I'm diving into woodworking and will be sharing a booth at farmer's markets this year. Here's the catch: I don't really have any overhead costs. I live in a part of the Great Lakes where timber is abundant, and I can access various types of wood pretty easily, almost for free. I usually gather logs while doing other tasks—like helping clear storm damage—so the only real costs for me are the occasional blade change or finishing supplies. I'm curious about how to set my prices. Should I go for equivalent market prices or is there a better approach?
4 Answers
You should definitely charge based on what the market will bear. A common rule is to charge about 3x your material costs, but since yours are lower, you have more flexibility to experiment with prices. Test different rates and see what works for your products.
You might want to stick to market pricing as a baseline. Even though your wood is low cost, don’t forget the time and effort that goes into transporting, milling, and storing it. If you’re serious about this as a business, make sure to calculate your costs correctly, including labor.
Totally agree! Your time has value too, don’t forget that.
I think it's awesome you have this unique opportunity! When pricing, consider what you’d be willing to pay for your own work and how much you value your time. Remember, your craftsmanship has worth too—your skills shouldn't be undervalued!
Charge at or just above market prices to keep things fair. You don’t want to undermine other craftsmen who rely on consistent pricing. Plus, it helps maintain value in what you create!
Absolutely, I don’t want to hurt my woodworking neighbors.
Good point! I guess I can adjust as I see how things sell.