My youngest son and I have formed a small company making writing pens, using wood from famous horse farm fences and buildings.

We're currently set up in a small block building on one of my rental properties.

All profits are going to an on-going inner city education/activity commitment I have. All labor is done by inner city kids. They're learning to use a lathe and other machinery. They get paid a per piece fee which is almost $2.00 above minimum wage. We're interviewing for a shop foreman right now.

The product is sold at arts and crafts fairs, in tourist gift shops, including one at a major Kentucky distillery (pens are made out of recycled barrel wood) and directly to some manufacturers as a Kentucky souvenir.
The next step will be to hire commission route people, who will check with retailers and replace inventory and collect the money. We'll set some older kids up as independent business people (route managers) who will simply secure displays (constructed from tobacco sticks) and product on an honor system and pay for the product after the sale. We'll eventually have a sales manager; hopefully an bright youngster in school.

A local utility just ordered 500 pieces, so we're off to a healthy start. And, we're working with a local University to put the product into the alumni magazine.

In November and December, we sold over 600 units. That volume will decline (Christmas sales), but our business plan calls for sales of approximately 75 per week thru 5 hotel gift shops alone.

Retail price is $20-35.00. We'll have a line of fluid ink pens at a $45-60.00 price point before tourist season.

Material (wood blank and kit) cost's about $2.50 for a $25.00 pen. One person can make about 4 an hour when training.

Current conservative projections are the generation of $250, 000 in annual sales by the end of 2013, with gross profits (after labor and materials) of nearly $175,000.00). The headquarters and manufacturing area will be in the youth center we're working on, and these profits will fund building maintenance and utilities and help with program costs.



Fun stuff!


Russ

A most worthwhile endeavor as always, Russ ...
coincidentally, an acquaintance of ours just started making pens - wood, horn, etc. - but he is doing it as his livelihood, having recently lost his 9 - 5 ...

Sounds like a fantastic scheme Russ. What made you think of doing this?

Nigel, I'm not very mechanically inclined. My one son works for me and has the same graduate degrees and arrogant interests and attitudes.

My youngest son is a "hands on" person, and, since I can't help with actually doing projects, I plan and help finance them. We have a successful DJ operation (an Airstream trailer-carshows only), a sound company, we remodel old cars and motor scooters, have a party bus, remodel and sell or rent 4 houses a year, etc. We're on our 2nd kit built motorcycle.

He's a kind-hearted little dude and was interested in the tooling for these pens.

I always put up the money for the projects. He builds some for himself and sells them. I had already started plans for my youth center project, so when I volunteered to buy two set-ups, he offered to supervise/train.

The marketing approach to concentrate/emphasize using woods from famous Kentucky horse farms and distilleries was my input.

Just an effort to support my son, enjoy time with him and do a little good in the process.

R.