I am starting a cabinet shop and would appreciate input on setting prices: 1) Is it common to use material-plus-a-percentage? What percentage? 2) Is it better to use a linear-foot price and how is that price figured? 3) How is hourly shop rate determined?
Michael Taynor
Replies
Hi Michael ,
# 1. No , while the cost of materials can vary your labor may not , so in general for cabinet and case work cost plus a percentage will not be a consistently accurate method .
#2. Imo it is better to use a linear or a square foot pricing method . you can take an average kitchen base cabinet for starters , so much per lineal foot plus so much per door and so much per drawer,finishing also can be figured by the lineal foot .For installation I charge a percentage as a rule 10% if it is simple 15% for more complex or multiple days and trips . This is just a guide line to work off of , I use Red Oak as the starting point and factor up for Cherry, Walnut and more expensive materials. If you need 200 bf and 10 sheets of veneers figure the waste for the specie you will use and add an upgrade charge to your figures .
Set the hardware for your standard , then factor up for more expensive models and any additional time involved .
#3. Your hourly shop rate can be figured after you really know what your overhead and cost of doing business really are . If you feel you should earn say $25 per hour after expenses and that that should be your wage then you will be charging your hard and real costs plus the $25 per hour , now that will not include any profit . Try not to confuse direct labor with profit . Any thing over and above your hard costs and wages may be considered profit , I know that may seem hard to grasp but it is close to reality .
Personally I bid all my work , I do not work by the hour . I try and never be the lowest bidder , occasionally it happens . Whether I'm fast or slow the cost is the same to the client .
Do what you say and try to be realistic on completion dates , stay in touch and keep the lines of communication open . I spend a bit more time before I start the job with my clients to absolutely make sure we are all on the same page and that all parties expectations and pay schedules are comfortably understood and agreed upon .
hope this helps good luck dusty
Set yourself apart from the masses out there , do something different then the majority , try stairwells as a specialty , just a thought .
Most of the kitchen cabinets I have built over the years were for high end houses. I figured that the cabinets installed were between 5 to 6 times the materials cost depending on complexity and market demand. I also took a look at my skills necessary to do the work and who else might be able to do it. If the work demanded a high level of skill I charged more than if it was just run of the mill work.
Get a free subscription to CabinetMaker and Read IT, cover to cover. Pay attention to the annual pricing survay. The variation in pricing is shocking, depends a lot on location. Hourly shop rate of $40 - $75 per hour is common.
I build ALL frameless and use Blum hardware. If you use 32mm hardware, and you should, purchase a hinge boring machine, new or used. Trust me, it's the best thing you could do. I don't buid wood drawer boxes anymore, I use Tandem Box.
Go to http://www.woodweb.com and read the dicussion forums and knowledge base.
DJK
"I use Tandem Box"What are the prices like?
I don't know any one who does (materials X 3 or 4). That would be foolish. I have a general idea what I charge per lineal foot based on the last few years of projects. I use that to give them a price range. The reality is I can build a good kitchen for 10 grand or for 25 grand. So it is impossible for me to give a simple bid without knowing what they are willing to spend and what they expect. So based on the linear feet and directed questions about convience hardware, pantries, lighting, door style, and islands I give them a price range. I'll tell them
"I can build you a good kitchen for 13 to 18 thousand; 13 k will get you a good kitchen with quality hardware, sound construction, a common variaty of lumber, and basic 5 piece doors. For 18 k I can build you a kitchen that will have the best hardware and convience features, higher end lumber, and a more detailed finish. But if you want a kitchen that will amaze any one who walks through. A kitchen that every one will know didn't come from Home Depot. Some thing personalized that reflects your taste and lifestyle, I would be very excited to work with you to acomplish just that"
Generally I know the clients who are going to be interested in the last option. The schpiel is generally a little more polished than the above example. I am not trying to sell them more expensive cabinets, I want them to know what their options are. And I present the options in a way than keeps them in control of the discusion.
After that conversation I leave knowing pretty accurately what their budget is and their expectations. I then sit down and decide how much cabinet I can give then for the money. I admit that this method is prone to short selling myself a little because I always want to make the best cabinets I can, but I am getting better. So basicly in the end I bid materials + time (days in the shop) + finishing + instalation +appliance instalation + extras (lighting, modifying flooring, odd stuff related to counter top installation, moving electric or plumbing rough outs).
Pardon my spelling,
Mike
Make sure that your next project is beyond your skill and requires tools you don't have. You won't regret it.
Are you truly starting a cabinet shop?
Or are you really just shopping for prices for your kitchen?
This is your first post, and it seems odd you're opening a business without knowing what, or how to charge...
Your location (unknown) also has a lot to do with price...
If you're serious, there are several good books on running a small business that cover a multitude of topics far more in depth than we all could write about here.
jackplane,
Yes I am truly starting a Cabinet Shop.
No I am not price shopping for my own Kitchen.
I know how I have charged for cabinets in the past but its also been about ten years since I last worked for my self and I thought some other guys might have good ideas which they did.
I live in Stevensville, Montana in the Bitteroot Valley south of Missoula
Thanks every body for your input
Michael
Michael,
There will be a pricing seminar given at the Northwest Industrial Woodworking Expo
in November. It will be presented by the Cabinetmakers Association. For a small shop just starting out it is well worth attending.
http://www.northwestwoodexpo.com/se/events_education.cfm
http://cabinetmakers.org/
Good Luck
Charles
Charles,
Thanks I will definetly keep it in mind and if possible attend.
Michael
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