Woodworking MasterClass: The One Thing You Need to Learn FIRST

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Pricing your products properly is one of the most important things you need to do if you actually want to succeed in business. If you are looking to sell items on Etsy, Shopify, Squarespace, or somewhere like a craft show, you need a reliable pricing method to make sure all of your costs are covered. In this video, I'll walk you step by step through my simple pricing strategy that guarantees you make money each and every time and also talk about why one of the most popular strategies isn't necessarily a good one!
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[@Sam_Francis]

What happened to only taking woodworking-related sponsors, Eric? Quite the change of heart. Between that and the dumb titles you've become a full-on viewer-hostile sellout.

[@peterrschuck]

You give the impression you are sharing this. Then we go and find out it is $32. Sorry but be up front that it isn't free in your presentation. As a pensioner, that is a lot of money to me, especially as it has to be converted from Australian Dollar to US, so about a third more. Liked the idea.

[@SloverOfTeuth]

@@peterrschuck Look at the circumstances he's operating in, then at the workshops of the successful guys. You don't want this clown's "business model" unless you want to be bottom of the pack.

[@davidmertes9912]

Dude, love the content. The problem is that videos titled like yours are super misleading. If I didn’t know any better, I’d lump them into the category with “amazing technology “ videos where a plow being dragged through a field by a mule is the “technology”. I’d suggest being a lot more specific, and it would help clearly setup the viewer’s content expectations.

[@barrywoodham4089]

Agreed. I love your content, but the titles are usually irritating ("I don't know why people do this") and do not indicate what I'm tapping in to. I generally watch yours because I know I enjoy the content from an accidental viewing of one your videos a few months ago (when I subscribed) but I usually avoid similarly titled content like the plague, and I suspect you're missing out on some woodworkers who are avoiding checking you out for the same reason. Just my two cents, consider or disregard as you please.

[@davidm203]

Michigan: Your comment about cutting customers loose who don't want to pay is so spot on. My experience is that your first couple of potential clients are often the worst. Eventually, you find clients that want to pay the right price, so don't let the first couple of cheapskates sour you on your plan.

[@peterzammit9029]

So true. Even when I was trying to start up a photography business, the first 4 or 5 people were absolute time wasters. I'll pay you with exposure, that's too expensive I have a cousin that can do it for free or the classic ghoster.

[@GeorgeMinton-jb8ky]

When my family was in the retail apparel business we determined there were really three different types of customers. Beginning of the season shoppers who wanted the latest styles and bought at retail. Then we had the customer that bought clothes as a necessity and wanted a sale but would buy at regular price. Then we had the customer who only shopped on sale. We determined that we needed all three types of customers even the sale only customers because we needed them to help us clear out our buying mistakes. ( They bought the ugly stuff). It essentially works that way in any business. Sell the ugly stuff to a salvage store, sell the unfinished stuff to an unpainted furniture store, sell the best stuff to the retail or high end customer at regular price. It is a dance. Also finding niche markets that no one has discovered is also a good idea. Finding markets that sell most of the year is good for cash flow. Putting them altogether is a profitable business. We were a one store apparel store. In 1986 about two years after the IBM PC came on the market for $5000 I talked my family into getting a pc and a printer. I input customer data into a database. We created labels and I went to a printer and had them make up postcards. We mailed them out to our customers for our sales twice a year. It was a big boon to our business. These are all the things you need to think about to increase sales. Good luck.

[@micha-42]

WHAT'S IN THE VIDEO ERIC, WHAT'S IN IT, PUT A TITLE THAT SAYS WHAT'S IN IT GODAMIT!

[@steelsunpi]

Agree. Click bait or vague titles and causing me to unsubscribe from so many makers and woodworkers.

[@coryjohnson4721]

But where is the fun in that?

[@zachshott7833]

Atleast this one hes got figured out or understands.....

[@Pilotmaverick]

Yes please. Please add in the title what the video is about. Try to go through your old videos and find what you are searching? Impossible...

[@woodworkingandepoxy643]

I agree. I can't force myself to watch anymore without saying what it's actually about. "Why do people still do this" or "I dont understand why people do this" on every video is just self destructive on a platform like this

[@crowlers6]

Upper Michigan is beautiful! I just wanted to thank you for this video, I don't know if I will take my woodworking to that level but you just took a huge load off my shoulders and are one of the main reasons that have been holding me back! Thanks again Eric!

