Sunday, May 6, 2012

Woodworking as a Business

As part of my research component, I am interested in how much I would sell my project for, if I was selling it.  This is a very hard question as I am certainly not a professional trying to support myself with woodworking, so my costs are significantly less than a professional's.  So far what I can conclude from the literature I have read on pricing your work is this: it depends.

When I talked to Chris Lowe, he told me that he figures out how many hours it will take to complete each part of a project, and what the materials cost is, and uses this to calculate the total price.  A while ago I began making a detailed log of how many hours I spent on the stand, and on what.  Up to now I have spent approximately 20 hours on the build of this project, and have spent $55 on materials.  At a conservative $20/hr, that makes the total cost be about $415 not factoring in at least 6-7 more hours before completion.

However there are other ways to determine a price that take into account factors such as sale method, and the target market.  The most direct way to customers is (unsurprisingly) to sell to them directly.  However unless you already have a substantial customer base, you will have to put time and money into marketing your work, which takes away from your profits and production time.  Another way is to sell through something or someone, for example selling products through a gallery or a show.  Depending on the venue however, some of the purchase price will be given to the gallery/show.  Another important factor in pricing is your target customers.  How much are they willing to spend?  Can you justify your cost by the quality?

Because of my situation as a student, it is very difficult to make a hypothetical cost estimate.  I don't have to pay for my room or board, so my direct costs are only the materials cost at the beginning of the project.  Really I am just happy to have something work on that I know someone will value greatly.

http://www.thewoodwhisperer.com/articles/pricing-your-work/

http://bridgewooddesign.com/estimator/howto.htm

http://www.woodworkersjourney.com/category/pricing-your-work

Graves, Garth. Earn a Second Income from Your Woodworking. Cincinnati, OH: Betterway, 1997. Print.

1 comment:

  1. This is an excellent blog - how practical in terms of making money is this; but be sure you also write about the intangible rewards, the inner rewards; about your relationship with the piece, with the wood you use !

    ReplyDelete