Starting my Own Ceiling Fan Business

[Deleted]

Instead of customizing complete vintage ceiling fans, I would like to start my own ceiling fan company. I plan on calling the my ceiling fan company F.M.C., short for Fan Motor Company. The F.M.C. ceiling fans are going to be a reproduction of vintage ceiling fans. What would be good suggestion to making great quality ceiling fans? Especially the hugger ceiling fan models?

[Parkman]

Building or Buying a Factory.

[fancollector12]

All I can say is Dear God...

[Brian L.]

Apr 8, 2019 11:24:07 GMT -5 @fanmaster911 said:

Instead of customizing complete vintage ceiling fans, I would like to start my own ceiling fan company. I plan on calling the my ceiling fan company F.M.C., short for Fan Motor Company. The F.M.C. ceiling fans are going to be a reproduction of vintage ceiling fans. What would be good suggestion to making great quality ceiling fans? Especially the hugger ceiling fan models?

Yes, the dream of many people; starting a company of some sort. It is most definitely a great idea to have in mind and we all have a plan when it comes to starting products based on what we enjoy. However, the competition out there is very fierce and starting up a company from the ground up is extremely hard to do. Now, I am not sure what your prior experiences are, and how far you are going to run with this idea, but if you did take it far and actually wanted to start up a company, there are many logistical barriers you must overcome.

First is pitching the idea. There are many platforms you could use, such as Kickstarter or Indiegogo, where you and a few other people create a product at least past the concept stage and push your idea to convince people to buy them. Looking at the current market standards right now, the quality ceiling fan you would need to create would have to have a mixture of a minimalist and retro design. This is a very good path to go on because many people are looking for a fan that meets that criteria. You must also design the internals of the fan in some way or another, this will need to be done with the help of engineers, or people who are seasoned in the field. If you are an engineer and electrician yourself, then you are pretty much set with that, but do consider that people are also seeking NEW Technology in products, so if your fan is still using electronic systems from 50 years ago, you probably won't get as much recognition as someone who had developed a wireless Bluetooth smart fan.

It is also very important to PATENT your product before you release your idea online as the last thing you want is your intellectual property stolen by a competitor. This has actually happened a few time with some startup companies so you will need to go ahead and send those original ideas and concepts to the patent office. Do take note, patenting your product is not cheap at all.

Your product will also need to be UL listed, CSA tested, or ETL Listed. This is the official mark that denotes that your product is reliable for the market and safe for the consumer to buy. The last thing you want is your product to catch on fire in a customer's house and have yourself get sued.

Now let's say your concept is good and you have overcome a lot of these stages and you have good investment money from investors and a kickstarting platform. Another challenge you will face is the manufacturing process for your fans, where you will need to understand how you are going to create your product for the masses. It could be overseas or in the U.S. or whatever works. However, it is one of those things that you should also keep in mind because you need profit margins for a company to stay afloat (pay for rent, materials, employees, taxes, expenses, etc.)

Starting a company from the ground up is most definitely a challenge, and don't let this fully discourage you from going ahead and achieving your dreams. There are also many different ways to approach this and what I have mentioned are just a few of the barriers you will need to overcome at the beginning. You could also always hire and consult with people to do a lot of these challenging things, but do note that there are crucial factors you will need to take note of:
- Have a viable and profitable concept to keep your company and its ideals afloat
- Have a great presentation and product that is pretty much complete(this is more convincing to investors)
- Find investors as startup money is extremely important to your brand. These people are also crucial assets if they play a role in your business.

Keep in mind the first bullet is VERY important, so if your idea does not meet those criteria, business can be risky. And as always, success is not always a guarantee, so when it comes to a realistic standpoint, I believe you should probably stay away from actually starting up a company unless you are ambitious enough and have a set goal in mind

Good luck!

[Parkman]

Apr 12, 2019 2:09:42 GMT -5 Brian L. said:

Apr 8, 2019 11:24:07 GMT -5 @fanmaster911 said:

Instead of customizing complete vintage ceiling fans, I would like to start my own ceiling fan company. I plan on calling the my ceiling fan company F.M.C., short for Fan Motor Company. The F.M.C. ceiling fans are going to be a reproduction of vintage ceiling fans. What would be good suggestion to making great quality ceiling fans? Especially the hugger ceiling fan models?