[@chrisnash2154]

Michigan! Thanks for the detailed layout to price your product. I’m sure others have done something like this, but you’re the only one I have seen that has went to this extent to show how to do it. Thank you!

[@tomlopez1960]

thanks for the work/info you put in your videos

[@truthandlies-nl1ri]

I remember way back in the day when I first started out my wife used to do my billing. She always got aggravated when paying the bill for hardware at the end of the month. So she had me put a white board on the trailer door so every time one of the guys would grab hardware, screws or anything on it. That way I could keep track of what was going out the door. I would buy hardware in bulk and charge retail plus a handling charge. It added up fast and the customer could see where the money went. If they ever had a problem with the charge I would educate them as to how they were saving money because if I had to send someone to the store to pick up the supplies the labor would cost more than the supplies. Have a good day. Every job and customer is different. Time will teach you how to deal with them.

[@ashadowawhisper]

For the folks out there starting up, if you want to get serious about woodworking you need to be charging a day rate. Don't sell yourself short and be an hourly laborer, you're trying to work for yourself. If you're tempted to lower your prices because people often say they cannot afford it, those aren't your customers. Know your craftsmanship and quality of woodwork coupled with the years of experience. If you find you can't sell ANYTHING, broaden your inventory and make small, medium and large-dollar items. let tons of your small and medium-dollar items fuel your larger projects and get you in front of clients that WILL pay the high prices. But no matter how tempted you are to lower your prices on your furniture, don't. Unless you're charging ADAC (Atlanta Decorative Arts Center) vendor prices for poorly made items. There's so much room for learning and I wish I'd had a mentor and I am glad to see Eric helping fellow woodworkers in this regard. When we realize we are not each other's direct competition and help others succeed we all win.

[@azwit7761]

Great advice on difficult customers. It applies to any business. You’ll learn the signs of a difficult customers over time. Learn from that and when you sense they’re going to be difficult, walk away. The time consumed working with difficult clients will destroy your profitability and your business.

[@JorgeBecerra-fz7di]

Upper Michigan is Great! Love your channel. Thanks for that detailed layout on pricing your projects. It is a BIG help for me. Keep those vids coming too. Your videos have touched on every issue I have had to deal with. I have a small work space in a two car garage, but I have to keep things mobile because we still have to park one car in the garage. Not enough electrical outlets, you've touched on that as well. Yeah, you have helped me out tremendously. Thank you.. Jorge

[@tammy3377]

Michigan. this is very good. You have basically confirmed my vision. Now i just need to finish the plan and put it into action. thank you

[@arlenesee392]

Michigan is a beautiful state! Loved the video, as a book keeper and woodworker I definitely relate to this content!!

[@barkingshark6413]

Excellent… thanks Eric

[@GurnIII]

Great video. Thanks for sharing.

[@Steve00036]

Michigan, great video, thanks, keep em coming

[@BruceAUlrich]

Great things to consider when pricing your work!

[@hervebuteau169]

Michigan's great info ! Thank you very much👍

[@jessec8562]

I have a line for all the small items labeled “shop supplies” on my bids. Screws, glue, sandpaper and items like that. It’s normally $5-$10

[@pashaveres4629]

Great line! Sounds like not enough money though. Every time you use a tool you are using it up, yah. A big glue- up uses a visible, even measurable amount of glue; what about saw blades and chisels? Solvent for the pine tar. Pay the sharpening man. Buy a new stone. Spend time sharpening and maintaining your tools. Billing ten bucks seems cheap.

[@jessec8562]

All that equipment and various usages are baked into my price. The shop supplies are just that, the simple supplies. Smaller projects are $5-10 but if I’m doing kitchens or build-ins it’s substantially more.

[@austinadkins8982]

Michigan isn't top of my list, but I can be helpful. I love seeing your content, and I appreciate the information you provide to us!

[@vernonlewis620]

Good information Thanks Spence i grew up in Michigan

[@joshmorris1082]

Michigan happens to be the state that I'm from. With that said love your videos. I did wood working full time for around a year after getting in as a hobby. I probably jumped the gun and wasn't making enough mainly because I didn't charge what I should have. I am setting up a shop again but with much more knowledge at my disposal.

[@kevinc5234]

Michigan. Thanks for the video and worksheet.

[@robandsharonseddon-smith5216]

Never been to Michigan myself but I do appreciate the excellent answer to this FAQ

[@Mindsaw]

Valuable advice on how to establish a pricing structure for woodworking projects!

