How to Price your Projects |3 Easy Steps by GoodView Woodworks
If you are new to this kind of industry (Woodworking) some of us might ask, “ How do I price this project right?” We don’t want to make it too expensive or overpriced due to various reasons. In this article, we are going to talk about 3 Easy Steps that will help you create an accurate quote for your projects.
Tip # 1: Valuing your Time on an Hourly Basis
This is the most important step in pricing the project you have, giving yourself an hourly rate. Giving your time value is the hardest part but the most important one. Your time is the most valuable asset you have. So you need to value your time.
To give you an idea of how to come up with your hourly rate, set a goal for yourself. What do you want to achieve? You have to consider of course, not only for the needs of your family but what you need to have extra income.
Tip # 2: Pricing Your Material while Covering Miscellaneous Expenses
Price your material + 15%
List down all the materials you need, sum it up, and add 15% to the total price. Remember that not all of the items will be delivered to your door, some of them will need to be picked up in the store and that will take additional time and effort to do. That additional 15% will cover up other expenses you accrue, like the drive, the fuel, and any extra time you consume. Always remember to value your time.
Tip # 3: Track your Time and Expenses
It is not always “Practice makes perfect”, but rather, practice makes you better.
We cannot avoid mistakes or things we don’t expect while working on the project. We cannot control everything. Keep that in mind.
Take note of the hours you consume to finish every single project, this way you can get an idea of how much time it will take you to finish a certain project and it will help you come up with the perfect pricing.
To sum all of the tips, here is the formula you can use.
The time you consume doing the project X your hourly rate + the materials + 15% = the project price.
Keep this in mind and you will never have a problem giving the project price for your client!
Check out GoodView Woodworks for more great content!
YouTube:GoodView Woodworks
Instagram: @goodviewwoodworks