Pricing Dilemma:
A hurdle that I have seen in myself and unfortunately is still a hard task for me to overcome in my woodworking is pricing my product. I want to get paid for my time and hard work, and like everyone, the more you get paid, the better. However, I started my woodworking because I am cheap and felt as though I could just build the desired wood product rather than pay for someone to build it for me. Many times I was right. I was cutting out the middleman and just paying the cost of the materials and sacrificing my time. With a project built for me, that is fine. But, when building for others, what is your time worth?
The cheap “frugal” mindset that started this venture for me, also leads me to price as though I am the consumer that is as cheap as me. I question how much this product is worth. One practice I still do I’ll simply ask. I’ll ask close friends and family what they would consider reasonable for this product. Explain that you want an honest answer on what they would consider reasonable if they were buying it from someone they don’t know. I want their feedback because if the price is unreasonably low it might not be worth me continuing to make the product.
I do have a formula, and don't get me wrong I have got better about using it. It is the mathematical approach to making the product make sense. I will plan the project. I will assume it will take me *blank” hours. I will also determine how much materials are needed. Then I will plug the number into the formula.
Hours it take = T (time)
Hourly Rate = HR
Materials = M
M+(T*HR*1.5) = Total Cost
This formula gives you a concept of your hourly income you are making but also the 1.5 allows for business growth and or future expenses such as new blades or even replacement power tools as they give out. There is always an unfactored wear and tear on your equipment that eventually will need to be replaced.
As you price your products, you will learn that some people simply want to pay unrealistically low prices. They will have an idea price that is lower than just the material alone would cost you. I advise you to stand firm. Know your value of your craft. It is okay to let some people walk away. These are not really the clients you want in the long run. Continue your practice and grow your business.
Date of Blog 03.19.2025
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