Feasibility of setting up a custom build business. Interest?

[NancyJohnson]

Over the last year or so, I've built/customised a handful of parts basses for both myself and a couple of other people; as I've kind of fallen into an early retirement situation, I'm wondering whether it's feasible to actually set up/invest in a business of sorts creating basses. 

 

These would largely be Fender-esque, I can source parts easily enough; I have a local paint shop that have said they can pretty much do any type of finished paint job (clear/matte/gloss/metal fake etc.).

 

I'd not be looking to make huge £££ - obviously there'd be a build/labour fee, but it's more just to keep my idle hands busy.  I know I'm good at this and it's just a waste of my time doing nothing.  

 

Would anyone be interested?

[Beedster]

If it's a hobby through which you can make a few gear tokens, go for it. A business, I think you'd struggle, it's not just the margins on parts versus sold instruments which would be low, but the time costs of all those discussion with interested buyers who eventually decide on a Sire. I've built some bitsas to order here and made a loss each time, and that loss doesn't include the time I spent. OK, I wasn't doing it to make money, but neither did I sell any of the instruments below its value as an instrument. iI guess I'm saying that as a bobby that might wash its face, fine, as a business, no way   

[NancyJohnson]

1 minute ago, Beedster said:

If it's a hobby through which you can make a few gear tokens, go for it. A business, I think you'd struggle, it's not just the margins on parts versus sold instruments which would be low, but the time costs of all those discussion with interested buyers who eventually decide on a Sire. I've built some bitsas to order here and made a loss each time, and that loss doesn't include the time I spent. OK, I wasn't doing it to make money, but neither did I sell any of the instruments below its value as an instrument. iI guess I'm saying that as a bobby that might wash its face, fine, as a business, no way   

 

Perhaps business wasn't the right word, I guess!  Umm, certainly hobby/pastime would have been a better term.  I know that in the literal sense it's just screwing stuff together, but feedback from the work I have done (so far) has been positive.  There's no way I could build stuff from scratch; I neither have the time, inclination, machinery or skillset for this.

 

I certainly think it would be possible to turn round a couple a week to supplement my income.

[Beedster]

If the paint shop can do a decent Sherwood Green I’m interested in a Precision 👍

[Beedster]

Just noticed you were asking for interest not opinion, apols for my opinions above, have now shown some interest 👍

[Chiliwailer]

I’d kind of be interested. Recently I was looking at a Warmoth Fender build - funnily enough in Sherwood Green like @Beedster 👌

 

I know their wood is high quality and I like the options. But they have reputation, and for any new-starter, or unknown-to me-business  I wouldn’t be sure if it’s same quality, so that’d bother me. 
 

But it depends on the price you’re looking at I suppose. Moreover - I’d want to know exactly where the wood came from, but that’s just me. 
 

Looks like Limelight do well with the same model (generic parts) and I’ve always guessed that the ‘relic only’ offering was down to less work making sure the nitro finish is polished up and spot on! 

[Burns-bass]

It’s such a hard thing. To make it worthwhile you need to buy the goods at cost. So you’ll need to be VAT registered. 
 

Then you’ll need to ensure they’re well built, work well and you have a customer service policy in place. If you’re selling goods commercially you have responsibilities to the buyer (and the taxman).

 

You could build a few and then sell them online here, but personally I can’t see it being worth the effort. 

 

 

[Beedster]

1 hour ago, Chiliwailer said:

funnily enough in Sherwood Green

 

It's this year's black Dan 👍

[bass_dinger]

One of @NancyJohnson's advantages is that he has a reputation on basschat, as an all-round good egg, and nice chap.

 

That counts for something  - I know that he won't act in a way that will harm my interests, because he would in turn damage his hard-won reputation.

 

 

 

 

 

 

[Steve Browning]

29 minutes ago, Burns-bass said:

It’s such a hard thing. To make it worthwhile you need to buy the goods at cost. So you’ll need to be VAT registered. 

 You won't need to be VAT registered, unless your turnover exceeds the VAT threshold. You'd be claiming back the VAT on your costs but charging VAT to your customers (making you 20% more expensive).

 

Let's say you buy (VAT'able) parts at £600 (incl £100 of VAT). If you plan to make £200 out of the bass you are looking at two possiblities.

 

VAT registered you will charge (500 + 200) + 20% = 840

Non-registered you will charge (600 + 200) = 800.

 

Being VAT registered also imposes admin costs so you would have to add those costs into your pricing model.

