + 7 Business days of turnaround time.
Materials and Labor for Graphic Design: $20 + 10-12 hours of labor = $35
Total Cost: $185-$203.50

While keeping costs as low as possible is always important, I believe that the final product can easily be retailed for a reasonable profit with these considered inputs.

3) Compare time/resource investment with the available information about competing products– Usually, this is the final sales price, minus negotiated discount.

One thing that you learn quickly living overseas is that everything is negotiable, and these are the well-negotiated prices for a single unit. The price for equivalent product in Kalea is $335-$399, even though it is difficult to compare wood and metal/glass construction.

Deftly Design

1) Redesign product and/or cost structure in basis of previous data to make it an undeniable value over that of the competition.

I can’t share everything, now, can I?

Product Analysis: Approved

Would it be fun?

In reality, for something to be considered fun to me, it must involve 2 key items. It must be a learning experience and it must give me pleasure from having solved a problem or having created something beautiful.

Since this is my first experience with woodworking, I am certainly learning something; if only to be sure to wear thick gloves when using the wood chisel 🙂

And, I have pride above pride every time I sit down at my new dining room table to eat a splendid home-made meal prepared by the best chef on earth, my wife.

Fun: Approved

Author Bio: My name is Eric and I blog over at SimpleLifeAbroad.com where I discuss the importance of good hygiene. Just kidding, I write about the things that I use to make my life easier and more enjoyable. Join me?

 

This post was featured on the Outlier Model, thank you!

 

Lovely comments

  1. I salute people who made their talents as an asset. Not all can afford to support and improve the talent that they have. For me, creating furniture is just like making sculptures and it’s art. Hope I was talented as yours!

    • Marissa- Thanks for the kind words. I am very lucky to have a wonderful partner in this whole process, my wife. I would probably not have accomplished half of this without her support! Be sure to check out my post on HOW the table was made over at Simple Life Abroad. It is easier than you would think.

  2. Profits would be great but one way to see it is you’re already making a financial and emotional profit – You’re finding enjoyment in creativity instead of making that arduous and expensive trip to the furniture store. Careful with those splinters though!

    • Hi there, Alex. Pleasure to have met you. Thanks for commenting on the article. I can’t count how many times I yelped in pain during this process due to a steep learning curve (and some lack of common sense). I think I still have a splinter in my toe. Don’t ask…

      This project has been my “baby” for the last couple of weeks, and due to some local publicity we have already sold two more. But, more than anything, the profits are less monetary than emotional- as you correctly pointed out. We started the project to create something new and beautiful for others to enjoy.

      Please, don’t be a stranger over at simplelifeabroad

      Cheers-

      Eric

    • Hi Mark-

      Thanks for the compliments on the table. As much as you wish for the ability to add value to furniture, I wish I had your penchant for writing. That’s what makes us all unique. Unique people with diverse skills. And blogging lets us share those with others. Keep at it.

  4. That’s a pretty cool idea for a side hustle. Interesting table. My fiance is a carpenter so could certainly make furniture on the side, but he has a full time job already and in our area the niche is oversaturated.

    • Daisy-

      We are lucky to have access to cheap labor and raw materials, but in the process of getting my MBA, I realized that none of that matters- in the long run, For example, one of Guatemala’s (my current home) main economic problems is the fact that they do not participate in the value chain beyond the exportation of raw materials. In order to have a successful side hustle, all you need to figure out is where you can add value to the current market offerings. For us, that is simply in the fact that no one else has our “voice”. We are unique, and embrace that fact.

      What makes you unique? What is your passion?

  5. Creating custom furniture for your home makes your living space look unique and offers you the opportunity to showcase your taste in style. Don’t go to the design firm until you have a pretty good idea of what you want. Taking a bunch of pictures with you and explaining yourself thoroughly is important if you want to get satisfying results.

  8. a great idea, I have an old table was thinking about playing out, but now I see that a good creativity to transform into something better. Thanks for sharing!

  12. I have always dreamed of building a business that can be run in almost any third world country (especially as a non-profit that helps the people who work on it). Based on your analysis, selling furniture online, with low labor costs, seems viable.

    Thoughts?

  13. When I was young, I would create different furniture designs for my mom. I would even help her to construct chairs, long benches and similar items that she makes use of in her shop. I’m older now and I’m sure I still have the skills. This post is a wonderful inspiration, thanks so much Eric

  14. Hi Eric,
    Thank you very much for sharing your experience with us.
    You know it is a very good idea to spread once experience and idea so that we could make this universe a good place to live.
    Looking forward to hear from you soon.
    Cheers !

  15. In order to learn, a young child needs to feel cared for and secure with a teacher or caregiver. A 3-year-old child is able to spend time away from parents and build trusting relationships with adults outside the family.

  16. Torch office systems earned huge success in the field of office furniture and winning the trust and confidence of many corporate customers in past couple of years. After our first success as Office Furniture Supplier in Lahore, Islamabad and Karachi, we have introduced Spirit Office Furniture who is dealing with not only Corporate Industry but as well some portion for residential furniture as well for the very first time in Pakistan.

  19. Basic firm or plush mattresses. Basic mattresses are made from a variety of materials and are sold at every price range. Mattresses made with organic or natural fibers tend to be more expensive. You’ll be able to choose from extra firm, firm, plush, and extra plush mattresses, depending on how soft or hard you like your bed to be.

  22. There are a number of benefits of a good office chair in addition to visual appeal. If employees are provided with comfortable, good quality office chairs, productivity levels increase.

  23. When it comes to creating a new product, market research is essential because it helps you analyze what your potential customers desire most. How come you decided to make furniture, not copybooks or mobile apps?

  24. I see a lot of interesting articles on your website. You have to spend a lot of time writing many articles, thank you for your articles, today learn so much from your website.

  27. Wow! My husband and I recently completed a dining chairs and a table and honestly, I had lots of fun! I’ve always loved custom made furniture but have never thought of building one until my husband encouraged me to. The materials were pretty cheap and we actually save a lot of money. Of course, we took more time to complete 6 chairs and a table well since I wasn’t all that experienced.

    But I am glad we did it and I am really proud of myself!

  31. You have shared a very helpful topic here. Thanks for the awesome ideas. I have been searching for the tips as i wanted to make customized furniture for profit. Now i have got the clear ideas. Bundle of thanks to you.

  33. Maxco Furnitureoffice systems earned huge success in the field of office furniture and winning the trust and confidence of many corporate customers in past couple of years. After our first success as Office Furniture Supplier in Lahore, Islamabad and Karachi, we have introduced Spirit Office Furniture who is dealing with not only Corporate Industry but as well some portion for residential furniture as well for the very first time in Pakistan.

  38. I read out your post and got some brilliant idea about customized furniture creation. It looks like an awesome project.

    Thanks for sharing.

  39. Hello, I read your post and I got a some good idea about customized furniture making. It helps me a lot for make customize furniture.

    Thanks for your amazing idea.

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