# Typical furniture markup percentage



## Patrickgeddes14 (Nov 27, 2018)

What do you guys use for a typical piece of yours? Construction markup is typically in the 7-15% range.


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## Patrickgeddes14 (Nov 27, 2018)

Bump


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## Gene01 (Jan 5, 2009)

25 to 50% over TOTAL production costs.


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## avsmusic1 (Jul 10, 2016)

Can you define "construction markup?" That percentage seems quite low. 
Also, are you including a set rate for labor into your production costs, or is that considered your "markup?"


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## MrRon (Jul 9, 2009)

I would compare my piece of furniture to a commercial piece, but from a quality furniture company and set the cost a little lower than the commercial price. At any rate, I would not go any lower than the 25 to 50% cost as noted by Gene Howe. Commercial furniture makers have the machines, jigs and fixtures + the wholesale price of materials that make private competition difficult. Unless you are a master furniture maker, it is hard to compete with the factory made items and turn a buck profit. I am not a master, and I have tried to make furniture for customers. Taking my time to do as good a job as possible, my profits were never better than 5 to 10% over materials. Labor was not included.


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## DrDirt (Feb 26, 2008)

+1 Mr Ron.

Work backwards from what similar pieces can be had for (At Good Quality… not Ashley furniture barn or Costco), and see if it is a space you can operate in for your own costs.

Remembering your customers can get a NICE piece from Ethan Allen delivered on Thursday….. what is the hook for your furniture piece to compete head to head or perhaps even command a higher price?

Maybe it is species… matching existing décor or finishes… or a custom size to fit a niche in their home etc.
Avoid the "I see this table and 2 chairs at Ikea for 149.99… what can you make it for"... that is a pointless conversation.

But also YOU have to deliver the quality.
Seen plenty of folks with canopies at Art fairs, with exposed nail heads not filled, extensive use of filler that doesnt' match well, and put together with Pocket screws (unplugged as well)…. You cannot make that stuff and say "Hand made American Heirloom Quality".


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## pottz (Sep 15, 2015)

yeah 7-15% is way too low for custom made furniture,i mean your not framing a house dont give away your time and talent for nothing.if you cant make a decent profit why do it.


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## Patrickgeddes14 (Nov 27, 2018)

These are typical numbers, been doin it 40 years. 50% sounds good to me


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## Patrickgeddes14 (Nov 27, 2018)

7-15% is after labor plus material and overhead


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## Gene01 (Jan 5, 2009)

Example: *ALL* shop costs=$100. Selling price $150.


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## controlfreak (Jun 29, 2019)

It's not what it costs to make it's what you "can" sell it for. If it looks like something you can buy in a store it is hard to justify a higher price. When you can throw adjectives in like custom, handcrafted and unique you should be able to command a higher price. Be prepared though you are going to need to do some selling to get it.


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## DrDirt (Feb 26, 2008)

> It s not what it costs to make it s what you "can" sell it for. If it looks like something you can buy in a store it is hard to justify a higher price. When you can throw adjectives in like custom, handcrafted and unique you should be able to command a higher price. Be prepared though you are going to need to do some selling to get it.
> 
> - controlfreak


+100


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## WoodenDreams (Aug 23, 2018)

One thing to sell is your quality. If you point out the difference in your construction vs. store manufactured (PDF & plywood, if not all PDF), you should be able to charge a nicer rate. My six sided chests start at $475, $565 if they have rails and stiles. add $35 for slide tray, $80 for aromatic cedar lining, and $35 for the name plate. Explaining and showing the difference of your work verses the furniture store which sell a veneered PDF chest for $299. People that want quality will pay for quality. I do have a waiting list of 3 to 4 months on orders for Hope and Cedar Chests built to order. Several are repeat customers that want other projects done also. Depending on what niche you want to specialize in, maintaining quality will set you apart from the stores. If you make pens, it seems like $35 is the going selling price, plus case.


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## PPK (Mar 8, 2016)

My opinion is to charge what you want/need, and if the customer doesn't want to pay it, they they are very free to move on. I think I've only quoted one or two potential clients that have thought I was too high and went elsewhere. Your reputation will advertise itself. This applies to custom things. If people want me to build something they see in a magazine or at Menards or Lowes or wherever for cheaper, I ALWAYS tell them to go ahead and buy it then. I won't undercut any competitor or big box store. That's a great way to lose money. In fact, I'll usually check to see what other similar furniture pieces are selling for, and compare my estimate to that and make sure I'm higher or at least matching.

If this is your only mode of making money, then you may need to be a little more competitive on pricing, but if you're doing a little gig on the side, this is the way to go, in my opinion.

I go about estimating and pricing my projects very much like a business. I have a loaded shop labor rate, I create a material take-off, and I apply a mark up on material, and then I add it all together. I'll put a profit margin on there too on some jobs. Keep in mind that markup is a loosely used term. Technically, markup would be anything over and above material AND labor. So the 7-15% is a very typical number for true cosntruction markup. If you're trying to get out of estimating your labor and overhead costs, then taking your material costs and doubling it will kinda sorta get you close. But this isn't true markup. And if this is the way you're going to price things, be careful because one markup factor will not apply to all projects. Example: you may sell an ornately carved piece of furniture that only has $50 of lumber and glue in it. If you charge $100 on the sale, you'll lose a ton of money, because the majority of cost was LABOR to carve it. Anyway, enough rambling. Hope you have lots of fun building, then sell your stuff, and then resume having lots of fun building again


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## Sark (May 31, 2017)

The big three factors in pricing:
1. What it costs you to make? Note: You've got to cover costs and make some profit. The point of your initial question.

2. What's the competition selling their product for? i.e. what's the market price? Are you competing against ikea or a master talent who is featured in Fine Woodworking or the woodshop around the corner?

3. What's your customer willing to pay? There were times when the customer was willing to pay 2x or 3x my bid. More often I was too high. When I came in about in the middle, I was most successful in winning business.


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## MrRon (Jul 9, 2009)

I would ignore other competitors and price according to what you think your work is worth. If you do super top notch work, you should be at the top of the competitive list, but a little less in order to establish yourself. Top notch work will include the parts of the furniture you can't see. Do not skimp on material in order to save a few pennies.


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