 

VAT registration is a no brainer if your customers are VAT registered. Not so much if they aren't.

[NancyJohnson]

43 minutes ago, bass_dinger said:

One of @NancyJohnson's advantages is that he has a reputation on basschat, as an all-round good egg, and nice chap.

 

That counts for something  - I know that he won't act in a way that will harm my interests, because he would in turn damage his hard-won reputation.

 

 

No money changed hands here!

 

😄

[Dad3353]

21 minutes ago, NancyJohnson said:

No money changed hands here!

 

😄

 

Yeah, yeah. Sure. 

 

 

...

 

 

Edited 1 hour ago by Dad3353

[Dan Dare]

The only way to find out whether a business will work is to try it. It wouldn't cost a lot to place a few ad's, play one of your creations in public to attract attention, etc.

 

Whether offering Fender clones to an already crowded market would work is debatable. There are dozens of firms doing the same and they are going to be able to undercut a one man band via economies of scale, manufacturing in low wage economies, etc.

 

Even at the budget end of things, because Fenders and similar bolt together with around 50 screws, players will often make their own Bitsas (I and many on here have). It's easy enough to buy bodies and necks from firms like Warmoth (or cheaper Chinese stuff), chuck in a pickup or two and pots and make a few solder connections.

 

Buyers looking for higher priced instruments will tend to buy US or even Custom Shop Fenders, because they can be more certain they will retain residual value.

 

No harm in trying, though. If you build to order, you won't have to buy a load of parts and components on spec.

[Joe Nation]

The hardest part of a concern like this is finding your USP (unique selling point). Why should anyone buy one of your things instead of someone else's thing? G4M or Harley Benson are cheaper and have plenty of good online reviews; Warmoth have loads of custom options and a good rep; Retrovibe makes short scales and Telebackers or whatever they're called, they're unusual and cool; Squiers are actually Fenders so they're the original; so-and-so has beautiful quilted tops and hand-polished cherry bursts, they're pricey but worth it; [insert brand here] has a bunch of endorsements from famous players. What's your thing to separate yourself from the crowd?

 

It might just be that you're small and have great quality, everything made to order and finished to the nth degree. It could be a cool gimmick or an actual useful feature. It could be not doing Jazzes and Ps at all but getting some custom body shapes made for you. Maybe you just have a really good instagram or youtube channel. But you gotta find something to stand out. Or you could just make a bass you like and sell it here or on ebay or wherever, then make another one.

[Burns-bass]

2 hours ago, Steve Browning said:

 You won't need to be VAT registered, unless your turnover exceeds the VAT threshold. You'd be claiming back the VAT on your costs but charging VAT to your customers (making you 20% more expensive).

 

Let's say you buy (VAT'able) parts at £600 (incl £100 of VAT). If you plan to make £200 out of the bass you are looking at two possiblities.

 

VAT registered you will charge (500 + 200) + 20% = 840

Non-registered you will charge (600 + 200) = 800.

 

Being VAT registered also imposes admin costs so you would have to add those costs into your pricing model.

 

VAT registration is a no brainer if your customers are VAT registered. Not so much if they aren't.

 

Fair point. I guess my business is over the threshold, so registering for VAT is a no brainer. For a kitchen table business like this, you're probably right (although Quickbooks makes it simple enough to do a VAT return). Either way, I can't see the sums for this stacking up!

[Dad3353]

31 minutes ago, Joe Nation said:

... Or you could just make a bass you like and sell it here or on ebay or wherever, then make another one.

 

I think that this is the best starting point, so as to test the idea in Real Time, without too much initial risk. There's quite a few folk here on this forum, willing, I'm sure, to support your first steps in the venture.

As to a 'speciality' : may I suggest that we see a lot of folk disappointed that 'such and such' a model is not available in 'lefty' format. Maybe it could be an option to 'clone' a 'righty' bass into a lefty version, if a lefty player said what he/she would be interested in..? Just an idea.
For my part, I like semi-acoustic instruments, but that's maybe a whole different ball-park (and Our Eldest would be my first port of call; he made his own guitars, and has made (from scratch...) a few for friends or folk that know us..). It can be done, but it's really a Labour of Love, rather than a revenue stream, to be honest.

Another thought... How about offering especially light-weight 'fender-ish' basses, by chambering (drilling holes..?), lightening a bought-in body..? As long as it doesn't induce the dreaded neck-dive, it's a way of filling a gap in the Market, no..? 

Edited 2 minutes ago by Dad3353