How to price your work. A Simple Technique.

How to price your work. A Simple Technique.

A real quick and easy way to put a price on the things you sell. Whether you sell one piece at a time like home furniture or if you sell multiples at a craft show.

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50 Comments

  1. Woodcarvings Art on January 16, 2019 at 8:19 pm

    That means am already screwd, i sell with a low prices



  2. mmcfreds on January 16, 2019 at 8:19 pm

    I got asked to duplicate a sign I made for my BJJ dojo. I was going to quote an hourly rate (guessing at the number of hours) until I watched this video. Granted I’m not nearly as skilled as David but this video made me seriously rethink what I’m going to tell the client. Thanks a lot David!



  3. Robert Guinn on January 16, 2019 at 8:19 pm

    Thanks a ton for the help. " Stop screwing yourself over," hit me pretty hard. My father was cabinet maker, I worked with him for years. I’ve been in the Army for almost 12 years now. I’ve been planning to go back into the industry, but I’ve been too scared. I guess I’m institutionalized. Kind of like the old man from the Shawshank Redemption. He didn’t know how to cope on outside. Woodworking has been like therapy for me. My dad passed away two years ago. He was always supportive of any decisions I made. He used to tell me, "underestimating yourself will only lead to you getting screwed in the end." I think I’m a little more comfortable now going into bussiness. I know that wasn’t the point of your video, buts great knowing that advise is out there, and that people care enough about each other to spread it.



  4. Seth Newsome on January 16, 2019 at 8:23 pm

    A lot of people here are getting caught up on the high hourly assumption (cost of living varies a lot by region) and the fact that your "day rate" includes an "hourly rate" in the calculation, but this perspective has really helped me out lately, thank you. It’s helped me in particular respond faster to clients on larger jobs – before I would get too caught up estimating the exact hours I would spend on a multi-day job, but by adding my hourly rate to a daily estimate of my monthly fixed workshop expenses I was able to come up with a quick spreadsheet to estimate jobs. Now I just add day rate + materials and respond quickly – my faster response time has already helped me get more jobs.



  5. Grateful Dude on January 16, 2019 at 8:24 pm

    Dude, if you were making $500/day, you wouldn’t still be buying your shirts at K-Mart.



  6. TheAndipants on January 16, 2019 at 8:26 pm

    This video has been a great tool for me, especially to chase away friends and acquaintances who undervalue my work. So now when I get a message asking “if I buy the materials will you make this for me” I reply with this video. My time and my skills are not free.



  7. Paula Parker on January 16, 2019 at 8:30 pm

    LOVE LOVE LOVE LOVE … this video! Awesome information and philosophy! This IS the way to do it!



  8. Kleo 84 on January 16, 2019 at 8:31 pm

    I think it’s great advise, only problem is, the Millennials don’t respect hand made items, they want it NOW, FAST, CHEAP.



  9. gocowboysgo on January 16, 2019 at 8:34 pm

    Thanks for putting out this video. I am new to woodworking and I had no idea how to put a price on my time and product. I plan on using this to do my pricing. I have been selling my self short. I believe my time is worth more now. I do good work and should be paid. Thanks again.



  10. Rochelle Jahdi on January 16, 2019 at 8:34 pm

    That was awesome, thank you



  11. Linadelle Banusing on January 16, 2019 at 8:36 pm

    Wow! you’re amazing!



  12. scott mclean on January 16, 2019 at 8:37 pm

    I don’t mean any disrespect at al, because your helping everyone but who in the world gets 500 a day or what ever, i the US it may b different but here in UK your lucky to make £120 a day 8/10 hour work,
    No one will pay 50 an hour in Britain



  13. Moloch1038 on January 16, 2019 at 8:37 pm

    Thank you for this post! What to charge has always been a brain fart for me. This helps immensely.



  14. Freeman Woodworking on January 16, 2019 at 8:37 pm

    Great video. Got my mind going



  15. RJ Wohlman on January 16, 2019 at 8:38 pm

    Dude… This if fricking brilliant! Thanks!



  16. unclejack123 on January 16, 2019 at 8:39 pm

    I once asked an (accomplished) artist friend of mine what he thought his work was worth …. without batting an eye he replied … "whatever I can get for it when I’m hungry"…. JRW



  17. Doug Leenheer on January 16, 2019 at 8:40 pm

    What this guy is saying doesn’t even make sense. What you value your time at and what people are willing to spend on the products you create are two very different things.



  18. darrin plank on January 16, 2019 at 8:41 pm

    I need to watch this one everyday



  19. redmudpei on January 16, 2019 at 8:42 pm

    $1000 bird feeder, w00t



  20. Wade Schumpert on January 16, 2019 at 8:43 pm

    Do you still use this method?



  21. Miss Chocolate on January 16, 2019 at 8:43 pm

    Thank You!!!



  22. wood bandit on January 16, 2019 at 8:45 pm

    you are in cukoo land chap



  23. Raed on January 16, 2019 at 8:46 pm

    That’s such a great video and worth millions ! saved a lot of time. I just got one more question, what if I was gifted with that skill, like if I was very talented in doing something and to me it’s so easy to make should I still charge a much as a 20 years experienced person charge for their work ?



