Tom Cancelleri Posted December 1, 2014 Report Share Posted December 1, 2014 So I started out selling reindeer online to raise money to donate to dog rescues. So far I've received 4 additional orders for random things from people such as bowls, boxes, walking sticks. One person who just bought some stuff is an interior designer and asked me if I can build custom furniture to match certain designs she does. How do you guys figure out an appropriate price? Do you charge hourly for your work? Per piece? I can figure out material costs and things, but what is a fair price for say a walnut end table if materials and supplies cost $120. Quote Link to comment Share on other sites More sharing options...
..Kev Posted December 1, 2014 Report Share Posted December 1, 2014 This one's been covered a few times.. I charge material plus time. I don't mark up for material but, I pay myself a very fair hourly wage. So, in your case, you know your material costs. You need to estimate how long it will take you to build and finish. Then figure out what you think a fair hourly wage is and do the math. What's fair to you may be different that what I consider fair to me so, it's not a hard fast number. Don't leave out the shop consumables either - sand paper, glue, etc.. Quote Link to comment Share on other sites More sharing options...
Tom Cancelleri Posted December 1, 2014 Author Report Share Posted December 1, 2014 Don't leave out the shop consumables either - sand paper, glue, etc.. Good point. It'd be nice to break even on the amount of stuff I've been buying for my shop recently. Woodworking is a rather costly hobby, and I have expensive taste. 1 Quote Link to comment Share on other sites More sharing options...
dwacker Posted December 1, 2014 Report Share Posted December 1, 2014 Be careful selling to designers and the like, most will 1099 you so remember to report the income if you get a 1099. Secondly you have to be careful about infringement designers can can get you burned easily. Most people are cheap they think since you work at home part time they should get things dirt cheap, don't get that party started. 2 Quote Link to comment Share on other sites More sharing options...
JerrySats Posted December 2, 2014 Report Share Posted December 2, 2014 Be careful selling to designers and the like, most will 1099 you so remember to report the income if you get a 1099. Secondly you have to be careful about infringement designers can can get you burned easily. +1 to all that and +100 to this {Most people are cheap they think since you work at home part time they should get things dirt cheap, don't get that party started. } This does no good for you or other people in the industry , the only person that benefits is the consumer . Rest a sure that designer is getting top dollar for her work , so should you whether you do this part time or full time as a hobby or as a profession . JMO Quote Link to comment Share on other sites More sharing options...
T-astragal Posted December 2, 2014 Report Share Posted December 2, 2014 Don't sell cheap! Unless you're not very good at the craft. Remind yourself and the client that this is a one of a kind piece and the price will naturally reflect that. Steve Quote Link to comment Share on other sites More sharing options...
wtnhighlander Posted December 2, 2014 Report Share Posted December 2, 2014 I'd suggest progressively raising your prices to the designer until she refuses to buy any more. If you are just looking to make some tool money, not go into full-time business, take what she is willing to pay, leave it if she won't. Otherwise, you are chasing a rabbit down a very, very deep hole.... Quote Link to comment Share on other sites More sharing options...
Beechwood Chip Posted December 2, 2014 Report Share Posted December 2, 2014 As a hobbyist, charge enough so that you are really happy that you got the job. Here's from a previous thread. Quote Link to comment Share on other sites More sharing options...
Tom Cancelleri Posted December 2, 2014 Author Report Share Posted December 2, 2014 All very good advice. Much appreciated. I always think about things from the standpoint that I could build that for much less. I guess another way to look at it is to see what others are charging for similar things. Quality is like buying oats, if you want nice, clean oats, you must pay a fair price; however, if you're satisfied with oats that have already been through the horse, such oats can be had a little cheaper!! 1 Quote Link to comment Share on other sites More sharing options...
dwacker Posted December 2, 2014 Report Share Posted December 2, 2014 I always think about things from the standpoint that I could build that for much less. Usually not and especially not if you place any sort of value on your time. Usually you're going to spend double or triple what a commercial shop is going to spend on materials. The commercial shop is going to work circles around you. That being said you're in a different market. You need to have a niche that makes a sale. Many commercial products are made exactly the same way or better than you can do in your home shop. Don't try to compete with manufacturers. Give folks the "custom" service for a custom price. Quote Link to comment Share on other sites More sharing options...