[@marcbarash6045]

Michigan - Thanks for your time doing this video

[@J4Julz]

Michigan is da bomb... thanks for the video and the pricing guide!

[@briancatlin9087]

Michigan- go Blue! Glad you’re back

[@onetimearound1275]

Very helpful information

[@woodrowsmith8065]

MICHIGAN. Thank you for this most informative set of ideas.

[@glencrandall7051]

Good advice.😀😀

[@zachjohnson4061]

Michigan! Keep up the great content!

[@jesusesmyescudo.9548]

GOD BLESS YOU FROM DOMINICAN REPUBLIC

[@mdorf61]

Eric. Love the show. What cad program do you use? Go Bucks!

[@bruceregittko7068]

Go Blue! Was that what I was supposed to say for making it to the end? Seriously, good video. If I ever “go pro” I’ll be back watching again.

[@jinsonkuderna6995]

Michigan thx for the help great video

[@jbylin]

Nice model. I use similar models in my tech day job as well. Michigan!

[@moudavis5830]

Michigan. Love the channel!!

[@robertbuttke445]

Well done. Michigan

[@erichaskell]

When I was a very small plumbing contractor my biggest problem was competitors wanting my contractors by under pricing me. Usually this did not work as the next bid, raising their prices back where they should be, failed. Another problem was "guess bidding". When I neared the end as a sub contractor and when I could no longer strap on a tool belt I lost my very best contractor who was quoted as saying "if Eric isn't on the job then there is no reason not to take a cheaper bidder.

[@kevin_delgado]

Yay, a video instead of a short!

[@David.M.]

It is cold in Michigan in the winter! Thanks

[@Pheight_]

Been following for inspiration for a while now. Hopefully I'll jump in and start making projects. Oh yeah 10:25 Michigan still sucks. O-H!

[@khaderach19]

2x multiplier? I work in custom furniture manufacturing for a small team. try a 40-50x markup. Somethings we just cant do in-house, we have vendors for that - Stone work, foundry work, powder coating, etc - all those guys also have to get paid. My job is final assembly, finishing and QC. My last project I spent up to 20 hrs just on patina work for aluminum.

[@SAUdustBuilds]

Go Blue!!! Love the video

[@ddutton0]

Michigan, a place I have never been 🎉 great video

[@cuebj]

Michigan. Like Gosforth Handiman in UK, you come from a pricing day job background. So many folk go into business with their hobby. They are not taking a business approach. I've seen many perfectionist hobbyists confused at how they are losing money because the world doesn't love and value their product as much as they do. Eventually they raise prices... and get undercut by the next naive hobbyist turned professional who, in turn... Very important to start with a proper pricing model and refuse jobs that won't pay properly

[@warhammer_studios]

Im a finish carpenter by trade, been at it for 25+ years and when it comes to regular day to day work building decks, installing windows doors and trim pricing has never really been an issue. Where I do have an issue is doing more custom and artistic work, like miniature doll furniture, hand carved and wood burned signs and home accessories and decor. While smaller the work is still time consuming and hard to price. For example I made a 5 ft tall 1"x12" sign with a hand carved Gaelic phrase on it, wood burned designs, then I painted sanded and weathered it...All in all 20 hours work. I charged $35/hour and had issues with the buyer who didn't want to spend $600 on the sign. I ended up settling for $400.

[@deanowens334]

Michigan Is FROZEN! No thanks.LOLOL Ohio is too cold too... I love the information. Very inspiring!

[@nikhoward]

Great vid. Wish KZbin and this vid was about when I first started in this game 25 years ago

[@ZeroGainZ]

Thanks for sharing

[@MildarValsik]

I do a ton of thinking on pricing and on what I value my work as and quality of the piece. Yet at times the reason I don't factor in some things is because I haven't gotten to the point It's my full time job.

[@PatLap]

Oh man I thought I was already following you here! 😮 Thanks IG! 😅

[@LeonardoAguilar2020]

Michigan, home of Ford. Great video new to your channel. However not everyone can charge those prices. I would use your calculation and the 3 X the cost of materials and charge in between. Not on all projects but mainly on high end projects. By the way I can see your sporting a new Harvey 110 LC cabinet saw. Congratulations Keep up the good work

[@christopherjames8206]

Go Blue! 😊

[@VanWelij]

Michigan was too cold for me in the winter. Ice every day, it seemed. Also, you're!

