White chalk - or black sharpie - may be fine if you are labeling parts for orientation or rough milling.
But if you are looking to mark for precise cutting, here's why the blue tape is a boon: Once severed on the cut line, it provides the smallest of shoulders against which a chisel or saw will register. For myself, (Ham-hands of the world unite!) this allows me to saw right up to the line, and keeps me perfectly vertical. It works so well for me, it feels like cheating.
I use white chalk. I'll agree that the stick of chalk are imprecise. I use powdered white chalk which allows it to get into the incised line from the marking knife. Lee is correct, it turns transparent when you apply the finish and presents absolutely no problem. I've used this for over 15 years since a friend taught me the trick.
Dave Anderson
Chester, NH
I buy Prismacolor white by the box. I can't believe the price in that link though; I paid about 80 cents a pencil and a dozen will last me a few years. For joinery layout, the blue tape is great.
"A hen is only an egg's way of making another egg".
– Samuel Butler
Prismacolor Verithin pencils are much harder and hold a point better than the Premiers http://www.dickblick.com/items/20509-1001 Dick Blick stores sell them open stock for about $1.30 apiece or 12 for $10.50 and charges $5 for shipping if you buy online.
The best deal I found online is a box of 12 for $13 (including shipping) on eBay:
http://m.ebay.com/itm/252188437813.
This: http://www.amazon.com/Koh-I-Noor-Gio...oor+white+lead
Like the larger lead holders. Yes, you have to sharpen often, but it works great particularly for rough stuff. Blue tape and a marking gauge for the fine work.
Best change I made in this dept. was installing a 100w articulating lamp in my shop. I can see a knife mark on gaboon ebony under that lamp.
Bumbling forward into the unknown.
I use a Gelly Roll pen (Japanese I think) with white ink - available in most stationary/art stores (at least around here). The ink seems to sit on the surface and is easy to scrape off to make corrections.
I used to use a hand-sharpened white grease pencil (the type you peel away to reveal more colorant) but the prismacolor pencils just can't be beat - I happened upon them when my wife took up coloring. Do not go with the Crayola brand - they're a joke.
"For me, chairs and chairmaking are a means to an end. My real goal is to spend my days in a quiet, dustless shop doing hand work on an object that is beautiful, useful and fun to make." --Peter Galbert
Just an aside Lee, but I really like your avatar!
I stopped using chalk for any surface even near finish dimension after having it show up under the finish of a well sanded surface. obviously your mileage will vary. IIRC, the finish in that case was a waterborne acrylic poly, which may have had something to do with it.