Nick’s got a nice formula there, but I don’t see profit. It should be a separate line item, a percentage, and that money means that your business can thrive and grow. If that’s not there, why do it.
Here’s another one:
Material cost + extras cost x 125% plus (hours times your shop fixed costs/hour) plus your labor rate x hours = $123.45. times your profit percentage, say 114%, = selling price.
Your fixed costs should include rent, utilities, insurance, licenses, taxes, tool maintenance and supplies such as stain and glues. And I may have forgotten some stuff there.
Kindly,
Lee
-- "...in his brain, which is as dry as the remainder biscuit after a voyage, he hath strange places cramm'd with observation, the which he vents in mangled forms." --Shakespeare, "As You Like It"