Yes, the dream of many people; starting a company of some sort. It is most definitely a great idea to have in mind and we all have a plan when it comes to starting products based on what we enjoy. However, the competition out there is very fierce and starting up a company from the ground up is extremely hard to do. Now, I am not sure what your prior experiences are, and how far you are going to run with this idea, but if you did take it far and actually wanted to start up a company, there are many logistical barriers you must overcome.

First is pitching the idea. There are many platforms you could use, such as Kickstarter or Indiegogo, where you and a few other people create a product at least past the concept stage and push your idea to convince people to buy them. Looking at the current market standards right now, the quality ceiling fan you would need to create would have to have a mixture of a minimalist and retro design. This is a very good path to go on because many people are looking for a fan that meets that criteria. You must also design the internals of the fan in some way or another, this will need to be done with the help of engineers, or people who are seasoned in the field. If you are an engineer and electrician yourself, then you are pretty much set with that, but do consider that people are also seeking NEW Technology in products, so if your fan is still using electronic systems from 50 years ago, you probably won't get as much recognition as someone who had developed a wireless Bluetooth smart fan.

It is also very important to PATENT your product before you release your idea online as the last thing you want is your intellectual property stolen by a competitor. This has actually happened a few time with some startup companies so you will need to go ahead and send those original ideas and concepts to the patent office. Do take note, patenting your product is not cheap at all.

Your product will also need to be UL listed, CSA tested, or ETL Listed. This is the official mark that denotes that your product is reliable for the market and safe for the consumer to buy. The last thing you want is your product to catch on fire in a customer's house and have yourself get sued.

Now let's say your concept is good and you have overcome a lot of these stages and you have good investment money from investors and a kickstarting platform. Another challenge you will face is the manufacturing process for your fans, where you will need to understand how you are going to create your product for the masses. It could be overseas or in the U.S. or whatever works. However, it is one of those things that you should also keep in mind because you need profit margins for a company to stay afloat (pay for rent, materials, employees, taxes, expenses, etc.)

Starting a company from the ground up is most definitely a challenge, and don't let this fully discourage you from going ahead and achieving your dreams. There are also many different ways to approach this and what I have mentioned are just a few of the barriers you will need to overcome at the beginning. You could also always hire and consult with people to do a lot of these challenging things, but do note that there are crucial factors you will need to take note of:
- Have a viable and profitable concept to keep your company and its ideals afloat
- Have a great presentation and product that is pretty much complete(this is more convincing to investors)
- Find investors as startup money is extremely important to your brand. These people are also crucial assets if they play a role in your business.

Keep in mind the first bullet is VERY important, so if your idea does not meet those criteria, business can be risky. And as always, success is not always a guarantee, so when it comes to a realistic standpoint, I believe you should probably stay away from actually starting up a company unless you are ambitious enough and have a set goal in mind

Good luck!

This is very good advice.  I think you would be better off opening your own shop whether it be online, brick and mortar, or a combination to then have an income coming off of other peoples fans then start once you've made some money and started a presence try to make your own line.  I think unless you're a Dan's Fan City franchise, sell a full range of lighting along with other home decor, or offer Electrical work with your fan shop its gonna be too hard to compete in todays market with the overhead that Brian mentioned above.  Most people walk into a store with a phone so you have to undersell all the online showrooms, amazon, walmart, and in sometimes ebay sellers.  That profit margin is going to be more important to you because most of those places are dealing in volume, don't have 2-5 people working at a time, are most likely drop shipping it so they don't need a whole facility, and are paying the overhead to sell your product category (Fans) and many other things.

