Custom woodworking business?

[Darcy Warner]

I plan on selling my prescription drugs when I get old, or just work until I die.

[Martin Wasner]

Oh sure, take the easy route

[andy bessette]

...open your own shop, you work 40 hours, at least 20 of those wont be chargeable...

That was my point...starting out, one should not expect to make a killing on every hour worked. And, to bring in business and develop a reputation and clientele, one might have to underbid some other hungry woodworkers. The hourly rate you wind up getting, to start, will wind up being whatever it is, not some fantastic number pulled from thin air. Once you are established and your fixed expenses are being paid, then you can get picky about only accepting the most profitable jobs.

The custom woodworker, working for himself, gets no pension beyond his investments and what he might sell his business for. It's not for everyone.

[Darcy Warner]

That was my point...starting out, one should not expect to make a killing on every hour worked. And, to bring in business and develop a reputation and clientele, one might have to underbid some other hungry woodworkers. The hourly rate you wind up getting, to start, will wind up being whatever it is, not some fantastic number pulled from thin air. Once you are established and your fixed expenses are being paid, then you can get picky about only accepting the most profitable jobs.

The custom woodworker, working for himself, gets no pension beyond his investments and what he might sell his business for. It's not for everyone.

Sounds great, it's what most people think you should do, it's also why so many don't last very long.
I like making money, not owning a job.

[Mark Bolton]

That was my point...starting out, one should not expect to make a killing on every hour worked. And, to bring in business and develop a reputation and clientele, one might have to underbid some other hungry woodworkers. The hourly rate you wind up getting, to start, will wind up being whatever it is, not some fantastic number pulled from thin air. Once you are established and your fixed expenses are being paid, then you can get picky about only accepting the most profitable jobs.

The custom woodworker, working for himself, gets no pension beyond his investments and what he might sell his business for. It's not for everyone.

This is where your lost. The numbers in this thread are not arbitrarily pulled from thin air. Read any SBA publication. There are bare minimums to.merely breathe air in business all of which are likely more than you think your under bids can afford. And it's been stated in this thread yet conveniently ignored. You dont get work by under bidding. Period. You get work by delivering.

[Chris Fournier]

$100/hour? Go ahead and be honest about the time it will take to design, procure materials, build, finish, install/deliver and bill out the job. Show your client that quote and move on to your next quote! You are now in the quoting business at $0.00/hour. $100/hour which I have indeed made in my shop was NEVER EVER on custom work but on production work that I had refined in process and knocked out in batches - scales of economy. $100/hour is a commercial contract rate when you have it right, work done for a corporate client. And even then you are knocking it out of the park. In my opinion, if you tell me that you are getting $100.00/hour woodworking you are not being honest about your time on the job.

Just like everyone I interview for a job these days and I ask them how much they expect to make - $100K. 22 years old to 65 years old. Car business. Simple fact: we all are delusional about what we want to make $$$. And our financial reality confirms this.

[Darcy Warner]

I have customers I bill by the hour. Its half what I pay my attorney, I think 250.00hr for him is a deal.

[andy bessette]

I have customers I bill by the hour. Its half what I pay my attorney, I think 250.00hr for him is a deal.

What specific type of custom woodwork are you billing at $125/hr?

[Darcy Warner]

What specific type of custom woodwork are you billing at $125/hr?

Reproduction millwork and architectural millwork repair.

[Patrick Walsh]

In my area “metropolitan north east” going shop rate starts at $75..

Does that mean every job the boss is making $75 hr straight up for produced work. No way as mentioned the trash needs to be taken out, lumber racks filled, bathroom cleaned, mistakes and changes to projects that can’t be charged resolved. Driving here there and everywhere. That does not account for bids meetings with clients paying the bills or a million other things.

I just build the stuff and this is what I see. Looks like a pretty hard way to make a living to me. I think there is a good chance I out earn my boss with all my overtime. I’d take working hourly as a custom cabinet maker woodworker any day over being the boss.

It’s 24/7 for my boss and a huge amount of stress to keep it all under wraps, work coming in, work going out, bills paid, debts collected and enough overhead to keep it all going when cash flow is low. I know he has a huge credit line, like huge and often has to use it all. I’m always paid on time thanks to this credit line.

Anyway I’m sure I’ll work till the day I die and unless he has some plan bigger than what he is currently doeing he will to. Well his wife will collect a nice pension so there’s that. Most custom woodworkers I know also have some kind of back story that allowed for money not being the most important aspect of their existence. In most cases it’s a wife or parent.

[Larry Edgerton]

In my area “metropolitan north east” going shop rate starts at $75..

Does that mean every job the boss is making $75 hr straight up for produced work. No way as mentioned the trash needs to be taken out, lumber racks filled, bathroom cleaned, mistakes and changes to projects that can’t be charged resolved. Driving here there and everywhere. That does not account for bids meetings with clients paying the bills or a million other things.

I just build the stuff and this is what I see. Looks like a pretty hard way to make a living to me. I think there is a good chance I out earn my boss with all my overtime. I’d take working hourly as a custom cabinet maker woodworker any day over being the boss.

It’s 24/7 for my boss and a huge amount of stress to keep it all under wraps, work coming in, work going out, bills paid, debts collected and enough overhead to keep it all going when cash flow is low. I know he has a huge credit line, like huge and often has to use it all. I’m always paid on time thanks to this credit line.

Anyway I’m sure I’ll work till the day I die and unless he has some plan bigger than what he is currently doeing he will to. Well his wife will collect a nice pension so there’s that. Most custom woodworkers I know also have some kind of back story that allowed for money not being the most important aspect of their existence. In most cases it’s a wife or parent.

Patrick, what I would not give for an employee that can see what you see!

The premier builder around here is Jeff Ford. Nice fellow, does exceptional work, and can charge basically whatever he wants. But his backstory is in his name.

I plan on working till noon on the day of my funeral.

[Larry Edgerton]

That was my point...starting out, one should not expect to make a killing on every hour worked. And, to bring in business and develop a reputation and clientele, one might have to underbid some other hungry woodworkers. The hourly rate you wind up getting, to start, will wind up being whatever it is, not some fantastic number pulled from thin air. Once you are established and your fixed expenses are being paid, then you can get picky about only accepting the most profitable jobs.

The custom woodworker, working for himself, gets no pension beyond his investments and what he might sell his business for. It's not for everyone.

For what its worth I agree. When you start out you are inefficient because of your tool selection and experience. The value of the end product does not go up because you are inefficient, your hourly rate goes down by necessity. As you add tools that speed up the work, the price of the product stays the same but the amount that you produce in an hour goes up, so the wage follows minus the amortization of the equipment involved.

And then if you are an idiot like me that hates production work it gets even tougher. I'm always learning new things and do not feel it is fair to the customer to charge them for my lack of knowledge or tools. For example I just did a series of free form tables and the first table took me three times as long as the last. I knocked back the hours on the first one when I billed out because in good conscience I feel it was my shortcoming that caused the time to be so high, not the customers. So I adjusted, I feel good, they are happy and I still make a good living. And, more important to me, I got to try something I had never done.