HOW DO YOU GUYS FIGURE PROFIT?

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your looking not actually for profit but the figure to use. I learned it as Markup. you markup in hopes to make a profit. I learned in Carpentry class that contractors make anywhere from 15%-35% markup (depends on the market and who you do it for) Most want to make a certain percentage profit (often between 15-25% of the whole) The mark up doesn't necessarily mean the profit. If you estimate after the fact it often does. But if you have to Estimate before hand it usually doesn't Anyway to markup. how much you really want to make? 15% is not unreasonable and will at least cover simple overhead. Cost divided by (1.00 - overhead percentage) in otherwords Cost (of materials, labor) divided by .85 = final mark up price.
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Young Carpenter

"Violin playing and Woodworking are similar, it takes plenty of money,
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Perhaps then someone could give me possible cost breakdowns on how furniture like a rocking chair for example can sell for as much as $5,000 or even more. I suppose in some cases it's the reputation of the maker? Or shoud I say artist?
snipped-for-privacy@webtv.net (Jack-of-all-trades - JOAT) wrote in message

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I personally don't go with the 3x cost formula unless there is very little labor involved. I am still cheap and work with 5x cost of materials and have no problems selling my work. I am sure it al depends on your location. In Houston I have a very wide variety of customers.
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I Don't know what you sell but if I were to do that on my current project I would be charging 1,500 for a cupboard. Wait that is what I have but into it but not what it is worth.
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Young Carpenter

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I
it
I build custom designed furniture.. That sounds about right... ;~)
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But this was supposed to be low budget (not including the already low budget tools). I wouldn't feel right charging that much. Although right now the Cupboard doors look down right professional (without a magnifier that is). :)
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Young Carpenter

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I use this formula...........materials times 3...plus 10%....I know I can get more...........but then I'd sell a lot less. cheers John
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Rose Cottage Woodworks
www.rosecottageinn.co.nz/woodworks
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That's not necessarily a bad thing. Would you like to work 60 hours a week and make $500 by selling 20 pieces or work 35 hours and make $1000 by selling 10 pieces?
Figuring selling price by multiplying the material cost is W R O N G ! ! !
If you can make an item from pine and spend $5 for material and two hours labor, you'd be selling it for $16.50. Make the same item from an exotic material (cost = $30, take the same amount of time to make it and sell it for $99. If you can sell the high prices, why not? But if all your customers want cheaper pine, you won't make much of a living. You have to get paid for your time. Ed
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