Woodworker's Journal 2008-32-1, страница 16
The bedside table (above) and bookcase (below) were built by Greg Wood. All decisions affecting Xylos Gallery are voted on by members like Greg Wood, who made the two pieces at right. How Much to Charge Tips on Pricing Your Work Have you ever wondered what to charge for something you made? In a gallery? Selling to a neighbor? Virtually every handmade product has a "right price." Charge more and it won't sell; charge less and you're losing money. Finding the right price requires five separate calculations to determine costs for materials, labor, overhead, profit and selling expenses. You can calculate these by hand, or use your computer and a spreadsheet. For instance, let's price the round-top table featured in the October 2005 Woodworker's Journal. For starters, it took two and one-half hours to make. The materials consist of the actual parts used to make the product: the cost of the wood, plus any mechanical parts, such as hinges, mechanisms, etc. The table has 12 board feet of oak, at $3.25 a board foot, so the material comes in at about $39.00. Labor is calculated by the hour. Suppose you want to make $75,(XX) a year. If you take four weeks vacation a year and work 40 hours a week, then you will work 1,920 hours a year. Divide 75,000 by 1,920, and you get $39.00 an hour. The table took 2.5 hours to make, so multiply $39.00 by 2.5. The labor cost for the table is $97.50. Add this to the materials cost for a total of $136.50. Overhead consists of the rental and utilities of your shop, tools, glue, nails, sandpaper and finishing materials. An industry average is 15 percent. Multiply your total (of materials and labor) by 15 percent. For the table, multiply $136.50 by 0.15. Add this amount, $20.50, to $136.50. The total cost (materials, labor, and overhead) for the table is now $157.00. Profit is the amount added to cover business expansion. Add 10 percent of $157.00 ($15.70, but round up to $16.00), and you have a price for the table of $173.00. This is the value of the finished table sitting on your workbench (the "workbench price"). If someone comes to your shop and picks up the table, you could charge them $173.00, because you haven't incurred any selling costs. At your workbench price, all of your shop costs are covered. However, if they bought the same table in a store, it would cost them $400.00 because of selling expenses. Continued on page 28... (Circle No 109 on PRODUCT INFORMATION lorm) Williams & Hussey Machine Co.. Inc 800.258.1380 www.williamsnhussey.com Variable Feed Motor GS1 Guide System Deluxe Switch Heavy Duty Cord 7 Year Warranty Multi-Pass Kit Vart-Faad Kit I Address I City/State/Zip I E-mail I Woodstock Soapstone Co | 66 Airpark Rif, Di'pl. 3066 |_\Vt->t l ob.inon. NH037S4 FREE COLOR CATAI Name _ vf'l't' If (l Feed Your Passion, Not Your Stove! Replace your old workshop stove with a Woodstock Soapstone Stove and enjoy: •8-12 hour burn times • Steady, even heat • Fine craftsmanship & beautiful stone • Wood or gas. no power required Woodworker's Journal February 2008 27 |
