home based woodworking projectsI get the following question weekly: how do I price my woodworking projects correctly? The answer is quite simple,┬áThe application can sometimes be problematic. The 1st thing you have to do is to know your costs. All of them. If you are running a 1 man shop, as shown in this example, this is easy. Let’s go through this step by step.

Costs:

  • wood
  • hardware
  • misc – glue, sandpaper, stains, lacquers, paints, brushes, drill bits, router bits……you get the picture.

Let’s say for the sake of this example your material costs are $130.00. Now we have to figure out the most appropriate formula to use. For most woodworking projects I use a 400 year old Yankee formula: take your material costs and multiply them by 4.

In the above example it would look like this. $130 x 4 = $520 In the end the marketplace will tell you if this correct, too high or too low. If this formula is not working use costs x 3 or costs x 5. You should find within a short period of time which formula works best for you.