Shop Rates

[Mike OMelia]

I am trying to figure out how to cost stuff. I realize this is a very subjective topic. But, if someone were to ask you to provide wood blanks, 1/8" thick, 8" wide, maybe 2' long and wanted 50 of them, what would you charge per hour? Tools involved: bandsaw, thickness sander, table saw. I am leaving the cost of the wood out of this on purpose... thats just additive. (maple, walnut, cherry)

Thanks

Mike

[Jeff Rowley]

Is this something you do for a living, or something you do on the side because you love woodworking?

If it was a business, pick a reasonable hourly rate and stick to your guns. OTOH, if you have the tools and would be doing some work anyway, and this is just bonus money, maybe price yourself a bit lower so you can get a few more of these 'bonuses'.

I build poker tables. I enjoy it. I have fun doing it, and would probably be doing it even if they weren't for sale. As a result, when I can find someone to pay for one, that's great, I'm getting paid to do something I love anyway.

As a result, when someone asks me how much one costs, I tell them it's real easy. We'll determine what they want, and order the materials. They'll pay for the materials up front. When it's complete they write a second check for the same amount. This flies a bit in the face of conventional wisdom which says to charge 3x the cost of materials, but like I say it's a hobby, not a business.

You need to determine what you want out of this. For some it's a business and you need to price accordingly so that you can pay overhead, taxes, etc. If it's a hobby and it just helps cover the cost of your addiction, that's great too.

[Anthony Whitesell]

On tasks like that, I would charge the cost of a saw blade, a sandpaper wrapping (or two), a table saw blade, plus the wood and ~$10-$15 per hour for my time and electricity. This way a get a little something for my time, and I'm not out anything that "gets used up" in the process.

[Adam Cavaliere]

Do you include finishing in that cost? That can be a pretty big undertaking (for a small amount of money) when considering the amount of time finishing can take.

Adam

[Mike OMelia]

No finishing costs. Just thin, wood blanks.

[David DeCristoforo]

My first question would be "How flat do they need to be?" Because you know that if you are resawing 1/8" slices, they are going to want to warp. As to how much you should charge, this is an age old question that each person has to answer for themselves. Obviously you have to charge at least enough to cover the materials cost, the cost of "consumables" and your operating costs. After that you have to decide how much you want or need to earn. Loving your work is fine but you cannot work for love unless you have another source of income.

[Mike OMelia]

I build guitars... eventually to sell. And I have a day job.

I think I will use the 1x materials cost and see how that compares.

[Larry Edgerton]

Shop time is $45 Hr. Period.

[travis howe]

I'm not "in business" but just tossing out some initial thoughts on this.

Would it not be better to treat, tool usage, wear and tear, and other materials as soft costs to get a general idea of what it costs you to do this outside of your time. Then figure out what your time is worth in general sence in terms of hobby or not, difficulty of project, etc to determine an overall hard cost to bill? I'm challenged with giving anyone a pure hourly rate because if I spend more money on better and faster tools then I'm loosing money right?

[Adam Cavaliere]

I wish I could say what my time was worth when figuring in my hourly costs for projects, but my rate is way too high to put against a woodworking project. The reason for this is that it is my profession that I would be figuring out my hourly rate against and that is much different from a hobby.

Now if this was professionally, then obviously you need to figure out how much you need to live comfortably, but I know that wasn't in the scope of the question as this seems to be more of a "hobby rate", rather than a professional rate.

[William OConnell]

55$ a man hour. Often I have more than one of us working on a project when it makes sense. Like one guy catching 14' long stock out of the tablesaw. or one guy sanding while the other does whatever.Its just 58 an hour period. Its non negotiable. I usually just price jobs its better for me actually.
Buy the book "Pricing your work" its insiteful. If you do this for a hobby which so many here do and you charge its no longer a hobby but a job. From what ive read here over the years its a job that pays below minimum wage for most hobbiests.

[Karl Brogger]

I do $50/hr for shop time, $30/hr in the field. Material and hardware is marked up %50. And I'm probably on the cheap end of the spectrum around here for marking things up, about on par with everyone else for shop rates.

[Mike Heidrick]

I am a learning novice.

I am making a commisioned TV stand. 2X materials.

I keep telling myself - $20 an hour for shop time for friends.

Man I have a HARD time charging friends. I just want to help them too much! Mostly because I can and no one else they know does this type of work (should add the words for free at the end of the last sentance).

How do you charge friends????

[Rick Fisher]

Charge what the market will bear. If you dont, you wont be succesful.

This is the most common problem with small business. Being a good woodworker doesnt mean being a good businessman.

There is an popular expression; take 10 really good businessmen and tell them to become contractors, 9 will succeed. Take 10 really good carpenters and tell them to become contractors, 1 will succeed.

How much would it cost for this fella to get the same materials elsewhere? Charge a bit more than that and deliver good product, on time.

[Rick Lucrezi]

I just finished a side job that turned out to pay 3 times what my day job pays. A friend is a sales person who turned me on to a business for extra cash. It has potential to to be big. I looked at the competition and agreed to match their rate. Truth be told I did not think I would make much. I reinvented the wheel and found a way to make the stuff pretty quick. I could have lowered my price after the fact and still made out ok. Then I asked my self why? Why shouldn't I profit from my time and experience. My ability to solve a problem and the tools I invest in are worth something. Its a far cry from these clowns making a million a year, and I sleep good at night.