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Charge for your shop time or you're paying to work

A pricing formula that survives contact with real customers, plus how to take a custom order without getting stuck building somebody's idea for free.

By Dean Shaw · Gear & Garage5 min read
Charge for your shop time or you're paying to work

The fastest way to lose money in a woodshop is to sell a walnut table for $180 because the lumber cost $60 and you felt strange asking for more. You didn't sell a table. You bought yourself a weekend job at minimum wage and donated the sawdust.

So set your number before anybody asks. Write it on a card and tape it to the wall over the bench.

The formula that actually holds up

Four parts. Materials, time, shop, margin.

Materials, plus waste. Add up the lumber, the glue, the finish, the sandpaper, the hardware. Then multiply by 1.25. You won't get a usable board out of every board foot you buy. Knots, checks, a rip that wanders, the piece you cut an inch short at 9 p.m. That 25 percent isn't padding. It's the wood in the offcut bin.

Time, at a real rate. Pick an hourly number you'd be willing to work for and don't apologize for it. If a plumber can't get out of his truck for less than a hundred bucks, you doing dovetails by hand at $15 an hour isn't humility, it's a math error. Somewhere in the $30 to $45 range is where most hobbyists-turned-sellers land, and you can move up as your work gets faster and better. Track the hours honestly, including the glue-up that took forty minutes because you couldn't find the right clamp.

Shop cost. Blades dull. Sanding belts die. Sandpaper is a consumable, not a tool. Your dust collector filter isn't free and neither is the electricity. Add ten percent of materials plus labor and you've covered it roughly, which beats covering it not at all.

Margin. The part that buys the next jointer. Twenty percent on top. This is the money that turns a hobby into something that grows instead of something that slowly eats your paycheck.

Run one all the way through

Say a walnut end-grain cutting board, 12 by 18, an inch and a half thick.

Lumber: call it five board feet of 8/4 walnut. Whatever your local yard charges, multiply and add the waste factor. Add glue, mineral oil and beeswax, a couple of sheets of paper. Now you've got a materials number.

Time: milling, ripping the strips, first glue-up, flattening, crosscutting, second glue-up, flattening again, routing the juice groove and the finger grips, sanding to 220, raising the grain, sanding again, three coats of oil. That's three to four hours of hands-on work if you're not fighting anything. At $35 an hour that's $105 to $140 in labor on one board.

Add the shop ten percent. Add the twenty percent margin. You'll land somewhere well north of what the guy at the farmers market with the pine boards is charging, and that's fine. You're not selling to his customer.

Here's the lever nobody uses: batch. Mill enough stock for eight boards at once and your per-board time drops by half, because setup is most of the work. Same fence setting, same router bit, same finish session. You make one mess instead of eight. Price the board the same and keep the difference, or price it a little lower and sell twice as many. That's the whole business, right there.

Where you sell changes what you can charge

Farmers markets and craft fairs. Great for cash flow, brutal on your Saturday. Booth fees run from nothing at a church lot to a few hundred at the big holiday show, so find out first and know how much product you have to move just to break even. Bring three price tiers: something under $30 that anybody can say yes to, something in the middle, and one showpiece that makes people stop walking. The showpiece often doesn't sell that day. It doesn't have to. It's the reason somebody takes your card.

Online. Shipping a cutting board costs more than new sellers expect, and shipping a chair will make you cry. Sell small and flat online, or sell local pickup only and use the listing as a catalog. A furniture piece is a local sale ninety-nine times out of a hundred.

Consignment. A gallery or a home goods shop takes a cut, commonly somewhere between a third and half. That's not robbery, that's rent and staff and foot traffic. But price it with their cut built in before you hand anything over, or you'll be working for the store.

Repeat commercial. This is the quiet one. A realtor who buys eight engraved boards every December as closing gifts. A coffee shop that needs twelve identical tabletops. A wedding venue that wants signage. One of these beats a hundred strangers at a market, because they come back and they don't haggle.

Custom orders, and the rules that save you

Custom is where the money is and where the misery is. The difference is paperwork, and it takes ten minutes.

Take a deposit. Fifty percent, and say up front it's not refundable once you buy wood. People who won't put money down were never going to buy. You'll find that out in week one instead of week six.

Get it on paper before you touch a tool. Species, dimensions, finish, edge profile, hardware, delivery date, total price. A sketch with numbers on it, even a bad one, and both of you agree to it by text or email. That's your scope.

Price changes when the scope changes. Client wants a drawer added? That's a new number and a new date. Say it kindly and immediately, the first time it happens, and it'll never become a fight.

Pad the delivery date by two weeks. Finish takes longer in a cold garage. Lumber arrives twisted. Life happens. Being early is a gift; being late is a refund conversation.

Photos of the actual wood, before glue-up. Send them. "Is this the grain you want on the top?" Ten seconds of typing kills an entire category of argument.

Walk away from a few things. The customer whose first message is about a discount. The one who says "it should be pretty simple for you." The one who wants it by Friday and it's Wednesday. And the one who can't describe what they want but will know it when they see it. That job will consume your month and end badly no matter how good you are.

The business side you can't skip

Selling regularly means you're running a business, and every state and province handles registration, sales tax and resale certificates differently. Some let you buy lumber tax-free with the right paperwork. Talk to an accountant once, early, for an hour. It's the cheapest tool you'll ever buy and it's the one that keeps you out of a letter you don't want to open.

Keep receipts. All of them. A shoebox works if a spreadsheet won't.

The small things that bring people back

Sign your work. Brand or stamp on the underside, small, with the year.

Include a care card. Three lines on how to oil a board or what not to put a hot mug on. Costs you pennies and it makes the piece feel finished.

Deliver it yourself when you can, carried in with a blanket, set in place, level checked. Nobody forgets that, and nobody who gets that asks for a discount next time.

Your wood doesn't care what you charge for it. Your Saturday does.

Dean Shaw

Gear & Garage

Reads the warranty, the parts list and the long-term owner reviews before anything else. Trucks, tools, watches, and the cheap version that costs more.

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