HOW DO YOU GUYS FIGURE PROFIT?

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.

well, some of the glass i use in making things is $150 sqft, and other glasses are $4 sqft, yet it takes me the same labor to make the objects. if i used a constant multiplier, my marketplace would be a lot smaller for similar objects.

regards, charlie cave creek, az

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.

I build custom designed furniture.. That sounds about right... ;~)

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). :)

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

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