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Forum topic by pashley posted 258 days ago 1568 views 0 times favorited 50 replies Add to Favorites Watch
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pashley

1022 posts in 2341 days


258 days ago

In my latest ShopNotes blog post, I explore why sometimes you need to charge more.

http://newmissionworkshop.com/2013/12/04/charge-more/

-- Have a blessed day! http://newmissionworkshop.com


50 replies so far

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Puzzleman

328 posts in 1568 days


#1 posted 258 days ago

I agree with your post wholeheartedly. This applies to smaller items as well as larger items like your desk. It is all in the customer’s perspective. If you can’t sell your product at a fair price, don’t lower the price, change your customer base. If you get too busy and can’t get all of your work done, you must be in demand. When in demand, you can get a higher price.

-- Jim Beachler, Chief Puzzler, http://www.hollowwoodworks.com

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Knothead62

2364 posts in 1585 days


#2 posted 258 days ago

I saw a demo by a master wood turner. When asked about his fee, he stated that he charges $1.00 per minute on the turning plus cost of material.

View Loren's profile (online now)

Loren

7386 posts in 2272 days


#3 posted 258 days ago

You didn’t say whether the customer accepted the higher price.

There’s the rub.

-- http://lawoodworking.com

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404 - Not Found

2544 posts in 1593 days


#4 posted 258 days ago

Is it moral to charge someone more because they have electric gates?

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AandCstyle

1286 posts in 881 days


#5 posted 258 days ago

I was in the pharmacy business and the drug manufacturers priced their new products to be just less than competitive therapies. For example, if the standard treatment for you-name-it-osis was $10,000 the drug company might charge $9,000 for their product. It then was an easy sale in that their product was 10% cheaper than the standard therapy. The cost of production is irrelevant.

In your case, the cost of new office furniture is astounding as you have learned. You need to price just less than comparable products. Take a look at this USED Gunlocke desk. Unfortunately, I didn’t find any prices listed for new items, but this starts to give a basis for comparison.

-- Art

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pashley

1022 posts in 2341 days


#6 posted 257 days ago

Loren: Yes, I did get the job.

The Lumberjock I think you would have a point if the customer didn’t have a choice – for instance, if his basement was flooding, and I demanded a higher price then I would for the average Joe in the same situtation. However, this customer is at his leisure, and can shop around, and I have that pressure that he may go somewhere else to keep in mind when I set the price.
AandCstyle
My brother works in the pharmaceutical business – the markup on drugs would make your eyes explode. This is why you are seeing drive through pharmacies, and Rite-Aids popping up all over the place like dandelions – because there is a lot of money in it.

Regarding comparisons for this desk – I looked at 12’ conference tables made by the Amish, and their filing cabinets as well – which is comparable work to what I’m doing – and they were high as well. They even up charged for QSWO by a lot. If you look at this Amish conference table,
select the QSWO option, you come up with $7290 – and that’s not even including the three large cabinet drawers I’m making for him. My price was more, of course, but if you add in even just two two-drawer small filing cabinets, you add another $2k. I came in under that.

-- Have a blessed day! http://newmissionworkshop.com

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pashley

1022 posts in 2341 days


#7 posted 257 days ago

By the way, here is a rendering of the project – the desk goes against the back wall and touches both side walls, 12’ x 3’ x 1”

-- Have a blessed day! http://newmissionworkshop.com

View Loren's profile (online now)

Loren

7386 posts in 2272 days


#8 posted 257 days ago

Learning how to bid jobs is one of the trickiest things
in professional woodworking.

In the end for casework I don’t think there’s any substitute for
acquiring the specialized machinery that assists in getting more
boxes made faster. A one-off built in is not a very big
job in the bigger scheme of things, but in bidding on
longer runs of cabinets the client liking us or being charmed
by the other work we’ve done lessens in value because
they will often be getting several bids. While they will
look at price and a small minority of clients will go with
the highest bid (and slickest presentation), they are not
that common. On the other hand, many clients rightly
are not sure about hiring a lowball bidder. Stories of
take-the-money-and-run cabinet guys are common
and of course some cheaper vendors are barely competent
and wiser clients understand this.

-- http://lawoodworking.com

View Clint Searl's profile

Clint Searl

1417 posts in 985 days


#9 posted 257 days ago

You have to resolve the ethical issues yourself. If the customer accepts a bid that you adhere to, then shame on him if he pays “too much.”

-- Clint Searl.............We deserve what we tolerate

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CessnaPilotBarry

885 posts in 734 days


#10 posted 257 days ago

Is it moral to charge someone more because they have electric gates?

What the market will bear…

-- It's all good, if it's wood...

View Mainiac Matt 's profile

Mainiac Matt

3867 posts in 952 days


#11 posted 257 days ago

Does anyone esle find it ironic that the Amish conference table is sold on the internet :^)

-- Pine is fine, but Oak's no joke!

View GOOD LUCK TO ALL's profile

GOOD LUCK TO ALL

418 posts in 351 days


#12 posted 257 days ago

Is it moral to charge someone more because they have electric gates?

Question is, do you charge less because they don’t?

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mporter

223 posts in 1202 days


#13 posted 257 days ago

I am confused, how in the heck did you come up with 2K in materials? Especially if part of it is made by plywood.

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Mainiac Matt

3867 posts in 952 days


#14 posted 257 days ago

I wish I could get the sales crew where I work to buy into this…. as they routinely under price (IMO) short order custom jobs.

One of our competitors is the BIL of our old sales manager, and the guy is a 65 year old dynamo of energy who knows our industry and region like no one else. We jokingly call him the Grand Poobah!

He can look at a job and snap his fingers and tell you what it “should” cost….. as in, what the market will bare.

On large volume repeat business, he goes in very competitively and then focuses on efficiency.

On low volume, infrequently run business, he goes in high and doesn’t blink an eye for one second of hesitation if he loses the job.

Excellent sales guys can smell money and quickly and intuitively “qualify” their leads. If it’s not worth their time, they politely pass it on to the next guy.

Your time is money… and you can’t waste it where there isn’t any.

Unfortunately, most small businessmen are desperate these days.

-- Pine is fine, but Oak's no joke!

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Monte Pittman

13716 posts in 962 days


#15 posted 257 days ago

I am bringing up my prices to meet the local market. I am not sure that I would charge more just because I think that the client can pay more. Maybe part of that is that I am in a small market and I am not faced with high-end buyers regularly. Nest year I am hoping to get into our largest store featuring custom furniture. My opinion might change then.

-- Mother Nature created it, I just assemble it. - It's not ability that we often lack, but the patience to use our ability

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