I get the following question weekly: how do I price my woodworking projects correctly? The answer is quite simple, The 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.
- 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.