I think to add to Brian's post you need to be realistic..  You'd have to find a company most likely to build your fans for you to keep the overhead down and have it manufactured overseas.  Companies like that require you order "X" amount of units to produce them. Unless you're trying to find a niche in the market and do Made in the USA its probably not going to be profitable for a long time with the difference in labor costs and other requirements.  Another thing is patents aren't cheap so if you want one or two models that might be it for a while unless you have an endless supply of cash.  Its been discussed alot.. Home Depot and Lowes are a huge enemy in this dream because most people want to walk in pull something off the shelf and get it up that weekend before they go back to work..  If what they have isn't on the shelf they're most likely gonna look on there websites or if there pockets are larger, they have pickier tastes, or know the difference in levels of quality then they'll go to a showroom or website that specializes in fans like Hansen Wholesale for example.  

Another point is what makes your product unique?  Is it quality, how can you prove it?  The biggest thing in the American market is cost.. Why is it justifiable to purchase this product?  I know people who say why would I have back in the day paid $250 for a Bronze Casablanca Panama when a Bronze Harbor Breeze Classic is $50.  You can explain the differences in the Panama and I'd go with the Panama but a lot of people think.. Hmmm.. Even in the Panama is better I could buy 5 Harbor Breeze's for the price of that one Panama.  How many could I go through?  Value is a big thing.. Its like cars, 10 years ago I wouldn't go near a Hyundai..  Now, I know a ton of people who have bought them and love them and have become repeat buyers.  Their reliability has gotten better but they offer a great value.. My wife bought one and its her favorite car she's owned.  Is the quality there mechanically?  (We'll see), Is the quality there in materials (It appears to be other than the interior is a bit cheap in my opinion).  However it offered a bunch of features and with the rebates it made itself a great value.  However the reputation of a Car Company or a Household appliance company is going to spread MUCH quicker than a Ceiling Fan company.  Thats how Hunter is still selling so many fans despite them being total crap in the last few years.  Eventually that may catch up to them, I know a few people who switched to Harbor Breeze and Hampton Bay because of their recent experiences.. They didn't even consider Minka, Craftmade, etc. because it was what was available at the local Home Improvement store.


Something I always thought would be interesting was if you opened your own showroom to have a "pre-owned" section.  For example if you had an Electricians license and also installed fans for those you sold you could offer a trade in value for the old fan out of your profit margin, say $5 for most fans, $20 for something better.  Take it back and restore it like Brian Hicks does with Originals and then sell them in your shop for say $150 or $200 while a new one is $550.

[Brian L.]

Apr 12, 2019 7:21:50 GMT -5 @parkman said:

This is very good advice.  I think you would be better off opening your own shop whether it be online, brick and mortar, or a combination to then have an income coming off of other peoples fans then start once you've made some money and started a presence try to make your own line.  I think unless you're a Dan's Fan City franchise, sell a full range of lighting along with other home decor, or offer Electrical work with your fan shop its gonna be too hard to compete in todays market with the overhead that Brian mentioned above.  Most people walk into a store with a phone so you have to undersell all the online showrooms, amazon, walmart, and in sometimes ebay sellers.  That profit margin is going to be more important to you because most of those places are dealing in volume, don't have 2-5 people working at a time, are most likely drop shipping it so they don't need a whole facility, and are paying the overhead to sell your product category (Fans) and many other things.

I think to add to Brian's post you need to be realistic..  You'd have to find a company most likely to build your fans for you to keep the overhead down and have it manufactured overseas.  Companies like that require you order "X" amount of units to produce them. Unless you're trying to find a niche in the market and do Made in the USA its probably not going to be profitable for a long time with the difference in labor costs and other requirements.  Another thing is patents aren't cheap so if you want one or two models that might be it for a while unless you have an endless supply of cash.  Its been discussed alot.. Home Depot and Lowes are a huge enemy in this dream because most people want to walk in pull something off the shelf and get it up that weekend before they go back to work..  If what they have isn't on the shelf they're most likely gonna look on there websites or if there pockets are larger, they have pickier tastes, or know the difference in levels of quality then they'll go to a showroom or website that specializes in fans like Hansen Wholesale for example.  

