Wondering about how much to charge for custom woodworking project? There is no definite answer for this, but these are some suggestions that worked for other people.
Competitive Rate
You can skip calculations by knowing the average price of the item you’re selling. This will also satisfy the client since he/she is likely to have canvassed prices.
Hourly Rate
If you want a simple payment scheme, charge by the hour. Know the hourly rates of your competitors and set yours around that cost. Estimate how much time the project will take and multiply that to your hourly rate.
Day Rate
Since most wooden creations take a day to complete, figure out how much you want to earn in a day. Consider how much your time and skills are worth. Charge more if you know you’re good and have a lot of experience.
Consider how many of the same item you can do in a day. For example, if your day rate is $400 and you can do 10 fancy valet boxes per day, charge $40.
Time Spent
Whether you charge hourly or daily, you need to be paid for the time spent in working. To make this easier, list everything you have to do to. Define every part of the workflow and give an estimated time for accomplishment.
Costs of Materials
Add the costs of materials to your hour/day rate. Have pricelists ready so you don’t have to waste time asking how much something costs every time you work on a project.
It’s recommended to charge full price for a material even if you would only use a portion of it. For example, if your work only requires half a wooden board, charge for the entire thing. This ensures that you won’t lose money over unused items.
Overhead Costs
Consider your operating costs—the costs of electricity, tools, sandpaper, and other things that will be used for the project. Remember that the time and gas you spend canvassing and shopping must also be compensated for.
Allow Buffers
Make room for mistakes by adding 10% of the cost of materials. Some errors may include buying replacements for items that are defective or of the wrong kind, increased prices, making repairs and adjustments, buying extra materials, etc.
Adjust for Supply and Demand
Increase the price when there’s high demand for what you are offering and/or if you’re the only one who is supplying the product. Decrease it when no one’s buying or if the item is commonplace.
Think About Discounts
Consider who your client is, too. You may have to make discounts for loved ones or people you’re trying to impress. Try setting a regular price and a special price.
To summarize, here is how to charge for a woodworking project:
Competitive rate: just know what everyone else is doing.
If you have an hourly rate: (hourly rate x hours) + costs of materials + overhead costs + buffer cost
If you have a daily rate: (daily rate / no. of items in a day) + materials + overhead + buffer
Adjust the prices according to supply and demand or if the situation calls for it.
Remember that there will be some days when you’ll sell a lot and some when you won’t sell a thing. Charging a flat rate may not be a good idea, especially if your income depends largely on woodworking. Adjust your prices according to your situation.
Please Share This Article 🙂
