re: Big commission piece coming my way

It’s called economy of scale…………….

A factory can produce 20 tables (sometimes even more) in the time it takes me to build 1. Therefore, they can sell them cheaper them me and still make a profit. I can’t compete with what they make, so I have to make something different and find a market willing to pay the difference. That is one of the biggest challenges in any custom woodworking business.

It took me a long time to learn to not get my feelings hurt when someone balks at my pricing. It also took me a long time to learn to not negotiate my pricing. When someone asks for a quote, it only takes a few moments to determine a rough estimate of the time and materials needed for the project. I know pretty quick how expensive (or inexpensive) a given project will be and can use that to determine if the potential client is willing to pay the price. If they are ok with the “ballpark” estimate I’ll go forward with a true quote.

When I work up a bid, I go through a pretty extensive check list I’ve developed. One item on the list is work hours. That is the total “man-hours” needed to complete the project. I have a set shop rate and that is multiplied by the total work hours. I typically build “wiggle room” into the bid but that is purely for my benefit. There is no wiggle room in the price. If the client wants a lower price, items are removed from the bid. My labor is non-negotiable.

I have folks come in the shop on a regular basis asking for cabinets who immediately leave after telling me they can get them cheaper at Home Depot/Lowe’s/Ikea/wherever, and that’s ok. We are currently booked through January of 2016.