Originally Posted by
jTr
Okay, since that worked this time, I'll try to respond again:
You first need to establish whether you're vertical or horizontal.
Gene, who sells wooden table ware, has repeatedly shared with this community how formulated his processes and pricing are, and he's very successful.
I am horizontal - one month it's a kitchen, the following it is a custom piece of furniture with an entirely unique set of processes. This is where I thrive mentally - the variety keeps me happy, and I am constantly learning, updating and honing new skills. However, this makes the process of accurate pricing much more challenging. One person operations like us seem to suffer the same struggle - we give away more hours than we care to admit.
I do keep a time card, though seldom refer to it except to tally hours and see how I did. A few years ago, I altered the form to include a description of processes. What did I do all afternoon? Analysis of this is what helps me to make corrections in calculating cost of any given process. My pricing has improved since doing so.
Establish continuity of sub categories, such as drawers. I have graduated to a point that all I use is dovetail drawers, be it a kitchen, built in or free standing piece of furniture. I've also committed to a single style of high end, under mount drawer slide. I've realized they pay for themselves in savings over the cheap stuff. Every time I try to shave costs by using cheaper hardware, I loose it in extra time fussing for a good fit. Goal here is predictability, so every process you can formulate as a sub-category is a step towards accurate pricing technique. Bonus: nothing screams top quality furniture like a smooth, quiet drawer operation.
Wish I could tell you this can be done before you start your first project, but it really is something that takes time and evolution. Your business is going to be as unique as yourself - How swiftly do you work? Are you a perfectionist, or can you accept a realistic level of sufficiency?
I try to look at it this way: If the house cleaners are commanding $40 to $50 an hour, and the glass guys are pulling $75-90, you should be able to stand your ground as a custom designer/builder at least somewhere in that range.
best of luck on your new direction,
jeff
Remember: If it was easy, everybody'd be doing it.
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