What to charge?


Pbmaster11

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Okay, I'll chime in too.

Firstly my little business is all word of mouth. I only accept 3-5 projects per year. I probably turn down 10-20 potential opportunities. If I'm going to accept a project for commission it has to be something that I'm either interested in learning, or excited about building, or for a client that I really like, or something where I'll get paid really well and I can't pass up. A good example is the farm house table and bench I recently did for a good friend. After I did that project I have been asked to make several more. I now charge 3 times what I charged for the first one. Why? Because, it's no longer an exciting project for me, so I may as well make a lot more on it.

Okay that doesn't answer you question. Let's assume I'm accepting a project. Here's my basic formula:

 

My Price = $100 + (2 * Cost of all materials including finish and any tools needed) + X

 

X = a fun factor.

If its something that sounds really fun, X = -$100

If the project is standard fun, X = $0 to $100

If its something I've done a lot of, or I am not interested in for what ever reason, X = between $100 and $1000, depending on how uninterested I am.

This little formula has served me well over the years. (20 years or so now.)
Have I left money on the table before, of course I have.

But now after using the formula for so long I'm really getting pretty good at estimating X.

 

If I became a true production shop, or if I had to do this to feed my family, I'm certain I'd need a better formula. Over the years I've been doing this my little company has grossed a minimum of $1200/year and in my best year I grossed about $15K. Again, I only bid about 5 projects a year and actually build 3 or 4.

 

If you end up trying my formula let me know how it works out for you.

 

Good luck.

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