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Pricing on a loft bed

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Forum topic by Sawdustmaker115 posted 08-23-2015 01:40 AM 757 views 0 times favorited 6 replies Add to Favorites Watch
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Sawdustmaker115

306 posts in 1189 days


08-23-2015 01:40 AM

Topic tags/keywords: question

hello everyone,
Wow! it’s been a while since I’ve been on here.

I need some help from you furniture guys.
Well my question is, I have been commissioned to make a loft bed and I really don’t know what a fair price I should charge for it. It will cost me about $800 in materials.
here’s a picture of the 3D model I put together…

-- Anthony--http://knottywoodshop.weebly.com/


6 replies so far

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AlaskaGuy

2406 posts in 1777 days


#1 posted 08-23-2015 05:23 AM

Well you want a good answer you need to provide good details.

As an example, the stairway, is it just a stairway or does each step have a drawer in it. If it has a drawers what hardware you going to use if any. Hardware come in many different configurations and prices. And of course more labor in building drawers.

-- Alaskan's for Global warming!

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Sawdustmaker115

306 posts in 1189 days


#2 posted 08-23-2015 02:26 PM

The stairs do have drawers, I am going to put full extension slides in them, and I am not going to use any kind of pull on the drawers, I am just going to cut out a spot were you can grab the drawer. I also will be making 3 more drawers in the desk also with full extension drawer slides.
Like I said though I have about $800 in material which includes all the hardware. I was kinda thinking of charging around $2,500 for this but I don’t know if that’s to much or too little.

Also I will be using pine to make this, I’m pretty sure that im just going to clear coat it with lacquer or I may use blo with some past wax.

-- Anthony--http://knottywoodshop.weebly.com/

View FellingStudio's profile

FellingStudio

93 posts in 1150 days


#3 posted 08-23-2015 03:51 PM

Well (a deep subject, I know) ...

What kind of wage do you want to earn, and how long will it take you to make?

The general formula is: Material cost + Wage x Time to complete (estimated time in this case) + overhead + profit.

You’ve got your material cost estimated, and you sound like a hobbiest, so let’s toss out overhead and profit, which leaves you with the question of how long, and what wage do you want to earn.

Having said all of that, $2500 seems like a good ballpark. It really comes down to how fast you can make those drawers.

-- Jesse Felling - http://www.fellingstudio.com

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pmayer

864 posts in 2533 days


#4 posted 08-23-2015 04:04 PM

You have your material costs so the other two variables to plug into your formula are your hourly rate multiplied by the number of hours that you believe it will take. That produces your baseline price quote. Take that and weigh it against other factors such as

- is this a project that you’d like to build regularly so you need to get the first one under your belt to work out the design?
- what is the going rate for projects like this in your area?
- does your quote include delivery and installation?
- how customized does this need to be for the space? If they can use a “catalog configuration” without any customization, then they can buy this at a price point where you can’t compete.

For comparison, here’s how I’d quote this:

- materials $1000 (I’m guessing that you missed something. Did you include hardware and finish?)
- hours = 45
- shop rate = $60/hr.
- Delivery and installation in 30 mile radius = $500

Total = $4200

-- PaulMayer, http://www.vernswoodgoods.com

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Sawdustmaker115

306 posts in 1189 days


#5 posted 08-23-2015 09:51 PM


You have your material costs so the other two variables to plug into your formula are your hourly rate multiplied by the number of hours that you believe it will take. That produces your baseline price quote. Take that and weigh it against other factors such as

- is this a project that you d like to build regularly so you need to get the first one under your belt to work out the design?
- what is the going rate for projects like this in your area?
- does your quote include delivery and installation?
- how customized does this need to be for the space? If they can use a “catalog configuration” without any customization, then they can buy this at a price point where you can t compete.

For comparison, here s how I d quote this:

- materials $1000 (I m guessing that you missed something. Did you include hardware and finish?)
- hours = 45
- shop rate = $60/hr.
- Delivery and installation in 30 mile radius = $500

Total = $4200

- pmayer

The real issue I have with coming up with a quote for this is like you asked ’’what is the going rate for projects like this in your area?’’ what would something like this go for in say a retail setting, in other words what would someone else charge for this. I did a Google search but I didn’t really find anything like this. I can’t seem to find any kind of competition to give me any sort of ground to base my design off of. After everything you’ve said I would like to charge around $3,600 but like I said I don’t know if that will just be ridiculous or not.

-- Anthony--http://knottywoodshop.weebly.com/

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pmayer

864 posts in 2533 days


#6 posted 08-23-2015 10:27 PM

You don’t necessary have to find a quote from another custom woodworker on this specific project to know what the going rate is. Having a general understanding of typical shop rates in your area for custom cabinet shops and furniture makers should suffice. This project is simple, so any professional furniture maker could bid on it, even if they have never built a loft bed before.

Getting a feel for pricing in your area might be tricky. You might want to take a look at CabinetMaker FDM’s annual pricing survey (http://www.fdmc-online.com/) which will give you a smattering of shop prices across the country, but not necessarily in your area. A general range on shop rates is $40 to $60 per hour, with generally on the higher end of that range on the coasts, and lower in the flyover states. California tends to be the highest, commonly in the $90 range. Comparing your pricing to competitors is tricky. In the CM/FDM annual pricing survey the typical range for a given project from low to high is about 3X. In other words, for this project one shop might bid $2000 and one might bid $6000. I’ve seen that variance factor as high as 10X, although a good portion of that was likely due to regional variation and a complex project spec that challenges the overly simplified bidding models used by many shops. Shops that charge by the lineal foot for cabinets, or some multiple of their material cost are vulnerable in complex situations.

Coming in priced fairly compared to competitors is important, but equally important is finding customers who value custom work. These customers are not easy to find. A high percentage of people, even those who are wealthy by most standards, will be comparing you to retail pricing, and in many cases expecting that you can come in cheaper than retail because they are eliminating the middle man. There are two critical aspects to this. The customer needs to understand, appreciate and value the difference in quality that you can provide. If they don’t get it, then you are wasting your time with them. The next aspect is that the project needs to require some element of customization that they cannot get from a retail store. If they can get by with standard materials, dimensions, features, colors, etc. that are available from retail, then it will be tough to sell them on the additional value that you can add to the project.

-- PaulMayer, http://www.vernswoodgoods.com

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