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How to price woodworking projects

Woodworkers often price from the lumber receipt and forget that half the time goes into milling, sanding and finishing. Shop overhead adds up too: blades, sandpaper and dust collection.

1. Materials with waste

Figure the board feet a project needs, then add a waste factor for defects, offcuts and milling losses. Many woodworkers use 15–30% depending on the species and how picky the design is. Use your own past projects to set it. Add glue, screws, hardware, finish (the share of the can you use) and any inlays or epoxy.

2. Shop time

Time everything: design and cut lists, milling, joinery, glue-ups, sanding through the grits, finishing coats and dry time between them, and final assembly. Custom projects also have consult and revision time. Charge for it or price it in.

3. Overhead

Saw blades, router bits, sandpaper, dust collection, shop power, shop rent or space, and machine maintenance. Larger tools are investments, so spread them over their working life. A percentage of materials plus labor is a simple way to cover all of it.

Platform and payment fees

Marketplaces usually take a percentage of each sale plus fixed per-order or per-listing charges, and payment processing is often separate. Fee schedules change, so read your platform's current fee page rather than trusting a number you saw once. Remember that fees are charged on the price the customer pays, so they grow as your price grows. Calculate them on your final price, not on your cost.

Choosing a markup

Once you know your true cost (materials + labor + overhead), multiply it to get a price. A common maker rule of thumb is wholesale at about 2× true cost and retail at about 2× wholesale, but that is a starting point, not a law. Check the result against what comparable products actually sell for, then decide whether your quality, story or speed justifies sitting above or below that range. If the price you need is far above what buyers pay, the fix is usually cost or time, not a smaller margin.

Furniture and large pieces often go out by local delivery or freight. Quote delivery separately so it doesn't eat your margin.

Worked example

Notice that the profit line comes after you've paid yourself for your time. That's the number that tells you whether this product is a business or a hobby.

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