Pricing!

Pecker31

Hi I am here for a little bit of advise. My boyfriend is a cabinet maker and it excellent at what he does, he is thinking of setting up a small business at home making bowls, lazy susans, platters, chopping boards etc.

How much would you expect to pay for them? Its pricing them is the hard bit as a lot of time and energy go into them but he still wants to sell them.

For Eg a 12" maple platter we were thinking €70.

What are peoples opinions on this? He is also handling Walnut, Pine, Oak etc.

knickerbocker

Nice idea for a business...........

As to what you charge should be calculated on the basis of what it costs to produce!
Example:

Rent/rates on workshop €1000 pm
Electricity €100 pm
Insurance €50 pm
Misc.: phone/office supplies, etc €20 pm
Tools/maintenance €100pm

Total €1270 pm

Divide by 160hours worked per month = €7.94 per hour

Material cost of bowl €15
3 hours work €23.82
Packaging €5.00
Sub total €43.82
Profit €21.91

Price of bowl €65.73

recipio

I'm just an amateur but I wonder how saleable is the product line.? Every supermarket and chain store is packed with cheap versions of these from the 'Far East '
They would want to have something special to put them in the premium price bracket ?

thomur

You will be competing against the hobbyists as well. I paid 40 for a spalted beech platter at the Moy Festival earlier this year

Miname

I know a couple of lads at this and they find it pretty hard to make ends meet. You'll have to factor in the cost of craft fairs and transport as well. The cheapest insurance I know of is 1200 per year and that doesn't cover most workshop machines. Then If the rates man gets a hold aswell it fairly drives costs up. All in if keep it as a hobby and sell privately. There's too many lads enjoy woodwork which means they are happy making the likes of these as a hobby.

Pecker31

Miname wrote: »

I know a couple of lads at this and they find it pretty hard to make ends meet. You'll have to factor in the cost of craft fairs and transport as well. The cheapest insurance I know of is 1200 per year and that doesn't cover most workshop machines. Then If the rates man gets a hold aswell it fairly drives costs up. All in if keep it as a hobby and sell privately. There's too many lads enjoy woodwork which means they are happy making the likes of these as a hobby.

Hi Thanks for replying, ya he is keeping his full time day job and doing this in the evenings as a hobby but maybe with the potential to sell them on to friends etc, just trying to find the base for good pricing if you get me