[@flyingpig5418]

Michigan is a neat place. Found your channel recently and have been greatly enjoying your videos. This one is particularly helpful and timely, as I am in the process of spinning up my own shop doing custom work and turnings. Thanks for the videos and for helping to build up others!

[@xlldg2864]

Nice OSU Cornhole boards! Hope you pull them out next time Michigan is in town! The real question is what's up with the new table saw?

[@jjpiatek3294]

Michigan S@*ks. Another good video but even a better saw upgrade. I'm so happy to see another Harvey owner on You Tube. I love my Harvey table saw and hope you do too. Do you plan on doing a video regarding your purchasing decision?

[@drskvch5768]

Oh heck yeah any opportunity to say it- Michigan sucks! how are you liking your delta T2? I'm still a beginner but my job site saw just isn't doing it. Great video. I may download your program, I may look into a side gig with wood working.

[@charlesdevere]

Michigan is cold! I have never heard it as x2 have always used x3 materials x3 gives you wages and profit almost always comes to the right estimate :)

[@jx3inspirationsbydilia]

Michigan- thanks

[@Jeffppuckett]

Bama sucks (sorry I'm in the SEC)! This is a great tool for beginner woodworkers/hobbyists! 90% of the woodworking I do is for my own use, but occasionally I get requests for commissions. This will absolutely come in handy!

[@joshuagrafton8781]

Michigan is what it is. Lol. Thank you for the advice and details.

[@Bigdog603]

Michigan sucks go buckeyes. I like your plan and plan on start using it. thank you🤑🤑🤑

[@jimdfwwoodworks37]

Awesome

[@ChapmanWW]

I just listened to your AWP episode, you gave such great advice about youtube. Now I'm in awe of your video titles, and wish you all the best getting the big surprise for your girlfriend 🤫

[@amberalvarez9431]

Michigan sucks! Thanks for the details. Always helpful

[@SwearingenTurnings]

Michigan. Love your content. Hate your video titles. Please be less click bait and more transparent.

[@cuebj]

Michigan. Complicated Maths (interesting you said it like British English) is only complicated for US and my country, UK. Apart from the few we label as Maths geeks, we are two stunningly lazy and thick people groups. An advantage of living in multi-culture London is seeing how everyone else is unafraid of numbers and appears genius like to our teachers

[@jeltyry]

How are those Rigid power tools? I have a corded trim router and it seems like it's well built and solid. I'm in the market to expand my collection of power tools and I'm going to stick to cordless from now on.

[@FSJD01]

Go Blue!

[@raygannon7824]

Yes 😂 I see many so called professionals selling at the craft shows for less than their kits cost ( I said to one ware in the world did you get your finished things) I know this but let’s live it at wherever your mind wanders! Thanks for showing this maybe us pro wood working individuals can compete! I traveled the world for 49 years looking at the cost of so called supplier to decide on who could do that work. I found that many US companies didn’t even know their overhead numbers ! Monsignor

[@dantemarimpietri9127]

Michigan Sucks! I’m in Cleveland, and love the channel! Want to do a collab? I have a dresser project with customer! Ready to go!

[@arianewell6252]

OHIO STATE!!! Woot

[@keatonherzer5038]

hey eric - been watching your videos for a while now and been enjoying the content. I'm no youtube expert or anything but one thing i wish your channel would do is have video titles that more accurately describe whats going on in the video. If i see a good tip in a video its hard to go back and find again since the titles of the videos dont really tell me whats going on in the video. Anyways keep it up man thanks for the videos!

[@lazygardens]

Good video - so many people lose money and don't realize why. DO NOT CHARGE FOR YOUR LEARNING! If you are a novice, and by necessity slow because of your inexperience, you can't expect to get $50 an hour. Until your speed gets up to average, you will lose money. You need to track the time it takes you - actually write it down - until you have made enough of an item to know how long. And keep track of all the shop supplies you buy, even if you only toss the receipts in a box and add them up once a month.

[@applebutter4036]

Good advice. In fact, I'd probably go so far as to say that it's best for newbs to set their price based on the competition. Don't undercut people, but definitely don't expect to get more than your direct competition.

[@dennisracke1012]

Michigan!!! GO BLUE !

[@BennyHelms]

Michigan!!

[@kingrat5564]

Great insight on pricing! I used to make signs for businesses. I hand painted the lettering and gilded with 24k gold a lot of times in reverse on the backside of glass. When I first got started I didn’t properly value my time and just wanted to stack jobs. Once I started pricing my work correctly I pretty much stoped getting any work. It’s a thin line to try to balance on doing one off custom projects. Everyone wants custom but the price just normally doesn’t fit their budget. I’m guessing it’s the same with 1500$ coffee tables.

