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I am starting up a new woodworking business. I would appreciate responses on how to establish a sale price. Currently, I charge time, materials, and a small markup. Can anyone offer suggestions? Thanks!
Carpy
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Replies
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Jim, The use and value of woodworking items is as vast as the different styles and ranges of work. I think you are going to have to be a little more specific about the type of product you will be making before you can get any advice that will be helpful to your specific situation.
*Thanks for taking the time to respond. Here's some followup info:Currently, I am making differnt style quilt racks in cherry and yellow pine, a small cupboard w/raised panel doors in cherry (20" W X 36" H X 12" D), and custom sized sofa tables in cherry, or walnut mixed with sycamore. I am still attempting to establish a product line of my own. My wife and I are going to art & craft shows to sell these pieces. Eventually, I would like my name to get around by word of mouth, but this will have to do for now. Hope this info helps -- your advise would be appreciated!
*Jim, For pieces of this nature your best bet is to look around at the craft shows and see what compares to the things you are making. Compare the quality of your pieces to theirs. If your sofa table is better made and better finished then you should get more for it. If not, then maybe a comparable price is more appropriate. To some people the difference in quality is apparent and they are willing to pay for a better product. The ones that are shopping based on price only, probably have a house full of junk anyway and are not the type of customer's that will help you make your way in this business. If you intend on selling lower priced items then you will need to sell a lot of them. So your choice is to set up a production process to create large quantities of cheaper items or put your time into fewer higher quality items. Your ability at this craft will progress by making the higher quality items which will lead to making even higher quality items. Where as with the cheaper items all you will have is a production job. There are production jobs to be had that carry a lot less risk than marketing at arts and crafts shows.
*I have 2 1/2 years experience trimming out homes and building custom cabinets. I've been employed by two builders which pay by the hour. I'm making the transition to become self employed and would like to know how to price my jobs. What is a typical starting price per foot for trimming out a house? Does that include kitchen cabinet installation? Stair and handrail?
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