  24. Spencer Hoadley on January 16, 2019 at 8:48 pm

    Thank you for this information 🙂



  25. SwordChux on January 16, 2019 at 8:49 pm

    Also, I would note that these rates apply to where you live. $500/day in California, would be about the equivalent of $250/day in the Mid-West.



  26. Javier Broger on January 16, 2019 at 8:49 pm

    oh! God bless youtube been looking for this ! Thanks a lot, very simple technique



  27. cbrSpeedster1 on January 16, 2019 at 8:50 pm

    I make a lot of signs and know I’m underselling myself, But I am selling them by the truck load… My signs are CNC cut and hand painted plus a hand built frame where I’ve seen stenciled signs on Etsy for twice the price. I just wonder how many they sell at that price… Oh well, I still have a day job and selling signs is just a hobby for now…..



  28. Nixon Wu on January 16, 2019 at 8:52 pm

    Does the time used to wait for glue ups added to the total price if you aren’t doing another part of the build during the glue up?



  29. Goofy Dog on January 16, 2019 at 8:53 pm

    from your daily rate, it appears you don’t work much



  30. Denise Stover on January 16, 2019 at 8:55 pm

    Stop screwing yourself…no matter how horny you may be!!! 😂 Jk!

    Seriously, you have just answered for me a question that has been beating me up for a looooong time! I have been truly undermining and underpricing myself for about 20 years!!! As an example, I paint on silk. I paint realistic wildlife, angels, birds, etc. on silk. This is not a common art. I charged a lady $20 for 3 hummingbirds hand painted on 100% pure silk on canvas, size 11”x14”. This should have cost $400-$650 USD. I may be a decent artist but I am so lost when it comes to business!

    Thank you! You have opened my eyes!
    It sounds soooo simple!
    God Bless!!!



  31. John Hubbard on January 16, 2019 at 8:55 pm

    Really there are three possible rates as an "independent" master in your craft. Hourly = Fail as it will never compensate you for the actual cost of running a business and compensating yourself. Piece Work = Knowing your actual costs / risks of running a business in all facets and adding to that your "hourly minimum" + profit (you’re not an employee remember, you’re an owner and owners make profit). Day Rate: Being an Independent Master of your Craft + Being a Master of all associated costs/risks + Profit = The minimum amount you’re willing to accept for the commitment of being on one job for one day (This includes planning you might be doing at home, shopping, etc, It IS not 8 x hours on the job site, It is 8 x hours focused on the job)

    Example: Based on Plumbing Service and Repair / Home Maintenance Service and Repair / Or HVAC (Which I have 25 plus years in), Or based on daily, year after year of paying Contractors to do what my team did not on over 1500 rental properties across all trades. I have found successful craftsman, have all worked their way through this and either failed to understand it and failed, or understood it and evolved and are successful. I.E. Making the Transition to Piece-work / Flat Rate, or much simpler Day and sometimes a 1/2 day rate.

    Some True-isms from where I am from and have worked as an employee/Contractor/business partner/business owner/ and spent the last 10 plus year managing or subbing out all work for 1500+ rentals.

    Hourly Rate: If you are legitimate I.E. all proper license, insurance, paying taxes, are a master at all business related functions (I.E. you know your true costs, and have that managed in an excel file or the like, and have proper, well maintained equipment and tools, the absolute minimum Hourly rate you could charge is $85 an hour. State and Federal taxes alone are going to take half of that. You can make a living doing this, but really, you’re just your own employee which = you get all the headaches of being the owner + being an underpaid employee + no benefits medical 401k etc.

    Piece-Work: Same example as above but you are now selling via piecework, modern term Flat-Rate per task the same work you were doing anyway, and your hourly rate easily goes to $125 on the low side and $185 on the high side. (Which puts your Flat Rate of say install that Garbage Disposal/Toilet/Faucet/Water Heater/Cabinet Reface/Custom Cabinet install etc less than anyone running employees doing the same work. This is the most profitable way to work. But possibly the biggest pain in the ass, especially if you are not an expert salesman. (Here come the flames, I am a craftsman, not a salesman! Really? that table you just built has a voice and sells itself. Everything in life is Sales) But despite being the most profitable business model, if will be the most "Business Owner Hat" labor intensive, which for me equals less fun, less time with my tools.

    Now: If you have reached that pinnacle where your Reputation sells your work, you are in demand, which means most importantly you can turn away all customers shopping by price, looking for a deal etc, and you are only accepting customers / selling to customers that appreciate you being there guy. Now you can sit back and say. What is my Day Rate, this is based on a much more personal relationship with your customer. When you arrive at this point, this person either knows your work or was referred to you by someone that loves your work. You know what you are worth, they know what you are worth, and most importantly they have Pride knowing you did there work, In fact they know you accommodated them, as you are highly sought after, and your time is at a premium.

