pricing

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douglasr1

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doug
Hi
Im starting a woodworking business
I make tables, beds, nightstands, and other items
I was wondering if there is a formula for pricing the pieces that has worked for any of you out there

Thanks for any ideas or suggestions
 
Makinsawdust

Makinsawdust

New User
Robert
If you figure out pricing let me know. There are so many variables I almost never get it right. Projects always seem to be more difficult than you initially think they will be. I usually end up donating a lot of time and my customers think I'm over priced.

I have an article from WoodWorks Magazine. a few years ago that breaks everything down into operation times so that you can multiply by your overhead numbers. I could make a fair wage using it if I could only find someone to pay the price. No work = No pay.

My experience says that if you are not on or above these factors, your probably not making a wage or are losing time/money.

3x material cost for the average rough carpentry type project (soft wood, plywood, dimensional lumber, nailed, screwed, & painted)
8-10x material cost for fine woodworking that is not overly sophisticated in techniques such as carving, inlay, etc. (hardwood, glued, joinery, quality finish)

Be wary of anyone that claims they make a lot of money doing this. The money is not in this unless you happen to get real lucky on the marketing of yourself and you can also work fast with a high degree of precision.

That's why so many "pro" woodworkers, teach, write, or start woodworking schools!
 
Ken Massingale

Ken Massingale

New User
Ken
I wish you the best of luck, seriously.

Your biggest issue is finding customers that know and appreciate the difference between quality solid wood furniture (and can and will pay the price), and Walmart/Ikea particleboard crud.
 
M

McRabbet

Every project I do on commission is designed in SketchUp and no cost estimate is done until the design is agreed upon with the client. I use only furniture grade hardwod plywoods and rough hardwood lumber (4/4, 5/4, 6/4 or 8/4) as appropriate. I allow for waste in my milling (I use Cutlist Plus; but the material cost is for 100% of the actual material bought even if 35% is waste) and calculate overhead as 5% of Labor and Materials. I break down each piece into labor units of design, layout, fabrication, finishing and installation at $25/hour. Profit is 10% of my labor. I charge actual shipping costs and NC Sales Tax on materials. Special order materials have 10% markup. I do not compromise on materials and I have the client sign a contract price which I countersign at the time we agree on the project. Depending on material costs and shipping, I collect 1/3 to 1/2 of the project total up front and the balance on acceptance.
 
C

Creative Woodworks

New User
Andy
Amen on getting 1/2 the total cost up front. I usually charge 4x the material cost. That breaks down to 25% material, 25% overhead ( shops and tools are not cheap), 25% supplies ( sand paper and finishing supplies can eat up alot of cost), and 25% labor. If the customer needs it quickly than you usually add a "Rush" charge. I have been doing this for 8 years on my own and before worked for a custom cabinet shop in wake forest. I price out the same way that my old boss does. It keeps you from working for free. When I started my buisness I was making less than minimum wage because of low bidding on jobs. Good luck with your buisness, custom woodworkers are dying out because of the prefab guys.
 
Gregory Paolini

Gregory Paolini

New User
Gregory Paolini
Creative Woodworks said:
Amen on getting 1/2 the total cost up front. I usually charge 4x the material cost. That breaks down to 25% material, 25% overhead ( shops and tools are not cheap), 25% supplies ( sand paper and finishing supplies can eat up alot of cost), and 25% labor. If the customer needs it quickly than you usually add a "Rush" charge. I have been doing this for 8 years on my own and before worked for a custom cabinet shop in wake forest. I price out the same way that my old boss does. It keeps you from working for free. When I started my buisness I was making less than minimum wage because of low bidding on jobs. Good luck with your buisness, custom woodworkers are dying out because of the prefab guys.
Click to expand...


For furniture making, 4X materials may not be a good formula - But I'll tell you, for cabinetry, it seems to really nail it. For the longest time, I lauged at the 4x materials charge - But then I started going thorough old bids, as well as pricing surveys from Cabinet Maker magazine, and also from some of the winning bids by my competitors were getting (And maybe even doing my own secret shopping - Shhh....) I did an averave, and I'll be darned if it didn't come up to a ratio of 3.9671:1.

I price out cabinetry 3 different ways now: Excell spreadsheet; 4 x materials; and Per Box - They all come out close to one another, and It leaves me knowing I priced the job right, whether I get the go ahead or not.

For furniture, it always helps if you've made the piece before, and can track your labor that way. Keep notes on times, so you can take line items, and apply them to future projects - For example, I know that to edge band 1 component of a cabinet, it takes me approx 2 minutes - That's an average which accounts for set up, tear down, etc... So if I have a cabinet with 12 pieces to edge band, I can factor in 24 minutes of labor. A mortise may take 3 minutes. Planing 1 board foot takes.... And so on....

Start looking at what other folks are getting for their work too - Be sure to compare apples to apples, not oranges. For example, I don't comapre my prices to Stickley's. Anyone reading this who has seen my work, and the current stickley work will understand. Conversley, I know I don't have the Reputation or renown of a Kevin Rodel, or Thos Moser (yet).

And don't fall into the trap of lowering prices to sell more. Case in point, if I told you I have a Festool track saw package for sale for $100, would your first response be "I'll Take it!" or would it be "uh, What's wrong with it?"

I hope this helps

-gp
 
D

douglasr1

New User
doug
Thank you to everyone who commented and offered suggestions
I think it will help me at least get a start on trying to figure out what to charge

Thanks again


Doug
 
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