Mzdadoc Posted December 16, 2014 Report Share Posted December 16, 2014 Curious how it turned out...... Quote Link to comment Share on other sites More sharing options...
Tom Cancelleri Posted December 17, 2014 Author Report Share Posted December 17, 2014 I knocked out a couple of bowls and pens for people. Beginning next year after I can post my gift pictures and advertise them I'll probably get more orders. Quote Link to comment Share on other sites More sharing options...
ColinF Posted December 24, 2014 Report Share Posted December 24, 2014 Usually not and especially not if you place any sort of value on your time. Usually you're going to spend double or triple what a commercial shop is going to spend on materials. The commercial shop is going to work circles around you. That being said you're in a different market. You need to have a niche that makes a sale. Many commercial products are made exactly the same way or better than you can do in your home shop. Don't try to compete with manufacturers. Give folks the "custom" service for a custom price.this is the gospel truth right here! I made my wife a jewelry box for Christmas, given the material costs at $100, how many hours working on it I don't know but to make any money it would be one OUTRAGOUSLY priced jewelry box if I was going to sell it. I used to think I could build things cheaper to, after I started buying good hardwood lumber I found out how wrong I was! Quote Link to comment Share on other sites More sharing options...
wtnhighlander Posted December 24, 2014 Report Share Posted December 24, 2014 Don't forget that most of us hobbyists are making one or two of any given item. Horribly inefficient, and no way to operate a business. If you plan to sell like that, think of yourself as an artist. And remember why they are usually referred to as 'starving'! As the son of an artists myself, I can attest to the fact that most artists make very little money, at least until they are dead. Business seems to pick up a bit after that. Elvis dead is worth way more than Elvis live. Same for Picaso, etc... Quote Link to comment Share on other sites More sharing options...
Tom Cancelleri Posted December 25, 2014 Author Report Share Posted December 25, 2014 this is the gospel truth right here! I made my wife a jewelry box for Christmas, given the material costs at $100, how many hours working on it I don't know but to make any money it would be one OUTRAGOUSLY priced jewelry box if I was going to sell it. I used to think I could build things cheaper to, after I started buying good hardwood lumber I found out how wrong I was! I priced out cherry cabinets for my kitchen and got a quote from a cabinet maker. Custom cabinets with my specifications will run me nearly $7000 with BLUM soft close hardware for what I want made. I priced out all the lumber/materials and hardware and can make all my cabinets for less than $2000 doing it myself. Time I've got plenty of, no kids and not married. My gf digs that I love building things and that I take pride in my work (she's a pretty amazing painter and can appreciate and even helps out with certain tasks) I value my time and I enjoy woodworking so I don't see it as wasting time in the shop or anything like that. The $5000 I'd save doing it myself could be money spent on more tools and fun toys for the shop. Would it be done in a weeks time? No absolutely not, however like I said time I've got, and I'd enjoy doing it. Also, the things you make like a jewelry box is not a bang this out kind of box, anything with any sort of hand cut dovetails, etc would take a long time to do unless it's custom order from someone, and you're getting paid handsomely to do so. Things that I would make and sell are faster easily repeatable items. You could however batch out a fair amount of simpler boxes fairly quickly if your workflow is right. Use box joints instead of dovetails, I can guarantee you that the majority of wooden jewelry boxes are cranked out laminated or veneered crap made in a sweatshop. For grins, price out a high end solid wood dining room table, and I'm not talking crap from a big box furniture store. Maybe it's just me, but since walnut and cherry are indigenous in this area and prices are fairly inexpensive per bf I can justify saying I can make most things for less than it would cost in a store (especially since it's something for me I don't mind spending that time) ie: Saturday I'm checking out some kiln dried cherry and walnut slabs at $3 bf for anything narrower than 16" and anything wider than 16" is $5 per bf. From the looks of it, some really nice wood. I generally like working with domestic wood so going the exotic route doesn't appeal to me too much for anything substantial. For smaller projects sure exotics are nice, depending on what your making. Quote Link to comment Share on other sites More sharing options...