    Folks that have disposable income, want to spend it on the right guy (right guy meaning human) They want to be able to say/brag "I have a guy for that" They want to know you are going to deliver, you can be trusted, for example in their home alone, or around their family. They believe their project is the most important one and understand they are paying you to make it your most important one. In fact my Biggest pain in the ass since I retired at 58, is those folks will not want to let you go, you built a relationship with them, even trying to recommend them to another trusted craftsman is still a pain in the ass, because if that relationship does not go well you are stuck managing it. These folks are not saying they have money to burn they are saying I want the best and I am willing to pay for that and all it entails. Trust being one of the most important.

    The simple fact is When you are a Master at your Craft, When you know what you are worth, and all that includes, You are going to have had time in your trade to build a reputation, You are going to be able to pick and choose your customers, And you won’t hear a squeak about your prices because the new customers coming in 95% by referral will know all that, and have already decided they want you, and are willing to pay for it.

    End of Wall of Text



  32. humdrummer on January 16, 2019 at 8:55 pm

    my day rate is 10,000 bucks. or is it 100 bucks a day what does that matter if nobody is paying you.



  33. Brett Anderson on January 16, 2019 at 8:55 pm

    I’ve been doing this for income for about three years. I use a day rate. My problem is I pretty consistently underestimate the amount of days required. Nearly all my projects are completely custom and usually include skills and tasks that I’ve never done before. I want to get paid for this time but I also feel weird asking my client to pay for me to learn. Any tips on better estimating my time? Thanks



  34. Fabiola Cristina on January 16, 2019 at 8:56 pm

    awesome vid!! Thank you!!



  35. LoudLifeDeeZie on January 16, 2019 at 8:56 pm

    Nice& simple!



  36. zachattack7 on January 16, 2019 at 8:58 pm

    Just found your Channel randomly while searching for something else but glad I did. Great info friend! Subbed!



  37. Jacko Lantern on January 16, 2019 at 8:58 pm

    why did i cry lol



  38. Not Important on January 16, 2019 at 8:59 pm

    i think i’m fucked. because i’m not really worth anything



  39. Nate Ha on January 16, 2019 at 9:02 pm

    I’ve never met a craftsman who charges a day rate. Where do you live? I worked as a wood worker in Washington for two years and a machinist in Wisconsin and everyone I worked with charged an hourly rate.



  40. Joe Hernandez on January 16, 2019 at 9:02 pm

    Makes total sense. All my life i had ppl tell me i could bank $$$ with my skills… And I’ve never proved the compliments. Ever. Some advice i definitely need to consider. Pre-she-8 the video.



  41. Qodesmith on January 16, 2019 at 9:04 pm

    I agree that you shouldn’t shy away from charging what you’re worth. In my field (web development), a factor higher on the totem pole is "what the market will pay". So this means that sometimes starting with "charging what you’re worth" will actually be lower that what you can get! In any case, your unapologetic attitude is refreshing. Love this video.



  42. Lynn Mckenney on January 16, 2019 at 9:09 pm

    Apologies if I’ve misunderstood, so, if you’re making cutting boards for a craft fair, how do you price them? Certainly not by your day rate….?



  43. Andrew Gonzales on January 16, 2019 at 9:09 pm

    I want to see what ur making that’s $1000 a day. Like come on this has to be a joke . I understand get paid what ur worth. Have a flat rate consumables fee. Flat rate per board foot. Basically u make something for $50 charge three times that u get material cost upfront. Way over doing this.



  44. Nicholas Ovel on January 16, 2019 at 9:12 pm

    I REALLY love this video! Probably the best I’ve seen about pricing yourself! Really, it’s not the item you are pricing…it is you!
    A big problem I see is the horrible amount of advertising of tradesmen saying "I do sub par work. You don’t really want to hire me! My products are borderline pieces of shit" on their hand made products. They don’t say that verbatim, but when you post an ad for selling a wall sconce(example follows) on/in a section full of wall sconces that is 20% cheaper than all of them but 100% better quality… Potential buyer will not look through and think…."20% cheaper…hell yeah! Wow, it even looks 100% better, now I HAVE to order at least 2"….never happens. They see "I copied the design, all of the wall sconces I sell are built with SHIT quality control… They’re not only unoriginal but I just really need cash"



  45. JronmanBuilds on January 16, 2019 at 9:12 pm

    I understand why there is a day rate but I don’t understand why $500? Won’t the customer see $500 a day as quite a bit?



  46. Dan Livingston on January 16, 2019 at 9:13 pm

    I’m a certified financial planner…..and you’re absolutely right.



  47. jcsrst on January 16, 2019 at 9:14 pm

    Thank you.  That needed to be said!



  48. Cari James on January 16, 2019 at 9:15 pm

    Why can’t I do this as a homemaker??? Lol.. the day rate I would charge my husband couldn’t afford.. thanks for the info just started my woodworking business and been wondering how to price. Thanks again very helpful



  49. Bob Dunn on January 16, 2019 at 9:16 pm

    Sound advise



  50. Rogue Possum on January 16, 2019 at 9:17 pm

    Thank you