Went through all the numbers and came out close to $8000, which seems a little low. The zoom room people list that their centerpiece, w/o the bookcases I’m adding start at $6995. I feel I’ve covered all the angles and hit everything I need for this project, but am a little concerned the price came in so low. I figured 160 hours in labor, which I was thinking might be a little high. Anyone have any thoughts? I’ve attached a pic of what I came up with for the design. Oh, it’s 82.5″ high, bookcases are 28″ wide and centerpiece is 62.5″ wide.
Replies
Hmmm... you say you are buying the bed unit for $6995, and you will buy lumber and create and install shelving and estimate the labor at 160 hours. The difference between the $8000 and the $6995 is only $1005. Not sure what your lumber costs are, but probably several hundred dollars, but if we disregard the wood and divide the $1005 by your 160 hour estimate you only charge $6.28 an hour?? It does sound like you are way too low in your estimate.
Bruce
Sorry for the confusion. The company lists that THEY will do the bed component part, with cabinetry for $6995. That is their pricing. I do not know what they will charge for only the bed. That is up to the client. I am only looking at constructing the part that holds the bed components, plus the bookcases. The company lists that they will send plans to "your cabinetmaker" if you want a custom made look. I'm that cabinetmaker.
Edited 2/19/2008 8:04 am ET by ripleylynn
He will have to confirm, but I think he means that the company sells a center unit, including the "furniture" for $6,995, (ie. the competition) and his estimate for making a piece with a somewhat similar (presumably) center unit and two side units is $8,000. So basically it is two side bookcases that cost $1,005 extra. (By the way, does the companies $6,995 price include installation or is it extra.)
The questions are--how comparable are his and the manufacturer's center units. If his are essentially identical you can't expect to charge to much more than the same thing elsewhere. The more unique they are--fancier veneer, better, more durable joinery, installation, and local service, the greater the premium that can be charged. Assuming his will function just as well, the $6,995 is a floor for the center unit. So how much premium for your particular custom cabinet will the client likely be willing to pay.
Then you need to ask whether $1,000 for two side book cases is the proper price. A lot depends on the design. It seems a bit on the low end of reasonable. Supposing that's about what you would expect for the bookcases alone--that means you aren't charging any premium for the center unit.
A lot depends on the client's needs. To they have very specific custom requirements, and seem willing to pay for them, or are they more price sensitive. Would they faint, or start looking elsewhere, if you gave them a $9,990 price.
The exercise about man hours and material costs and overhead are to determine the MINIMUM price at which you would be willing to take on the job. That's only a first step--the easy part--of determining the price. But the price you will charge the customer also depends on your best guesses about how much the client will value your work above your minimum selling price. That depends on lots of things--how close is the perceived competion in price and quality, other custom cabinet maker competion, the overall relationship with the client, their financial situation, etc.
ok, just spoke to the zoom room guy. They do the installation of their bed after I am done. What I was looking for was whether that time seemed reasonable to make a "shell" for a queen size bed and two bookcases. However, after thinking about this today, I think around 100 hours is a better time estimate. That includes installation. As far as the client fainting if they saw $9990, I don't think so. This is a new designer I am working with and the clients are very high end. I have not met them, they are still at their former residence in another state. However, this is the 2nd job I'm working up for the client. The first one will be installed next week, an 8' by 10' bookcase with doors. Pretty straightforward and going very quickly.
thanks for all your help.
ps- I am not a "he" :)
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