..Kev Posted December 25, 2014 Report Share Posted December 25, 2014 The issue here T is that you're not putting a value on your time. You're not going to make a living at it without adding that value (as well as shop consumables, overhead, etc) to it. It's great that you can do these things for yourself but, that's a big difference from doing it for a living. Quote Link to comment Share on other sites More sharing options...
Tom Cancelleri Posted December 25, 2014 Author Report Share Posted December 25, 2014 The issue here T is that you're not putting a value on your time. You're not going to make a living at it without adding that value (as well as shop consumables, overhead, etc) to it. It's great that you can do these things for yourself but, that's a big difference from doing it for a living. Correct, I'm not talking about going pro in a hobby shop, I'm talking about making things that can be easily and still be different that people will buy and pay for the hobby itself. As for things for me, I can make stuff for me that's cheaper than someone else can make. Quote Link to comment Share on other sites More sharing options...
dwacker Posted December 27, 2014 Report Share Posted December 27, 2014 I can make stuff for me that's cheaper than someone else can make. No you can't make stuff cheaper than you might pay retail. Your cabinet shop example it's going to cost you more than the shop paid for materials, labor and all other overhead and you're not giving your time any value. You just don't have the buying power. That said you also are not equipped to put out the same quality work so your cabinets are not going to be equal to theirs. I get your line of thinking that if you give your time no value that you're saving money. That's a good way to think for a hobby. Keep thinking the way you are and you continue to have fun. Quote Link to comment Share on other sites More sharing options...
Beechwood Chip Posted December 27, 2014 Report Share Posted December 27, 2014 In the States, at least, there's a pioneer/settler culture. If you are a farm family living on the frontier, then making it yourself is the way to go, and you only buy things that you can't make yourself. That's because you live off your crops and the land, and don't have much cash income to spend. Also, shipping from the factories "back east" is very expensive. And, you may have free time in between planting and harvesting. So, there's a sense that it's always more frugal to make something yourself than to buy it. This is still true for people who don't have much money. You can sleep less each night if you really have to, but you can't pull cash out of thin air. Quote Link to comment Share on other sites More sharing options...
Coop Posted January 2, 2015 Report Share Posted January 2, 2015 Would it not be a good idea to sell the first piece at a close to cost price, just to get the exposure? Then gradually raise the price as highlander said, until she sets the limit on what she will pay. Quote Link to comment Share on other sites More sharing options...
mikem Posted January 2, 2015 Report Share Posted January 2, 2015 Would it not be a good idea to sell the first piece at a close to cost price, just to get the exposure? Then gradually raise the price as highlander said, until she sets the limit on what she will pay. While the idea sounds good in principle, it rarely works out that way and you usually end up loosing a lot of money. I would try to charge a fair price at the get go. Quote Link to comment Share on other sites More sharing options...
..Kev Posted January 2, 2015 Report Share Posted January 2, 2015 I think it's a very bad idea. Your time is worth money. Your skills and knowledge are worth money. If you under value them from the start, you'll never get what you're actually worth. 2 Quote Link to comment Share on other sites More sharing options...
Llama Posted January 2, 2015 Report Share Posted January 2, 2015 Here's something to chew on... If you are of the mindset that you should charge very little for your time/skill perhaps you aren't ready to sell. Quote Link to comment Share on other sites More sharing options...
Popular Post dwacker Posted January 3, 2015 Popular Post Report Share Posted January 3, 2015 I think you should always get paid for your time even if its only 50 cents an hour to buy yourself a new router. That being said you do have to be reasonable. What I mean by that is for example if the going rate for a cabinet guy is $25 an hour then by all means charge just that. BUT if takes you 100 hours to do what it would take the cabinet guy 15 it would not be overly wise to ask someone to pay the extra 85. If you try to compete you will always take a big hit, thats why its best not to compete at all. Just make stuff, set a price that is fair and move on. 3 Quote Link to comment Share on other sites More sharing options...
Coop Posted January 3, 2015 Report Share Posted January 3, 2015 While the idea sounds good in principle, it rarely works out that way and you usually end up loosing a lot of money. I would try to charge a fair price at the get go. You're right. Being a businessman, I know it's easier to reduce your price if you have to, rather than to increase it many times to get it where it belongs. Same holds true here. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.