I am a cabinetmaker who has worked in kitchen and bathroom type shops for eight years. I’m in the process of going out on my own and like the Arts and Crafts movement.
My experience has taught me that most people do not know what a custom made piece of furniture should cost. They usually have sticker shock. We don’t become rich at this, we pay for the wood, operating costs, salary’s and a small profit-hopefully. So when we charge $2700 for a morris chair we realize that $350 went towards wood. Another $350 for two cushions that are not leather by the way. Another 300-400 for finishing and we are left with about $1650 lets say. At the same time it takes 60 hours to build. If we want $20 an hour we are left with $450 in operating costs which takes into account transportation, admininistration costs and profit.
I guess what I’m trying to say is that it’s tough out there. Most people see a similar chair for $1000 at their local furniture retailer and wonder why my price is so high. Yet, its not high really when it gets broken down. I’m not ripping the customer off. Hopefully, I’ve provided a future family heirloom that lasts well beyond expectations.
As furniture makers I believe we need to shout out what things cost to be built. That way it becomes common knowledge what something costs when it is custom made. I’ve worked with cabinetmakers who have no idea what the piece they are building costs, for they didn’t sell it to the customer, they just build it for the owner of the shop. Amazing really, cause how is the customer supposed to know what something costs if the builder of the items don’t know?
Finally, what I’d like to see in Fine Woodworking is pricing. I’d like to see what the builders would charge for their pieces. Not intended to inform customers of what something costs, but rather to educate our competitors. What hurts this trade is the guy who stays in business for a year selling Morris chairs at $1000 only to go out of business. If we all knew how to price we could all have success. Maybe $2700 for a Morris chair isn’t enough. Maybe I’m hurting the industry. Honestly, I don’t really know. What’s your thought on pricing?
Replies
H,
Thank you for your post. The points that you raise are very important to anyone in the woodworking field. I will forward this to the editorial staff. They may have some good ideas on this subject. In the meantime, I feel like this post may have a good response in the General Discussion area of Knots. It is an issue that affects us all.
If you would like, I can move this post to that location.
Sincerely,
Gerald La Starza
Fine Woodworking
I'm grateful that you find the topic interesting. It is important and I'd like to see it brought up in the magazine. As for Knots, any input will be helpful. I think we should be talking about this, especially seeing as we are in a recession. If we hope to stay afloat we need to sell at a profit. So, lets talk about it. Thank you.
Here's a nice little article I found about pricing your work too low. As a custom furniture maker, you need to emphasize the value of your work.
http://www.evancarmichael.com/Home-Based-Business/1552/Discounting-Prices-How-Low-is-Too-Low.html
Edited 1/19/2009 10:14 am ET by mvflaim
m,
Thanks for getting me the article. It made me think that value is something I need to take into account. If we build custom furniture, it's likely for people looking for value and if my price is too low they may not buy. I look to add 10% profit + 6% administration costs in every piece.
I read a post over at Knots where two turners displayed their bowls at the same show. The one turners bowl was considerably less than the other so the second turner mentioned to the first turner that he should raise his price. The first turned obliged and match his price to the second turners bowls. A few minutes later a woman walked by and checked out each turners bowls. She thought about it and thought about it and came back and bought both bowls because she couldn't make up her mind which bowl she liked better. To her the quality was well worth the price regardless of what the first turner felt the bowl was worth after factoring his labor and material cost.
Here's another good read that may be helpful
http://www.inc.com/articles/2002/08/24551.html
H,
Would you like to write about this subject in The Woodworking Life, the blog section of our site? http://finewoodworking.taunton.com/blog/woodworking-life
It's a really good topic and others members may want to participate.
If you are interested, we can set up an account for you and get you started.
Sincerely,
Gerald LaStarza
FWW
What would be required of me to write in The woodworking life? I'm not on the computer everyday. I'm interested. I have a lot to say on the subject of woodworking and am passionate about it.
H,
It's a pretty simple process and there are two steps to get set up.The first step is to open a free account in this section of our site:
https://finewoodworking.taunton.com/user/login
It's pretty straight forward and your current password and id may actually work.The second step is, once you're account is active, let me know. You can email me directly at [email protected]I will then give you contributor's status in the Woodworking Life.From there, you can start a post and write on this subject. I'm around to help get you started.Sincerely,
Gerald La Starza
Fine Woodworking
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