[@GeorgeMinton-jb8ky]

If you don't make money doing a project it is just a hobby. You wouldn't invest in a company that didn't make money. Why take your money and time when you do not get a return for your capital and time investment?

[@ajdapozzo8457]

Yo Michigan. Show me the coffee table you made that required forty board foot of walnut lol.

[@dandugan824]

Michigan...? Notre Dame would have been much better. Thanks for the great info!

[@williammetzger3206]

I know I saw a new table saw pretty sure it had a gold top ones that video coming. Oh and by the way Michigan.

[@andiedonahue9400]

Michigan! Oh, and *”You’re”. 😂❤

[@jasonmennella2862]

Muck Fichigan! Haha O… H… Great video. Thanks for the info.

[@AB-nu5we]

So many people want heirloom quality furniture for around, $200. You know the conversation "Could you make me a kitchen table out of (some expensive wood) for $200?" How about 2500+? Me: The wood alone for that size table will be around $1100. "Yeah, but don't you have it already? So it's already paid for?. Me: Oh, you're right. I got that wood for free in a box of Wheaties a couple of years ago. And so it goes. The people that put the most pressure on you are usually the wealthiest. Lake Michigan supplies some of Chicago's water. Chicago trivia.

[@coryjohnson4721]

ERIC! Is your kreg miter gauge square? The wood whisperer wants to know

[@alphaforce6998]

Problem here is that if you are going by "firm" pricing you are giving up the opportunity to negotiate. So you conclude that $1,550 is your ideal price but that really ought to be the minimum you accept. Round that up to $2,000 and then you have a $450 buffer to offer discounts. People who have been doing contract work know there's always a baked in 20% buffer for discounts, meaning that whatever price is initially quoted can be reduced by at least 20% and still be profitable for the contractor while being a better deal for the buyer. The other consideration that you may want to factor in is limiting the degree to which you will customize work. You can design some "base parts" and then offer customizable options for that base part. This lets you control the time it takes to produce the final product while allowing for people to get the results they want. Doing one-offs is really not a sustainable business model for long term unless you are demanding 50% profit margins or better. You also have to consider that one-offs are not necessarily going to translate into repeat business for multiple reasons.

[@monticon1]

Michigan, what’s the story about your aversion to Odies Oil? What’s the back story lol.

[@stuartroberts4544]

Michigan

[@gordonhurd5617]

Go Blue

[@patjord]

2:06 interesting search hahaha

[@rkitzm1]

That team up north (Michagan ) sucks! Thank you for the pricing process explination.

[@AlinTrinca]

That's a nice workaround to get a bit more money, but it's called exclusionary percentage if i recall correctly (might be wrong). 1163 x0.25 and you get your profit, which should be 290. In the end that adds up to 1453.75. I know taxes in the US are a bit dodgy, and it requires you to percetange tax your entire income instead of actually add the percentage on top or something like that.

[@alphaforce6998]

In the UNITED STATES you can simply demand lawful money per 12 USC 411 for all money or its equivalent that you receive, and then such money or its equivalent is not subject to any reporting requirements and is not taxable. This is because the UNITED STATES entered into bankruptcy in 1933, and in 1934 suspended lawful tender (gold and silver coin) replacing it with the FEDERAL RESERVE NOTE. For a time, you could receive either FEDERAL RESERVE NOTES or US TREASURY NOTES but in more recent times these two were merged together into one paper bearing two distinct seals. Everyone is presumed to be using FRNs unless they make a demand for lawful money known.

[@kennethadam2536]

Michigan !

[@jackpalmer2549]

I must day. I'm rather indifferent towards Michigan

[@Graidian]

Michigan (obligatory) You're* (title, hate to be that guy) I saw that search, nice touch

[@chriswhitefield3026]

Does this account for taxes as well?

[@stevemcfarland4661]

It all makes sense, but it always blows my mind how much custom woodworking projects costs. Luckily I just build stuff for myself/family and don't keep track of costs

[@johnshipps441]

Michigan is weird. Everyone there thinks they live in a mitten. Woodworkers in Michigan probably price their projects wrong too. 😂 I kinda like Grand Rapids though if I’m being honest. Anyway, brilliant video. I’ve been in sales and had to estimate pricing for years and this is solid advice throughout.