If You Sell Products How Do You Charge

[Ken Massingale]

I can calculate my rates for furniture and lathe turnings, but I'm not sure how to charge for signs, plaques, etc. done on 'The Machine'.

I'm thinking the carve time is the key.
If I may ask, how do you guys that sell calculate prices for these hobby projects?
Thanks
k

[deemon328]

Use your current business model, plus:


hourly design fee for software time
your hourly rate for the CW cut time. I like to think of the CW as a duplication of myself from a labor perspective.
special jigs or bits for a custom projectNote that 'use your current business model' covers things like tool wear, depreciation, lights and heat expense, and anything that any other tool would get expensed out as.

[twinpeaksenterprises, LLC]

Deemon pretty much said it all on this subject, I would also calculate in the wood specirs factor. As in i could do you one cheaper in poplar than say a walnut or cherry piece.

[pkunk]

One other factor that has entered into my equasion. What will the market bear? At my shop rate, selling on ebay is out of the question. I can however get $60 hr here in one of the poorest counties in a poor state. You have to find out what your local economy will bear.

[deemon328]

Heh, silly me forgetting about the WOOD!

[The "DH"]

When I'm working up a est. for a customer I also look at will this be a design I'll use again, if the answer is yes then I try to spread the cost of design time over several jobs (keep them coming back), if the answer is no then my rate will be much higher. I avg about $45 dollars an hour after materials...

[twinpeaksenterprises, LLC]

I wasnt being critical Deemon. I was just putting my two cents in thats all. I just mentioned that cause i dont really sell carvings i just process finished lumber.

[Router-Jim]

Don't forget to add any pattern costs.

[deemon328]

Oh, please, no offense taken. I was poking fun at myself for forgetting the most important part :)