Another point is what makes your product unique?  Is it quality, how can you prove it?  The biggest thing in the American market is cost.. Why is it justifiable to purchase this product?  I know people who say why would I have back in the day paid $250 for a Bronze Casablanca Panama when a Bronze Harbor Breeze Classic is $50.  You can explain the differences in the Panama and I'd go with the Panama but a lot of people think.. Hmmm.. Even in the Panama is better I could buy 5 Harbor Breeze's for the price of that one Panama.  How many could I go through?  Value is a big thing.. Its like cars, 10 years ago I wouldn't go near a Hyundai..  Now, I know a ton of people who have bought them and love them and have become repeat buyers.  Their reliability has gotten better but they offer a great value.. My wife bought one and its her favorite car she's owned.  Is the quality there mechanically?  (We'll see), Is the quality there in materials (It appears to be other than the interior is a bit cheap in my opinion).  However it offered a bunch of features and with the rebates it made itself a great value.  However the reputation of a Car Company or a Household appliance company is going to spread MUCH quicker than a Ceiling Fan company.  Thats how Hunter is still selling so many fans despite them being total crap in the last few years.  Eventually that may catch up to them, I know a few people who switched to Harbor Breeze and Hampton Bay because of their recent experiences.. They didn't even consider Minka, Craftmade, etc. because it was what was available at the local Home Improvement store.


Something I always thought would be interesting was if you opened your own showroom to have a "pre-owned" section.  For example if you had an Electricians license and also installed fans for those you sold you could offer a trade in value for the old fan out of your profit margin, say $5 for most fans, $20 for something better.  Take it back and restore it like Brian Hicks does with Originals and then sell them in your shop for say $150 or $200 while a new one is $550.

Great points! I definitely think that the last option is very realistic and would be something I would love to consider doing someday. Refurbishing used products to correct standards and making things new is a great way of combating things from going to the landfills and scrap. Today's society is always always always looking for new things and trashing the old which is a shame because it is extremelyt wasteful in the end.

[fancollector12]

How can we trust him... "Oh I'm not going to customize ceiling fans anymore"... remember the time he scammed Adrian P. out of $$$ for a Homestead HP-30 that he ruined?

[Noah C]

Apr 13, 2019 3:25:33 GMT -5 fancollector12 said:

How can we trust him... "Oh I'm not going to customize ceiling fans anymore"... remember the time he scammed Adrian P. out of $$$ for a Homestead HP-30 that he ruined?

We all remember that, Vince. But sometimes we gotta look towards the future instead of dwelling on the past. If he actually wants to build a business for ceiling fans, then he will begin to take heed to this advice he's been given by Brian and by Parkman. Do I trust him? No. But do I want to see if he does anything? Indeed.

[Parkman]

Apr 13, 2019 4:49:57 GMT -5 Noah C said:

Apr 13, 2019 3:25:33 GMT -5 fancollector12 said:

How can we trust him... "Oh I'm not going to customize ceiling fans anymore"... remember the time he scammed Adrian P. out of $$$ for a Homestead HP-30 that he ruined?

We all remember that, Vince. But sometimes we gotta look towards the future instead of dwelling on the past. If he actually wants to build a business for ceiling fans, then he will begin to take heed to this advice he's been given by Brian and by Parkman.

Agreed.  We can beat a dead horse all we want.  If/when it comes to doing business with the guy, if you don't trust him then don't.  If you see someone else wanting to warn them.  The reality of it is that it takes a lot to start and maintain the beginning stages of any business.  I doubt most of us on here have the means to do it while many of us are in the 20-40 range with enough bills to pay.  Not trying to sound pessimistic but the reality of any of us being able to fund a business that actually manufacturers is very slim unless someone has the funds, credit, or investors to so but the reality is though I don't know fanmaster911 the reality is a manufacturing type business isn't going to happen if he's a regular guy like most of us.  Thats why I pumped some ideas of something more realistic in todays times.

Look at Casablanca that was more of a "homegrown" business but Burton A. Burton had already made money in other industries I remember Tom Frampton saying.  And for  Tom Frampton it was probably a tad easier then one of us as he had true industry experience from working at Casablanca to then start his company which became very successful.  I'm sure he has plenty of stories of the growing pains in the foundation of his business like most companies.